April 20, 2020 John…

April 20, 2020

John Ballantine
Municipal Finance Policy Branch
College Park 13th Floor, 777 Bay St
Toronto, ON M7A 2J3

Submission on proposed regulations under the More Homes, More Choice Act, 2019 (Bill 108):
ERO 019-1406 - Proposed regulatory matters pertaining to community benefits authority under the Planning Act, the Development Charges Act, and the Building Code Act

Kaitlin Corporation is supportive of the More Homes, More Choice Act, 2019 (Bill 108) and the Housing Supply Action Plan. Kaitlin is a proud member of both the Ontario Home Builders’ Association (OHBA) and the Canadian Home Builders’ Association (CHBA).

Kaitlin Corporation has been building award-winning communities of quality and distinction across southern Ontario for over 30 years. Taking an informed and integrated approach to developing and building master-planned communities with comprehensive amenities and lifestyle settings that appeal to a wide demographic, Kaitlin is one of the largest single-family home builders in the Clarington area. We have also established our presence in communities across the Greater Toronto Area, planning and building in Richmond Hill, Oakville, Aurora, Stouffville, King City, North York, Pickering, Bowmanville, Newcastle, Brooklin, Uxbridge, Collingwood, Midland, the Kawarthas, Bath, and Kingston. We directly employ over 150 people.

Kaitlin has:
 obtained approvals for over 6,700 residential units
 serviced over 4,000 lots
 built over 4,500 homes and close to 1,300 condominium suites
 built an assisted-care facility and an adjoining retirement home
 built community clubhouses which house multiple recreational amenities and conveniences
 developed and built commercial retail properties

This letter is being written responding to the regulatory consultation as the proposed Community Benefits Charges framework and our concern that it will have a profound financial impact for our company and ultimately home purchasers or renters in all Municipalities we build in.

While the Kaitlin is supportive of the Housing Supply Action Plan we have significant concerns regarding the February 28th environmental registry posting on the proposed community benefits authority under the Planning Act and Development Charges Act which may ultimately result in significant increases in fees and charges for new housing in Durham Region. This would make new housing and new rental units in our communities much more expensive unless significant changes are made.

We have looked at some typical examples for our sites in Clarington and Midland and when comparing the current Development Charge and Parkland Value for a Single Detached Unit there is an increase of +/- $35,000 per unit under the proposed DC and CBC. This represents in an increase of greater than 50% from the current rates.

We are recommending the provincial government address a number of specific issues to ensure a fair, balanced and transparent approach for the new Community Benefits Charges authority in support of housing supply and job creation are as follows:

• The CBC regulation must include a detailed ineligible services list for CBCs;
• The proposed cap (15% single tier and a combined 15% between upper and lower tier municipalities] represents a potential significant increase in government-imposed charges for new ownership and rental housing. Currently low-rise and greenfield housing in our community contributes a 5% land dedication towards parkland and contributes to growth related infrastructure through development charges. The proposed regulation moves a number of services initially proposed in the CBC back to hard development charges with 100% cost recovery and there are few if any additional services that should be captured in the new CBC regime that would account for the other 10% of potential additional charges that could dramatically reduce housing affordability.
• There should be NO CBC for low-rise greenfield development. Growth should pay for growth and municipal revenue streams should be protected via Development Charges and Municipality can require parkland dedication in accordance with section 51.1 of the Planning Act (A maximum 5% parkland dedication) for low-rise housing. This would ensure Kaitlin can work with our municipal partners to ensure we are building complete communities and providing physical parkland in our communities. The CBC framework should only apply to high density development.
• The proposed appraisal / land valuation date for low-rise housing at the building permit stage is flawed and must be amended. As currently proposed the appraisal and valuation would occur when the land value is the highest after the development proponent has built and paid for significant infrastructure into the ground. In essence, the CBC as proposed would tax the capital invested by the developer. Furthermore, as currently proposed the appraisal and valuation would occur AFTER the homes have already been sold, thus there is no certainty or predictability for either businesses or consumers potentially resulting in significant adjustments on closing for purchasers over and above what they paid for the home. The CBC payment should be calculated as the value on the day prior to approval of a development application (site plan control, zoning bylaw amendment, and consent to sever applications or draft plan of subdivision application where there is no site plan application).
• Lastly service standards must be applied for municipal implementation of CBC by-laws and strategies. There must be a robust framework in place to ensure fairness, accountability and transparency for the new CBC framework

Kaitlin has been supportive of this provincial governments initiatives to address housing supply challenges that are making both home ownership and rental housing unaffordable. However we are very concerned that the regulatory posting as proposed will result in significant increases in government imposed charges for low-rise housing. Kaitlin Corporation looks forward to working with the Ministry and all stakeholders to establish a fair CBC framework.

Sincerely
Enzo Bertucci
Kaitlin Corporation