What are Development Charges and why are they collected?
If you are building a new house, building or expanding a non-residential building your construction will likely be subject to Development Charges. Development Charges are one-time fees paid by developers at the time a building permit is issued to help pay for municipal services to new developments, such as roads, transit, water and sewer infrastructure, community centres and fire and police facilities. The Development Charges Act provides the legislative authority for collection of Development Charges.
The principle behind Development Charges is that growth should pay for growth. Development Charges ease the financial burden on existing taxpayers to fund new services as a result of growth. Without development charges, the costs for additional infrastructure would be at the expense of existing property owners in the form of higher property taxes and user fees. Development charges are used by most municipalities in Ontario.
How are Development Charges determined?
The Development Charges Act, 1997 (Act) provides Council with the authority to pass a by by-law to impose Development Charges. The Act requires that a Development Charges Background Study a new Development Charges By-law (By-law) must be completed at least once every five years. The Background study takes the following into account:
• A forecast of the amount, type and location of development, population
• The historical level of capital service levels
• A review of future capital projects to provide for the expected development.
The Act also requires that the municipality must hold at least one Public Meeting to present the updated Development Charges Background Study and proposed Development Charges Rates. Once all of the requirements are met a new By-law is passed based upon the results of the Background Study.
Schedule of Residential Development Charges
|Dwelling Unit Type||Charge per Residential Unit|
|Single and Semi-Detached Dwellings||$ 16,237|
|Other Multiples||$ 14,226|
|Apartments – 2 Bedrooms +||$ 9,966|
|Apartments – Bachelor + 1 Bedroom||$ 6,385|
Schedule of Non-Residential Development Charges
|Adjusted Rate 2022||50% of full charge|
|Charge per Sq. Ft of Gross Floor Area 2022||$ 3.524 per square foot|
Supplementary Information – Local Services and 2022 Indexed Rates
|Service/Class of Service||RESIDENTIAL||NON-RESIDENTIAL*|
|Type||Single and Semi-Detached Dwelling||Other Multiples||Apartments – 2 Bedrooms +||Apartments – Bachelor and 1 Bedroom||(per sq.ft. of Gross Floor Area)|
|Services Related to a Highway||3,207||2,809||1,968||1,261||1.79|
|Public Works (Facilities, Fleet and Equipment)||598||524||366||235||0.34|
|Fire Protection Services||1,510||1,324||927||532||0.84|
|Parks and Recreation Services||3,687||3,230||2,263||1,450||0.29|
*Non-Residential DCs’ are being phased in over a three-year period. The rate is at 50% in 2022, 75% in 2023 and 100% in 2024.