Policy & Zoning | Bill 23

Bill 23 and Ontario's Three-Unit Rule

Bill 23, the More Homes Built Faster Act, 2022, is the Ontario law that requires every municipality to permit up to three residential units on most lots as-of-right — no rezoning. It is the floor every Ottawa multiplex project starts from, before the City's own by-law adds more.

The Three-Unit Floor

Bill 23 guarantees three units on a residential lot anywhere in Ontario. It can be arranged in three ways:

Three units in the primary building

A house converted or built as a triplex — three self-contained units under one roof.

Two units in the primary building + one ancillary

A duplex plus a garden suite or laneway home in the rear yard.

One unit + two ancillary (where serviced)

A house plus a coach-house arrangement, subject to local servicing and lot rules.

Source: Province of Ontario — More Homes Built Faster Act, 2022.

Floor, Not Ceiling

The key thing to understand about Bill 23 in Ottawa: it is a minimum. A municipality cannot allow fewer than three units, but nothing stops it from allowing more. Ottawa used that headroom. Its Zoning By-law 2026-50 sets a four-unit as-of-right baseline and permits more in the higher N-zones. So in Ottawa, the City rule governs day to day — but Bill 23 is the backstop that guarantees the province can't let a municipality drop below three.

What Else Bill 23 Did

Beyond the three-unit rule, Bill 23 removed parking minimums for residential development near major transit stations, exempted the additional residential units from development charges in defined cases, and limited the scope of municipal site-plan control for small projects. These changes were designed to make the small multiplex cheaper and faster to approve. Read the full bill text for the precise provisions, which have been amended several times since 2022.

Best For

  • Understanding the province-wide three-unit floor that applies under every Ottawa lot.
  • Seeing how a triplex or duplex-plus-garden-suite qualifies as-of-right anywhere in Ontario.
  • Knowing why Ottawa can — and does — allow more than Bill 23 requires.

Usually Fails When

  • You assume Bill 23 is the operative rule in Ottawa — the City by-law allows more and governs day to day.
  • You treat Bill 23 as a guaranteed fourth unit — the provincial floor is three.

What To Verify Before Spending Money

  • The current Bill 23 text on ola.org, since it has been amended since 2022.
  • Whether your project relies on the provincial floor or on Ottawa By-law 2026-50, which is more generous.
  • Whether your additional units qualify for the development-charge exemptions.

Frequently Asked Questions

What is Bill 23 in Ontario? +
Bill 23, the More Homes Built Faster Act, 2022, is Ontario legislation that requires every municipality to allow up to three residential units on most residential lots without a rezoning. It is part of the province's plan to build 1.5 million homes by 2031, and it sets the as-of-right floor that every Ottawa lot starts from.
How many units does Bill 23 allow as-of-right? +
Bill 23 allows up to three units on a residential lot as-of-right. That can be three units in the main building, or two units in the main building plus one in an ancillary structure such as a garden suite or laneway home. No municipal rezoning or minor variance is required for these three units.
Does Bill 23 override Ottawa's zoning? +
Bill 23 sets a minimum every Ontario municipality must permit. Ottawa cannot allow fewer than three units, but it can allow more — and it does. Ottawa Zoning By-law 2026-50 raises the as-of-right baseline to four units on a serviced lot, so in Ottawa the City rule is the one that governs.
Did Bill 23 remove parking minimums? +
Bill 23 removed minimum parking requirements for residential development near major transit stations across Ontario. Ottawa went further under By-law 2026-50 and removed parking minimums city-wide, not just near transit.

Official Sources Referenced

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