As part of our ongoing work to enable housing to reach the market more quickly, the City of Waterloo is developing a tool to streamline development approvals along a portion of the Erb Street Corridor. This tool is called a Community Planning Permit System (CPPS) and is a land use planning tool which combines Zoning By-law Amendments, Minor Variances and Site Plan applications into one single application and approval process, enabling housing to reach the market more quickly.
Upfront public input is critical to the success of this initiative as once the CPP By-law is in effect, there are no third-party appeals. This means that only the applicant, the Minister, and certain public bodies can appeal decisions made by municipalities regarding the issuance of community planning permits.
Project Updates (November 2025)
To facilitate the successful implementation of the Community Planning Permit System (CPPS), the project boundaries are being amended and scoped to the Erb Street Corridor located outside of the Uptown Projected Major Transit Station Areas (please see map below).
Financial and Market Analysis Update (November 2025)
The City retained N. Barry Lyon Consultants (NBLC) to undertake an analysis of the inclusion of affordable housing or a 'cash-in-lieu' payment as a means of satisfying Facilities, Services, and Matters (FSM) in exchange for extra density for the portion of the Erb St Corridor located outside of the Major Transit Station Areas. In general, the Financial and Market Analysis found that development feasibility is currently challenged and that it would be beneficial to hold off activating the FSM affordable housing provisions in the Erb St Corridor until there is an improved market. It was suggested that the framework still be included in the By-law as it is important that market participants consider FSM into their investment decisions going forward. As such, staff plan to recommend to Council that the FSM affordable housing and cash-in-lieu payment provision for the Erb St Corridor be implemented at a later date, and that another analysis be undertaken in 2027 to inform the activation date and ultimate affordable housing rate and cash-in-lieu value.
Engagement Summary (November 2025)
Thank you to everyone who attended one of the engagement sessions and/or provided comments on the second draft of the CPPS By-law and Urban Design Guidelines. The comments received have been compiled into the attached Public Engagement Summary document which includes staff responses.
Updated Interactive Location Map
Key actions:
- Develop a Community Planning Permit System (CPPS).
- Establish Urban Design Guidelines.
- Propose an Official Plan Amendment for community and Council consideration.
- Propose a Community Planning Permit by-law for community and Council consideration.
- Train staff, communicate new by-law and implement.
Net new units: 50
Implementation timeline: December 1, 2023 to June 30, 2026
Background
When developing the first draft of the CPP By-law, the intent was to carry forward the City’s existing Zoning By-law 2018-050 regulations as a foundation, with updates as appropriate, and to enable CPPS permissions as afforded by the Planning Act. This included replacement of “zones” with “precincts”; more flexibility by introducing discretionary uses that define how land can be used if certain conditions and criteria are met, conditions of approval; ability for staff to approve more types of development applications (Class 2); enhanced process controls (e.g. complete application and pre-consultation meeting abilities, ability to address site plan-level details); ability to secure community benefits; and urban design guidelines that complement the development regulations. The CPP By-law and Urban Design Guidelines have been further refined based on feedback received on the first drafts.
In 2022, the City had a CPPS Background Study undertaken, which produced the following deliverables that have informed this project (PDFs):
• Community Planning Permit System Study Report
• Community Planning Permit System Education Booklet
• Draft Waterloo Official Plan Policies
*Return to City of Waterloo Housing Accelerator Fund page.
