The federal Housing Minister Gregor Robertson’s office confirmed the government’s ongoing commitment to halving municipal development charges, following the minister’s recent remarks at a Toronto news conference. When asked about reducing fees to lower homebuilding costs, Robertson emphasized the significance of development charges as a cost challenge in construction nationwide. While specifics on the progress of the changes were not provided, Robertson mentioned the initial plan for a 50% reduction in partnership with provinces and territories, with further details expected to be unveiled in the upcoming federal budget on Nov. 4.
Speaking on behalf of the minister, press secretary Renee Proctor reiterated the government’s pledge to cut development charges by half for multi-unit residential housing, aligning with the mandate to swiftly decrease costs and facilitate housing construction. The Liberal party’s spring election platform had outlined a five-year commitment to reducing development charges by half through collaborations with provinces and territories to address revenue gaps. The platform highlighted forthcoming federal investments in essential infrastructure like water, power lines, and wastewater systems to offset the revenue loss.
Development charges, crucial fees paid by builders to cover infrastructure costs related to new housing, have become a significant funding source for municipalities in recent years. Advocates argue that these escalating fees contribute to higher building costs, hindering efforts to bridge the housing supply gap in Canada. In discussions at the news conference, Toronto Mayor Olivia Chow emphasized the financial obstacles preventing builders from initiating projects and emphasized the need to adjust development charges in collaboration with Ottawa to lower construction costs.
Robertson had previously mentioned plans to establish a program aimed at balancing reduced development charges with local government investments in housing infrastructure, acknowledging the complexities due to varying approaches to development fees across different municipalities. Moreover, during his appearance at the Union of B.C. Municipalities convention, Robertson highlighted the forthcoming improvements to address building costs, set to be introduced later in the fall.
The minister’s Toronto visit included announcing federal funding for the city’s sewer infrastructure and the launch of the first housing project under the new affordable housing agency, Build Canada Homes. The federal government’s contributions, totaling up to $283 million from the Canada Housing Infrastructure Fund, will support upgrades to Toronto’s Black Creek sewer system, with an additional $425 million in city funding. These enhancements are expected to facilitate the expansion of the sewer system to accommodate the construction of around 63,000 new homes.
The inaugural Build Canada Homes project at Arbo Downsview will see the addition of 540 units, with at least 40% designated as affordable housing. The agency is initiating a request for qualifications process for developers proficient in factory-built housing technologies to execute the project efficiently.