The federal Housing Minister Gregor Robertson’s office has reiterated the Liberal government’s commitment to halving municipal development charges, following Robertson’s vague comments during a news conference in Toronto. When asked about reducing fees to lower homebuilding costs, Robertson acknowledged the challenge of development charges nationwide and reaffirmed the government’s pledge to decrease these costs by 50%, in collaboration with provinces and territories.
Further details on the progress of this initiative are expected to be revealed in the upcoming federal budget on Nov. 4. Robertson’s press secretary, Renee Proctor, confirmed that the commitment to cutting development charges in half for multi-unit residential housing remains a priority, aligning with the Liberals’ election platform promise to work with provinces and territories to mitigate revenue gaps caused by the reduction.
Development charges, which builders pay to cover infrastructure costs related to new housing projects, have increasingly contributed to municipal funding in recent years. Advocates argue that these escalating fees inflate construction expenses and hinder efforts to address the housing supply shortage in Canada.
During the news conference, Toronto Mayor Olivia Chow emphasized the financial barriers hindering builders from commencing projects and expressed ongoing discussions with Minister Robertson regarding potential adjustments to development charges. Robertson highlighted the significant role of infrastructure costs, closely tied to development charges, in major cities like Toronto and Vancouver.
In a previous address to the Union of B.C. Municipalities convention, Robertson outlined Ottawa’s plan to establish a program that balances reducing development charges while ensuring local governments invest in housing infrastructure. Acknowledging the complexities in addressing varying municipal approaches to development fees, Robertson indicated forthcoming improvements to tackle building costs effectively.
The minister’s visit to Toronto included the announcement of federal funding for the city’s sewer infrastructure and the initiation of the first housing project under the Build Canada Homes affordable housing agency. The government will allocate up to $283 million from the Canada Housing Infrastructure Fund to enhance Toronto’s Black Creek sewer system, complemented by $425 million in city funding to accommodate an additional 63,000 homes.
The inaugural Build Canada Homes project at Arbo Downsview will introduce 540 units, with at least 40% designated as affordable housing. Developers utilizing factory-built housing technologies will have the opportunity to participate in the project through an upcoming request for qualifications launched by the agency.
