The following is a summary…

The following is a summary of the Town of Whitby staff comments on Bill 17.

Development Charges Act (DCA)

Legislated Residential Development Charge Deferral Program
There could be up to a two (2) year period between building permit issuance and occupancy. Deferring the collection of all residential development charges until occupancy will have a negative impact on the Town’s cash flow in the short term/during the transition. With all but approximately $16 million of the Town’s DC Reserves committed for approved capital projects, the delay in DC revenue will create funding shortfalls, limiting the Town’s ability to advance growth-related projects in 2026 and 2027.
The impact of project deferrals will be that the Town’s approach of delivering “just-in-time” services/growth-related infrastructure before or as new residents move into their homes will not be achievable. In some cases, service improvements related to the development (e.g. new roads, road widenings, new facilities) may only be financially possible after new residents have moved into their homes.
Furthermore, the inability to charge interest on deferred payments diminishes the Town’s purchasing power. Funds that would have been collected at the time of permit issuance would typically be invested, generating interest to offset inflationary impacts on the capital infrastructure projects.
Town staff request that the Province consider amending Bill 17 to allow municipalities to:
• Charge interest on the deferred payments to help offset inflationary pressures; and,
• Collect a financial security for all deferred DC payments or the ability to withhold occupancy permit(s) to ensure the timely collection of DCs.

Eligible Capital Cost Inclusions (Subject to Future Regulation)
Development Charges is founded on the principle that growth pays for growth. Excluding what is eligible to be recovered through DCs would shift the burden from developers to taxpayers and may result in growth-related infrastructure that cannot be built/cannot be built in a timely manner due to taxpayer affordability reasons. For example, Land makes up a substantial portion of costs recovered through development charges. The removal of land from recoverable capital costs, without the introduction of alternative funding mechanisms, will greatly reduce the ability to finance municipal infrastructure projects to accommodate growth (i.e. roads, recreational facilities, fire stations, and other municipal infrastructure required to support more people and workers).

Exemptions for Long-Term Care Homes
The Town’s DC by-law classifies long-term care homes in a separate category from other residential development types. The DC rate for this category is the lowest of all residential development types to support and encourage development of long-term care facilities while still collecting DCs to help fund the construction of future growth-related infrastructure projects.
Although the Town is supportive of measures to encourage this type of development, we do not have alternative revenue tools to prevent the burden of DC exemptions from being directly transferred onto the property tax base. Town staff request that the Province consider funding payments directly to municipalities for all legislated DC exemptions to “make municipalities whole” (i.e. to make non-property tax funds available to pay for future infrastructure projects to support growth).

DC By-law Amendment Requirements
Town staff are supportive of this proposed change, recognizing that it provides greater flexibility and reduces the cost and time for specific DC by-law amendments. By allowing by-law amendments to be enacted without requiring a DC background study or the legislated consultation, the Town can more efficiently align policy decisions on affordability and be more adaptive to evolving needs and economic conditions.

Standardization of Local Services (Subject to Future Regulation)
Town staff are supportive of the standardization and clarification of definitions for “local services” while recognizing the need for flexibility. However, a uniform, province-wide definition may not adequately address the distinct requirements of urban, built-up areas compared to emerging growth regions. A cautious approach is warranted to ensure that standardized definitions remain adaptable to the diverse needs of various municipalities.

DC Credits (Subject to Future Regulation)
While the combining of services would likely result in developers being repaid (via DC Credits) in a more timely manner, the faster repayments may come at the expense of the Town having sufficient funds in DC reserves to proceed with infrastructure projects in the other DC service areas, e.g. recreation and fire.

Interest on Frozen DCs and Installment Payments
Town staff are supportive of this change as it encourages timely construction starts when the prevailing DC rates are lower than the frozen DC rates. That is:
• The frozen rate only applies if a building permit is pulled within 18 months of development application approval.
• In situations where the prevailing rate is lower than the frozen rate (inclusive of interest charges), developers may unduly delay construction start to avoid the higher (frozen) rate.
The Town’s DC interest policy has already been amended to incorporate this, as staff anticipated that it may be counter to the intention of increasing housing supply in a timely manner.

