Changes to the Development Charges Act, 1997 to Enhance Municipalities' Ability to Invest in Housing-Enabling Infrastructure

Regulation Number(s):

N/A

Instrument Type:

Act

Bill or Act:

Development Charges Act, 1997

Summary of Proposal:

In December 2023, the government committed to consulting on potential changes to the development charges (DC) framework to enhance municipal ability to build housing-enabling infrastructure.

The Ministry of Municipal Affairs and Housing (MMAH) has consulted on DC proposals with municipal and industry subject matter experts, including the Association of Municipalities of Ontario and the City of Toronto, and is now seeking to make legislative amendments to the Development Charges Act, 1997 (DCA)

Analysis of Regulatory Impact:

The proposed amendments (with the exception of the DC freeze) would selectively impact individual Ontario municipalities levying DCs depending on their individual circumstances. Where a municipality is impacted, a streamlined (i.e., more efficient and cost-effective process) has been proposed to implement the changes.

It is anticipated that municipalities could be able to recover additional DC revenues from developments. In terms of costs, they are expected to be minimal, mainly related to administrative costs associated with learning about the proposed changes.

It is anticipated that the development sector could have to pay higher municipal development charges depending on the location of their development.

Further Information: