DEVELOPMENT CHARGES Bill 108…

DEVELOPMENT CHARGES

Bill 108 proposes to change the administration of DCs, with all DCs being frozen at an earlier stage in the planning process. Moreover, DCs would be deferred for five types of buildings (rental housing, institutional, industrial and commercial) to be paid in six installments. Non-profit housing can be paid over 20 installments. In any deferral options, the first DC installment is to be paid at occupancy.

The proposed regulation provides the following information and direction:

• Municipalities to transition to new DC By-law by Jan 1, 2021.

• DC deferrals for commercial developments are now limited to offices and shopping centres.

• DCs are fixed at site plan application date, but are fixed for two years from site plan approval.

• Ambulances are now included in the hard services category.

• Deferred fees can have interest rates applied, and the Province has advised municipalities can establish their own rates.

• Exemptions are provided (based on current Development Charges Act), where DC funds cannot be spent.

MISSISSAUGA’S COMMENTS

Administering DC payments

The City requests that the proposed regulation provide clear authority to enter into agreements with applicants/owners who benefit from the statutory deferral scheme, and clear authority to register those agreements on title. This will ensure that these outstanding fees are known and can be paid if lands change hands and are not identified through the due diligence process.

Clarity is also needed on when occupancy begins. The first DC installment is due upon obtaining an occupancy permit or the date the building is first occupied. However, industrial, commercial and institutional structures do not require occupancy permits, and in some cases buildings are partially occupied. The City will soon have to take on an enforcement role to follow up on these payments, so clarity in the proposed regulation will be paramount.

Additionally, the City requests that any unpaid DC’s that are added to the tax roll be given priority lien status to increase recovery in a bankruptcy/power of sale scenario (pursuant to s 1(2.1) and (3) of the Municipal Act, 2001).

Freeze should occur at site plan approval not application

Freezing the DCs at site plan application stage encourages applicants to apply for site plan approval early with no intention to proceed to Building Permit. The City requests that DCs be frozen at the site plan approval date, otherwise there is no incentive to resolve comments in a timely manner for premature submissions

Supports setting own interest rates

The City supports the Province’s plans for municipalities to set their own interest rates.