Montreal's New Mayor Overhauls Affordable Housing Policy, Replacing Controversial 20-20-20 Bylaw
In a significant move to tackle the city's ongoing housing affordability crisis, Montreal Mayor Soraya Martinez Ferrada has officially replaced the contentious 20-20-20 bylaw with a new, more flexible framework. The announcement, made on January 23, 2026, marks one of the mayor's first major policy shifts since taking office following her victory in the November 2025 municipal elections.
End of an Era: The 20-20-20 Bylaw
The now-defunct 20-20-20 bylaw, a cornerstone of previous municipal housing policy, mandated that new residential developments of 20 units or more include 20 percent social housing, 20 percent affordable housing, and 20 percent family-sized units. While well-intentioned, the regulation faced criticism from developers and some housing advocates who argued it created bureaucratic hurdles and slowed construction during a period of severe housing shortages.
Mayor Martinez Ferrada, speaking from city hall, acknowledged the bylaw's goals but emphasized its practical shortcomings. "Our city is in desperate need of more homes that people can actually afford," she stated. "The old system, while ideologically sound, was not delivering units at the pace and scale required. We need a policy that incentivizes building, not one that becomes a barrier."
A New Direction for Montreal Housing
The mayor's new strategy, details of which are expected in the coming weeks, is promised to be more adaptable and partnership-driven. Early indications suggest it will focus on:
- Increased Density Bonuses: Offering developers greater allowances for building height and unit count in exchange for guaranteed affordable housing contributions.
- Streamlined Approval Processes: Reducing red tape and accelerating permit timelines for projects that meet specific affordability criteria.
- Public-Private Partnerships: Fostering collaborations between the city, non-profit housing providers, and the private construction sector to fund and build mixed-income developments.
- Geographic Flexibility: Moving away from a one-size-fits-all mandate to allow for different requirements based on neighborhood needs and market conditions.
The policy shift comes as Montreal, like many major Canadian cities, grapples with skyrocketing rents and a critically low vacancy rate. The mayor's office has signaled that the new framework will be part of a broader housing action plan, potentially including investments in city-owned land development and enhanced renter protection measures.
Reactions and the Road Ahead
Initial reactions from stakeholders have been mixed. Affordable housing advocates have expressed cautious optimism, hoping the new model will result in more tangible construction starts. "The proof will be in the pudding," said one community organizer. "We need to see the fine print to ensure this isn't a giveaway to developers at the expense of low-income Montrealers."
The real estate development industry has largely welcomed the change, viewing it as a positive step towards unlocking stalled projects. However, they await the specific financial mechanisms and requirements of the new system.
Mayor Martinez Ferrada's decision to scrap the 20-20-20 bylaw represents a bold early gambit, defining her administration's pragmatic approach to one of the city's most pressing issues. The success of this new housing strategy will be closely watched as a benchmark for her leadership and its ability to deliver concrete results for Montreal residents struggling to find a place to call home.
