Property development is provincially regulated, primarily at the municipal level. Municipalities typically control land use and the density of the development through official plans and zoning laws. The ability of an owner to subdivide property is restricted and regulated in a number of provinces, including Ontario. Development charges are also imposed by many municipalities on new developments within their jurisdiction.
Construction of new projects is also subject to provincial and municipal legislation. Building codes set specific standards for the construction of buildings and most municipalities require building permits before the commencement of construction. Building codes also regulate the maintenance of existing structures.
Environmental regulation are mainly at the federal and provincial levels. Many federal environmental programs have been delegated to provincial environmental regulatory authorities to implement and enforce. Certain municipalities also have limited environmental regulations, often related to construction and municipal services (e.g., sewer and wastewater).
Each province issues laws on matters affecting the use and occupation of real estate, including regulations relating to air, water, hazardous substances, waste, and protected species.
Generally, a site plan agreement and/or a building permit are required for the construction or renovation of real property. Environmental permits are generally required for environmentally relevant activities on the real estate and not for the building itself or for the general occupancy of the real estate. Depending on how the property may be used, environmental permits or licenses may be required, including for air emissions, and stormwater and wastewater discharges as a result of the use.
Federal and provincial regulators have authority under environmental laws and regulations to require investigation and remediation of environmental contamination. Generally, an environmental cleanup may be required where authorities seek to reduce or mitigate potential dangers to human health or the natural environment. Development or subdivision of a site will often trigger the need to clean up contamination as part of the permit and development approval process.
Energy codes are developed at the national level through model code and standards processes. The codes are usually adopted by the provinces and enforced locally. Local building codes provide minimum energy efficiency requirements for new buildings. Old buildings are usually not covered by these requirements.
There are a number of voluntary standards for environmentally sustainable buildings. The Building Owners and Managers Association has a voluntary environmental certification program for commercial buildings. The Canada Green Building Council promotes the Leadership in Energy and Environmental Design (LEED) Green Building Rating System, a third-party certification program and an internationally accepted benchmark for the design, construction and operation of high-performance green buildings.