Regulation - Minister

Local Improvement Charges Regulation Amendments Under the Municipal Act and the City of Toronto Act

Ministry: Ministry of Municipal Affairs and Housing
Regulation Number(s): O.Reg. 586/06 (Municipal Act, 2001)
O.Reg. 596/06 (City of Toronto Act, 2006)
Bill or Act: Municipal Act, City of Toronto Act
Summary of Decision: O. Reg. 586/06 (Local Improvement Charges (Priority Lien Status) made under the Municipal Act, 2001, was amended by O. Reg. 322/12, and O. Reg. 596/06 (Local Improvement Charges (Priority Lien Status) made under the City of Toronto Act, 2006, was amended by O. Reg. 323/12. These amendments address:

-municipal flexibility to undertake different types of capital works as a local improvement, including, but not limited to renewable energy, energy efficiency and water conservation capital works;

-flexibility for municipalities to enter into agreements with willing private land owners to undertake local improvements on private property and recover the cost from owners; and,

-alternative methods of apportioning the costs of local improvements on private property beyond a charge based on frontage.

O. Reg. 322/12 (Local Improvement Charges (Priority Lien Status) made under the Municipal Act, 2001 and O. Reg. 323/12 (Local Improvement Charges (Priority Lien Status) made under the City of Toronto Act, 2006 came into force on October 25, 2012.
Further Information: Click to open O. Reg. 322/12 Local Improvement Charges Priority Lien Status
Click to open City of Toronto Act, 2006
Click to open O. Reg. 596/06 Local Improvement Charges
Click to open O. Reg. 323/12 Local Improvement Charges Priority Lien Status
Click to open Municipal Act
Proposal Number: 11-MAH011
Posting Date: May 16, 2012
Summary of Proposal: The Ministry of Municipal Affairs and Housing (MMAH) is proposing to amend the Local Improvement Charges regulations under the Municipal Act, 2001 (O.Reg. 586/06) and the City of Toronto Act, 2006 (O.Reg. 596/06).

Current regulation:

Local Improvement Charges are an existing financing tool that is used by municipalities for neighbourhood capital improvements.

Municipalities often use the regulation to finance neighbourhood capital improvements, such as sidewalks and sanitary sewers. These improvements can be initiated by petition from benefiting property owners or by the municipality.

To recover the costs of the improvements, municipalities impose special charges, known as Local Improvement Charges on benefiting properties for their share of the total costs.

Amendments are being proposed to provide new flexibility for municipalities to enter into agreements with willing private land owners to undertake improvements on their property, but only in situations where the property owner has provided consent to be charged for the costs.

Part I of the Local Improvement Charges regulation will continue to apply as is, so that municipalities can continue to finance in the same way the kind of capital improvements that they already undertake.

Proposed amendments:

The proposed amendments would:

-clarify municipal flexibility to undertake different types of capital works as a local improvement, including, but not limited to renewable energy and water conservation capital works;

-provide new flexibility for municipalities to enter into agreements with willing private land owners to undertake improvements on private property, but only in situations where the property owner has provided their consent to be charged for the costs; and,

-allow alternative methods of apportioning the costs of those improvements on private property other than a charge based on frontage.
Contact Address: Michael Ptolemy, Manager
Ministry of Municipal Affairs and Housing
Municipal Finance Policy Branch
13th Flr
777 Bay St
Toronto ON
M5G2E5
Effective Date: October 25, 2012
Decision: Approved