Ontario will be revealing its updated policy on affordable housing Monday and is set to include a measure which will not go down well with developers. Metro News reports that the provincial government will allow municipalities to require developers to set aside a percentage of newly-built homes for low-to-moderate income families.

The source behind the report says that there would be discussion with developers on how the rules would be implemented but it could add thousands of new affordable homes to Ontario’s cities.

The Ontario Homebuilders’ Association has expressed concern that so-called ‘inclusionary zoning’ could mean higher costs for homebuyers; however, proponents of the scheme point out that similar initiatives in the US have not had that effect with government subsidies or affordable housing groups offsetting the lower prices of units.

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