Regulation - LGIC

Development Charge Exemption for Second Units in New Homes Under the Development Charges Act, 1997

Regulation Number(s):
O. Reg. 82/98 General (Development Charges Act, 1997)
Instrument Type:
Regulation - LGIC
Bill or Act:
Development Charges Act, 1997
Summary of Decision:
Ontario Regulations 369/11 and 394/10 under the HSA and RTA were amended to remove references to the Ontario Mortgage and Housing Corporation (OMHC) in both regulations as a result of the OMHC being dissolved on March 31, 2021.
Analysis of Regulatory Impact:
N/A
Further Information:
Proposal Number:
17-MMA005
Posting Date:
April 25, 2017
Summary of Proposal:
-The Ministry of Municipal Affairs (MMA) and the Ministry of Housing (MHO) are proposing to amend O. Reg. 82/98 (General) under the Development Charges Act, 1997.

Overview:

-The Promoting Affordable Housing Act, 2016, amends four acts, including the Development Charges Act, 1997.

-When proclaimed, changes to the Development Charges Act, 1997 would, subject to a regulation of the sort contemplated by this proposal, exempt secondary suites in new homes from development charges.

-Secondary suites - for example basement apartments - are a potential source of affordable rental housing and allow homeowners to earn extra income from their property.

-The changes are intended to help increase the supply and range of affordable housing options in Ontario communities.

Proposed amendments:

The proposed regulatory amendments would:

-Prescribe single detached dwellings, semi-detached dwellings, and row houses on their own lots as classes of new residential buildings in which the creation of secondary suites would be exempt from development charges.

-Prescribe residential dwellings ancillary to single detached dwellings, semi-detached dwellings, and row houses as a class of new residential buildings in which the creation of secondary suites would be exempt from development charges.

-Restrict the gross floor area of secondary suites to being less than or equal to the gross floor area of the proposed primary dwelling, for the purpose of a development charge exemption.
Contact Address:
John Ballantine, Manager
Ministry of Municipal Affairs
Municipal Finance Policy Branch
13th Flr, 777 Bay St
Toronto ON M5G2E5
Effective Date:
March 31, 2018
Decision:
Rejected