Community

Loss of development charges taking a financial toll

A provincial government bill that aims to address the housing crisis in Ontario by reducing bureaucratic costs and red tape that delay construction and push home prices higher is taking a financial toll on York Region.

By July 30, development charges revenue lost due to changes implemented through the More Homes Built Faster Act, 2022 (Bill 23) reached $35.1 million, significantly impacting York’s ability to fund the vital infrastructure required to support the construction of new homes, the region says.

A mid-year financial progress report offers an update on progress to date on expenditures and objectives outlined in the 2023 Regional budget. It provides an update on the financial impacts of the controversial bill, current economic conditions, heightened impacts after the COVID-19 pandemic and other global events.

Without provincial assistance, York Region warns it may have to consider other means to fund required infrastructure, including future tax levy and water and wastewater user rate increases. The region says it will continue to work with all levels of government, specifically the provincial government, “to make the region whole” because of development charges collection reductions due to the bill.

The provincial government has committed to getting 1.5 million homes built over the next 10 years and says the More Homes, Built Faster: Ontario’s Housing Supply Action Plan 2022–2023 is the “next step to getting there.” In addition to reducing bureaucratic costs and red tape, the plan promotes building near transit and reforming zoning to create more ‘gentle density’ and using provincial lands to build more attainable homes.

Developers and businesses can learn more about fees and approvals at york.ca/landdevelopment.

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