Building Code Act (BCA)

Clarification on Municipal Authority to Enforce Construction Standards
Based on the background information provided, it is understood that this provision aims to standardize the application of the OBC by removing municipalities’ ability to set higher standards for building, particularly through green development standard programs such as the Whitby Green Standard (WGS). This provision will impact the Town’s ability to implement the WGS.
The implementation of WGS is critical to achieving the Town’s community greenhouse gas emissions reduction goal of 40% by 2030 and to be net-zero by 2045. Furthermore, WGS helps to ensure the long-term affordability of living in new homes by creating lower operating costs through the implementation of energy conservation measures and prioritizing lower-cost and lower-carbon energy sources.
To meet local, provincial, and federal climate targets, all buildings that are built now in a GHG-intensive manner will need to be retrofitted at a high cost in the near future. Therefore, it is extremely important that municipalities have the ability to implement green standard programs, like the WGS.
Town Staff understand that a standardized approach to green development standards is sought after, however we encourage that the Province of Ontario, in consultation with municipalities to develop a consistent province-wide approach for municipalities wanting to implement green building standards that are above the minimum requirements in the Building Code, as the Ministry of Municipal Affairs and Housing stated was there intention in their letter dated February 28, 2023 regarding green development standards and Bill 23. At a minimum, the Town encourages the Province of Ontario to align with the forthcoming OBC with energy Tier 3 of the new National Building Code.

Elimination of Secondary Provincial Approval for Innovative Products
The CCMC is a credible federal agency for technical evaluations. The proposed removal of a secondary Provincial approval process is seen as a reasonable streamlining measure to avoid any unnecessary duplication.

Planning Act (PA)

Limiting Requirements for a Complete Application
While the proposed changes to the PA may render the “application deemed complete” process sooner, it should not compromise the municipality’s ability to complete a full and comprehensive review of the submitted material. With respect to the requirement for Ministerial approval to amend OPs, the Town’s OP was amended in 2007 to incorporate a comprehensive list of study requirements. However, depending upon the details of a yet-to-be-released Regulation, the current approved list could be reduced.

As-of-right Setback Variations
The rationale for avoiding Committee of Adjustment hearings is understood. However, the background materials make reference to Minor Variances taking up to a year to approve. In Whitby, the average timeline for approval of a minor variance is between 1 and 2 months. The major concern with the proposed change is that builders may now propose site designs that include the as-of-right reduction for structures as part of their site plan and/or building permit application submissions rather than trying to comply with the prescribed setback provisions of the approved Zoning By-law from the outset.

Elementary and Secondary Schools/Portables
The proposed changes, as they relate to the permission of schools within residential areas and the exclusion of portables from site plan control, are supported. However, it is important that new schools continue to be subject to site plan control.

Amendments to Ministerial Zoning Orders (MZO)
While the intent to bring development to market more quickly may be supported, MZOs can be contrary to the intended use of land in the Town's Official Plan and Zoning By-law. MZOs can also circumvent the comprehensive nature of planning to mitigate land use conflicts and ensure development occurs in an orderly and sequential manner that is in line with the provision of municipal infrastructure (i.e., water, sewer, roads). Ministry staff also tend to rely heavily on local staff for the development and implementation of an MZO, which take staff resources away from other development applications in the queue and other Council initiatives. Finally, there is often a lack of transparency and minimal opportunity for the public to participate in the process.

Inclusionary Zoning
While inclusionary zoning is not being explored further by the Town at this time, this proposal could have implications should it be revisited in the future.

Transit-Oriented Communities
While the expedition and delivery of transit projects can be supported, similar to the above, there is the potential for a lack of transparency and minimal opportunity for the public to participate in this process. MZOs have the potential to circumvent the comprehensive nature of planning and the Town's vision for higher-order transit stations (e.g. Whitby GO).
More information is required. While exceptions may be warranted in certain circumstances, this approach could circumvent a consistent and transparent public process and would ignore the Town’s approved Official Plan (OP) policies, which by their nature, must be consistent with Provincial Policies.
This process has the potential to significantly impact land use designations and associated permitted uses in the Town's Official Plan. Standardized designations and permissions would challenge the Town's ability to reflect local context and character in its land use designations.
More information and analysis are required as it relates to MOF forecasts for the Town compared to the Region's distribution of Schedule 3 forecasts to its local municipalities (i.e. past practice). Further information is also required from the Province with respect to MOF forecasts for lower-tier municipalities, as forecasts are only currently published at the Census Division/Upper-tier (Region of Durham) level of geography. Since the Town is relying upon the approved upper-tier forecasts prepared by the Region of Durham through the Envision Durham exercise in the ongoing OP Review, it is not expected that this will be an issue for the Town to address until the next Comprehensive Review of the Town’s OP.