Bill 108 - (Schedule 3) – the proposed More Homes, More Choice Act: Amendments to the Development Charges Act, 1997

ERO number
019-0017
Notice type
Act
Posted by
Ministry of Municipal Affairs and Housing
Notice stage
Decision
Decision posted
Comment period
May 2, 2019 - June 1, 2019 (30 days) Closed
Last updated

This consultation was open from:
May 2, 2019
to June 1, 2019

Decision summary

Bill 108, the More Homes, More Choice Act, made changes to the Development Charges Act to provide more certainty of development costs and to increase housing supply in Ontario.

Decision details

This notice is linked to 3 other notices.

As part of the government’s Housing Supply Action Plan, it introduced Bill 108, the More Homes, More Choice Act which received Royal Assent on June 6, 2019. The Act made changes to existing legislation, including the Development Charges Act, 1997, which upon proclamation, provided more certainty of development costs and removed barriers to increase housing supply and make housing more attainable for the people of Ontario.

The amendments to the Development Charges Act, 1997 in Schedule 3 of the More Homes, More Choice Act 2019, included, among other matters, the following:

Development Charge Deferrals and Freeze

The changes made to the Development Charges Act to increase the certainty of development costs include the following:

  • Payment of development charges is now deferred until occupancy for rental housing, non-profit housing, and institutional developments.
    • For rental housing and institutional developments, payment of development charges is made in 6 annual installments beginning when an occupancy permit is issued, or if one is not required, then at occupancy.
    • For non-profit housing developments, payment of development charges is made in 21 annual installments beginning when an occupancy permit is issued, or if one is not required, then at occupancy.
  • Development charges are frozen, for a limited time, early in the development process when a site plan application, or in its absence, a zoning application, is submitted to a municipality.

Development Charge Exemptions for Additional Units

The Development Charges Act was amended to reduce costs to build certain types of homes by, subject to regulation, providing for an additional unit built in a new home, ancillary structure to new and existing homes and in existing rental buildings to be exempt from development charges. This will increase supply and the range of housing options available to Ontarians.

Eligible Services and the Removal of the 10% Discount on Former Soft Services

The changes to the Development Charges Act made by Bill 108, More Homes, More Choice Act supported a range and mix of housing options by enabling municipalities to recover costs for waste diversion and ambulance services, in addition to all former hard services. This facilitated having necessary infrastructure in place for new development.

These changes removed the mandatory 10% discount on eligible capital costs for former soft services so that growth can pay for growth, and municipalities can better provide the services that residents of new developments need. Only services listed under the Act (either in legislation or regulation) are eligible to be recovered through development charges.

Comments received

Through the registry

112

By email

34

By mail

0
View comments submitted through the registry

Effects of consultation

The government received 146 comments related to Schedule 3 of Bill 108. Of these, 112 comments were submitted directly through this ERO notice or specifically referenced the ERO number for this proposal.

Submissions were made by members of the public, municipalities and a range of interested stakeholders, including community groups, development industry, municipal and professional sectors.

All comments and presentations made to the Standing Committee on Justice Policy were also considered. The government introduced a motion to include ambulance services as eligible to be recovered through development charges.

Consultation Summary

There was general support for the government’s objective to address Ontario’s housing crisis by introducing measures to remove barriers to development and increase housing supply. However, there were different perspectives on the best way to address this crisis.

Among other matters, the government heard support from some stakeholders for proposed changes that would support a range and mix of housing options and boost housing supply.

Some stakeholders supported the proposed freeze and deferral for development charges and the exemption from development charges for additional residential units in both the primary dwelling and an ancillary building or structure.

These stakeholders indicated that on balance they felt these changes would help reduce barriers to development and increase the supply of housing in Ontario.

Other submissions, however, expressed concerns with the amendments contained in the Bill. For example, municipal stakeholders expressed concerns about the potential impact of development charge freezes and deferrals on municipal revenues.

There were also concerns from some stakeholders about the changes proposed removal of former soft services from the development charges regime. These comments included concerns about how the proposed new community benefits charge authority would work, as well as requests from some municipalities that the new tool should maintain municipal revenue levels.

The government heard from some stakeholders that they would like to know more detail about the proposed changes – particularly the detail that regulations would provide.

There were also requests from some stakeholders that an extension to the consultation period be provided.

Supporting materials

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Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

Municipal Finance Policy Branch
Address

College Park 13th flr, 777 Bay St
Toronto, ON
M7A 2J3
Canada

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Original proposal

ERO number
019-0017
Notice type
Act
Posted by
Ministry of Municipal Affairs and Housing
Proposal posted

Comment period

May 2, 2019 - June 1, 2019 (30 days)

Proposal details

As part of the government’s Housing Supply Action Plan, Bill 108, the proposed More Homes, More Choice Act would, if passed, make changes to existing legislation, including the Development Charges Act, 1997 reduce development costs and provide more housing options which can help make housing more attainable for the people of Ontario.

If passed, the proposed changes to the Development Charges Act, 1997 would:

  • Support a range and mix of housing options, and boost housing supply
  • Increase the certainty of costs of development;
  • Make housing more attainable by reducing costs to build certain types of homes; and
  • Make other complementary amendments to implement the proposed reforms, including in relation to transitional matters.

Proposed Development Charges Act, 1997 Amendments

Schedule 3 of the Bill proposes amendments to the Development Charges Act, 1997.

The proposed amendments, if passed, would among other matters:

  • Support a range and mix of housing options and boost housing supply by making it easier for municipalities to recover costs for waste diversion, thereby facilitating having necessary infrastructure in place for new development.
  • Increase the certainty of development costs by:
    • Deferring development charges for rental housing, institutional commercial developments and not-for-profit housing until occupancy, with payment occurring over five years, and
    • Freeze development charge rates at an earlier point in time in the development process (i.e. if / when an application is made for the later of site plan or zoning approval)
  • Making housing more attainable by reducing costs to build certain types of homes by providing authority to exempt second units in newly built homes or ancillary structures, and in ancillary structures to existing homes, and the conversion of communal areas to residential units in rental buildings from development charges.
  • Make other complementary amendments to implement the proposed reforms, including measures to ensure a smooth transition to the new authority that allows municipalities to charge for community benefits, which will replace development charges for discounted (soft) services.

The proposed legislation provides more detail on all the proposed reforms and can be viewed on the website identified below.

Supporting materials

View materials in person

Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

Municipal Finance Policy Branch
Address

Municipal Affairs and Housing
13th Floor, 777 Bay St.
Toronto , ON
M5G 2E5
Canada

Office phone number

Comment

Commenting is now closed.

This consultation was open from May 2, 2019
to June 1, 2019

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Contact

John Ballantine, Manager

Phone number
Office
Municipal Finance Policy Branch
Address

Municipal Affairs and Housing
13th Floor, 777 Bay St.
Toronto , ON
M5G 2E5
Canada

Office phone number