Proposed Regulatory Matters Pertaining to Community Benefits Authority Under the Planning Act, the Development Charges Act, and the Building Code Act
Regulation - Minister
Bill or Act:
Summary of Decision:
The new regulation under the Planning Act outlines details for the implementation of the community benefits charge authority and parkland dedication. This reg. is part of the framework that provides municipalities with the tools necessary to fund services that growing communities need while making the costs of building housing more predictable.
March 2, 2020
Summary of Proposal:
In May 2019, the Minister of Municipal Affairs and Housing released More Homes, More Choice: Ontario's Housing Supply Action Plan. In support of the Action Plan, the Minister of Municipal Affairs and Housing introduced the More Homes, More Choice Act, 2019 (Bill 108) which received Royal Assent on June 6, 2019. Schedule 12 of the Act, once proclaimed, establishes a new authority under the Planning Act for municipalities to charge for community benefits with respect to land to be developed or redeveloped. Community benefits charges are intended to fund municipal infrastructure for community services, such as land for parks, affordable housing and child care facilities, that are needed to support new residents and businesses associated with new development.
On November 6, 2019, amendments to the community benefits charge provisions under the Planning Act were introduced through the Plan to Build Ontario Together Act, 2019. The Bill received Royal Assent on December 10, 2019. The amendments, set out under Schedule 31 of the Act, include new transition provisions for alternative parkland dedication and a mechanism to appeal a municipality's community benefits charge by- law to the Local Planning Appeal Tribunal.
The community benefits charge authority has not been proclaimed and is not in effect at this time.
This is the second regulatory proposal that the government has posted for public feedback on the proposed components of a new community benefits charge authority. The initial regulatory proposal was posted on the Environmental Registry of Ontario on June 21, 2019 ("Proposed new regulation pertaining to the community benefits authority under the Planning Act", ERO 019-0183).
This proposal outlines additional matters for public input to inform the further development of the community benefits charge authority and regulation under the Planning Act.
II. PROPOSAL FOR PUBLIC COMMENT
This proposal outlines several matters related to the community benefits charge authority under the Planning Act.
The changes made by the More Homes, More Choice Act, 2019 will mean that municipalities will have two primary funding streams to pay for the increased need for services due to new development.
Development charges are a mechanism for municipalities to pay for the capital costs of infrastructure like roads and sewers associated with new development. The government is also seeking feedback in this proposal on changes to the types of services that could be funded through development charges. It is proposed that development charges could also pay for the capital costs of certain community services such as public libraries, parks development (other than acquiring land for parks) and recreational facilities (see Section #2).
The new community benefits charge would complement development charges by giving municipalities the flexibility to fund growth-related capital infrastructure costs of other community services. For example, funds generated through community benefits charges could be used to support community priorities such as acquiring land for parks, supporting affordable housing or building child care facilities which will be needed due to growth.
September 18, 2020