The federal Housing Minister Gregor Robertson’s office confirmed the government’s ongoing commitment to reducing municipal development charges by half. At a recent press conference in Toronto, Robertson reiterated the government’s pledge to lower the fees to alleviate the burden on homebuilding costs. The minister emphasized the significance of addressing development charges as a key challenge affecting building expenses nationwide.
While specifics on the progress of the changes were not provided, Robertson mentioned that the government initially aimed for a 50% reduction in partnership with provinces and territories. He indicated that the process is currently underway across the country and hinted at more detailed announcements to be made in the upcoming federal budget scheduled for November 4.
Robertson’s press secretary, Renee Proctor, reaffirmed the government’s commitment to cutting development charges, stating that the mandate from Canadians is driving swift action to reduce costs and expedite housing construction. The Liberal government’s election platform outlined plans to halve development charges over five years by collaborating with provinces and territories to offset the revenue shortfall through federal investments in essential infrastructure like water and power lines.
Development charges, fees paid by builders to cover new housing’s infrastructure costs, have been increasingly burdensome for municipalities in recent years. Rising fees have been criticized for inflating building costs and impeding efforts to bridge the housing supply gap in Canada.
Toronto Mayor Olivia Chow highlighted financing challenges hindering builders from commencing projects and emphasized the importance of adjusting development charges in discussions with Ottawa. Robertson echoed the focus on lowering building costs and acknowledged the close connection between development charges and infrastructure expenses, particularly in cities like Toronto and Vancouver.
The government plans to introduce a program that balances reducing development charges while ensuring local governments invest in housing infrastructure, as announced by Robertson at a recent convention. The complexities of addressing building costs, given the varying approaches to development fees across municipalities, were acknowledged, with improvements expected to be introduced later in the fall.
During his visit to Toronto, Minister Robertson announced federal funding for the city’s sewer infrastructure and the initiation of the first housing project through the new affordable housing agency, Build Canada Homes. The government will allocate up to $283 million from the Canada Housing Infrastructure Fund to upgrade Toronto’s Black Creek sewer system, complemented by a $425 million contribution from the city. The enhancements to the sewer system aim to support the construction of an additional 63,000 homes, benefiting around 350,000 residents currently served by the infrastructure.
The inaugural Build Canada Homes project at Arbo Downsview will add 540 units, with at least 40% designated as affordable housing. The agency will soon invite developers to participate in the project using factory-built housing technologies to deliver the housing units.