Funding & GrantsCity Outlines Next Steps to Boost Housing Density Near Transit

City Outlines Next Steps to Boost Housing Density Near Transit


Today, the City of Toronto outlined next steps for zoning policies tied to transit nodes, following provincial approval of special zones around rapid transit stops in Toronto. The framework includes 25 Major Transit Station Areas (MTSAs) and 95 Protected Major Transit Station Areas (PMTSAs), intended to unlock residential density permissions within each. The initiative is a response to meeting the Province’s 285,000-home target by 2031. The Federal Government has earmarked $471.1M in their Housing Accelerator Fund to help initiate affordable housing within these areas.

“The approval of transit station areas across Toronto unlocks a huge housing opportunity for residents, for years to come,” said Mayor Olivia Chow. “With more housing near transit stations, we are looking at a future where Torontonians can more easily live, work, and travel across the city we love.”

MTSAs cover lands within a 500m to 800m radius of an existing or planned higher-order transit stop. They must meet provincial minimums: 200 residents and jobs per hectare for subway stations, 160 for light rail, and 150 for GO Transit. PMTSAs add Floor Space Index (FSI) requirements and allow the City to apply Inclusionary Zoning for affordable units.

Toronto skyline, image by UrbanToronto Forum contributor steveve

The newly approved policies set clear minimums for height and density within transit station areas. In lands designated as Neighbourhoods, apartment buildings of up to six storeys are now permitted within 200m of stations or along major streets, with multiplexes and four-storey apartments allowed more broadly. Mixed Use, Apartment Neighbourhoods, and Regeneration Areas carry higher thresholds, with FSI minimum levels starting at 8.0 within 200m and 6.0 within 200m to 500m of the stations. 

On larger parcels capable of supporting three or more towers, heights may reach 30 storeys close to stations and 20 storeys farther out, with the option for additional height where block plans deliver new streets, parks, public spaces, and a varied built form.

Map of MTSAs and PMTSAs, image via City of Toronto

City Planning staff are scheduled to bring a detailed work plan to the Planning and Housing Committee on Thursday, September 25, outlining the steps to translate the new policies into zoning by-laws. Implementing zoning is targeted for Council review by mid-2026, within the Planning Act’s one-year deadline. By meeting this deadline, the resulting by-laws would be shielded from appeals to the Ontario Land Tribunal.

Alongside the statutory consultation required under the Planning Act, staff will host open houses in each Community Council district, provide updates directly to Residents Associations and stakeholder groups, and launch a dedicated webpage with information on the approved policies and their implementation. 

Not all station area designations are moving ahead immediately, as Rob Flack, the Minister of Municipal Affairs and Housing, has withheld decisions on 14 sites. These include 12 Transit-Oriented Communities such as East Harbour, Exhibition, Scarborough Centre, Gerrard-Carlaw, Yonge-Steeles, and several GO stations, along with two PMTSAs in the Keele-Finch Secondary Plan area at Finch West and Sentinel. Policies for these locations remain on hold until a provincial ruling is issued. Details on the reasons for the delays have not been offered.

While most designated station areas are within typical building zones, some intersect with Special Policy Areas tied to historic flood plains, and in these, the Ministry of Municipal Affairs and Housing has applied a zero FSI overlay to limit development. These sites remain under the jurisdiction of the Toronto and Region Conservation Authority, and any change to their policies would require joint approval from the Ministers of Municipal Affairs and Housing, and Natural Resources. 

Zoning implementation for MTSAs and PMTSAs is one of eight initiatives Council advanced under the federal Housing Accelerator Fund, which has committed $471.1 million to support Toronto’s housing targets. It also forms part of the City’s 2023 Housing Action Plan, a package of 54 measures aimed at removing barriers to new construction and expanding affordability.

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UrbanToronto has a research service, UTPro, that provides comprehensive data on development projects in the Greater Golden Horseshoe — from proposal through to completion. We also offer Instant Reports, downloadable snapshots based on location, and a daily subscription newsletter, New Development Insider, that tracks projects from initial application.​​​





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