November 7, 2019

Bill 138, the Plan to Build Ontario Together Act, 2019 proposes three additional changes related to Development Charges and Community Benefit Charges. These changes are contained in Schedules 10 and 31 of the bill.

It proposes to amend the Development Charge (DC) payment schedule for commercial and industrial properties. DCs for these property types will now be payable, in full, at occupancy. Bill 108 had made DCs payable through six installments over a five-year period starting at occupancy. Specific to these property types, this move partially restores the previous practice.

The bill also proposes to preserve the alternate parkland provision (of 1 hectare for every 300 dwelling units) during the transition period. The above two changes represent modest improvements for municipalities.

If passed, municipal Community Benefit Charge calculations would become appealable through the Local Planning Appeal Tribunal (LPAT). This represents an additional administrative step for municipalities.

AMO remains concerned that Development Charge and Community Benefit Charge revenue will be inadequate to support growth without additional support from existing property taxpayers. As AMO has noted in its Bill 108 submission, the methodology for calculating the Community Benefit Charge is of vital importance to the successful financing of local growth-related infrastructure.