Proposed amendments to O. Reg. 82/98 under the Development Charges Act, 1997 in support of the proposed More Homes for Everyone Act, 2022
O. Reg 82/98 (General)
Regulation - LGIC
Bill or Act:
Development Charges Act, 1997
Summary of Decision:
On April 27, 2022, new regulatory amendments were filed and came into force.
These amendments require a municipal treasurer to set out in their annual treasurer's statement, whether the municipality still anticipates incurring the capital costs projected for a given service in the municipal development charges (DC) background study. If not, an estimate of the anticipated amount the municipality now projects incurring would be provided along with an explanation for the variance. Similarly, if there was no spending from a DC reserve in a year, the municipality must also provide an explanation for this.
The new regulatory provisions were made, in support of the More Homes for Everyone Plan, to increase the transparency of development-related charges.
The Ministry of Municipal Affairs and Housing posted the proposal to the Regulatory Registry on March 30, 2022. The regulation aligns with the proposal posted for consultation. Comments received from stakeholders advocated for municipal discretion to determine the level of detail provided in the annual statement. The final regulation provides this flexibility and discretion to municipalities.
These changes will enhance transparency and accountability of DCs by enhancing municipal reporting requirements.
Analysis of Regulatory Impact:
The proposed amendment would apply to all Ontario municipalities that have a development charge by-law.
The proposed amendment would enhance existing reporting requirements for municipalities that levy DCs.
-Municipalities are required to prepare a DC background study, in which they project expenditures on eligible capital.
-This background study is used to inform their DC by-law and the charges levied on development.
-In addition to other reporting requirements, the municipality is now also required to annually account for any variance based on whether they are spending on the capital costs for a service that they had projected over their DC by-law period.
The proposed regulatory amendments amended existing reporting requirements to include additional information that municipalities would likely already have available. As such, the financial impact on the municipal sector is expected to be minimal.
March 30, 2022
Summary of Proposal:
Ontario is the best place to live, start a business and raise a family - but we can only build on our success if all Ontarians and their families are able to find a home that's right for them. The province's housing policies are working to get more homes built faster, but too many Ontarians still struggle to find a home. We are introducing More Homes for Everyone, that proposes targeted policies for the immediate term that make housing fairer for hard-working Ontarians and make it faster to build the homes that families need and deserve.
Addressing the housing supply crisis is a long-term strategy that requires long-term commitment and co-ordination from all levels of government.
The Task Force report is our long-term housing roadmap. Similar to Ontario's approach with regular Red Tape Reduction bills, the province is committed to implementing the Task Force's recommendations with a housing supply action plan every year over four years, starting in 2022-2023, with policies and tools that support multi-generational homes and missing middle housing.
The proposal, if implemented, would enhance transparency of development charges (DCs) by improving municipal reporting requirements. This would apply only to municipalities that levy DCs.
It would require a municipal treasurer, in their annual treasurer's statement, to set out whether the municipality still anticipates incurring the capital costs projected in the municipality's DC background study for a given service. If not, an estimate of the anticipated variance from that projection would be provided along with an explanation for it.
Director, Municipal Finance Policy Branch
April 27, 2022