The federal Housing Minister Gregor Robertson’s office has reiterated the government’s commitment to reducing municipal development charges by half, despite initial vagueness during a news conference in Toronto. Robertson confirmed the government’s pledge to lower fees to alleviate the burden on homebuilders, emphasizing the significant impact of development charges on construction costs nationwide. The minister indicated that discussions were ongoing with provinces and territories to achieve a 50% reduction in these charges.
Further details on the proposed changes are expected to be unveiled in the upcoming federal budget scheduled for November 4. Robertson’s press secretary, Renee Proctor, affirmed that the commitment to slash development charges remains a priority for the government. The Liberals’ election platform outlined plans to halve development charges for multi-unit residential housing over a five-year period in collaboration with provinces and territories.
Development charges, which builders pay to cover infrastructure costs related to new housing projects, have increasingly become a crucial source of revenue for municipalities. Critics argue that escalating fees contribute to higher construction costs and hinder efforts to address the housing shortage in Canada. Toronto Mayor Olivia Chow highlighted the financing challenges faced by builders and emphasized ongoing discussions with Ottawa regarding potential adjustments to development charges to facilitate affordable housing construction.
Acknowledging the complexities of addressing building costs and varying approaches to development fees by municipalities nationwide, Robertson proposed creating a program to balance reducing charges while ensuring investment in housing infrastructure. The minister emphasized the importance of infrastructure costs, particularly in cities like Toronto and Vancouver, and outlined plans to introduce improvements in the fall to address these challenges.
During the Toronto visit, Robertson announced federal funding for sewer infrastructure and the launch of the first housing project under the affordable housing agency, Build Canada Homes. The government will allocate up to $283 million through the Canada Housing Infrastructure Fund to upgrade Toronto’s Black Creek sewer system, with additional funding from the city to support the construction of 63,000 new homes. The inaugural Build Canada Homes project at Arbo Downsview will add 540 units, with a significant portion designated as affordable housing, utilizing factory-built housing technologies to expedite the development process.