A recent city audit in Ottawa has revealed that certain aspects of the development process are experiencing delays despite the urgent need for increased housing construction. The audit identified inefficiencies and inconsistencies within various city departments, leading to extended timelines between development approval by the city and registration with the province.
These delays in the post-approval phase can result in accumulating construction and administrative costs for developers, potentially hindering housing construction and driving up prices. Nathalie Gougeon, Ottawa’s auditor general, emphasized the importance of expediting home construction to maintain affordability.
The audit report focused on the city’s review process for development applications, particularly the “post-approval agreement development stage.” This stage involves the legal team finalizing agreements with developers before projects can be registered, a critical step that secures funding and legal obligations.
One notable finding was the lack of dedicated solicitors handling development agreements, leading to significant delays and missed opportunities for housing development closings. The average post-approval period for projects registered in the previous year doubled compared to 2022, lasting 649 days on average.
Acknowledging the increasing complexity of developments, Gougeon highlighted internal legal challenges contributing to the delays. The audit report made several recommendations, including performing a resourcing analysis, defining clear expectations for agreements, and tracking applications post-approval to streamline the process.
To address these issues, the city has assigned two lawyers exclusively to review development agreements, aiming to reduce bottlenecks and improve turnaround times. Stuart Huxley, the city solicitor, expressed commitment to evaluating and enhancing the process.
Furthermore, the report emphasized the importance of engaging subject matter experts throughout the application process and documenting feedback from both internal and external stakeholders. Implementing these recommendations is crucial to overcoming obstacles and optimizing the development process in Ottawa.
