DEVELOPMENT CHARGES IN ONTARIO
The Development Charges Act grants authority to municipalities to enact a development charge by-law to impose a charge against land to be developed where the development will increase the need for municipal services thus offsetting capital costs.
Municipalities, upon passing a development charge by-law, must establish a separate reserve fund for each service the development charge relates to.
Each municipality will determine the amount of the development charge based on estimates of the anticipated increases in services. The development charge must be paid before a building permit is issued.
The development charges, although beneficial for municipalities in some areas, does not allow for imposing development charges to pay for increased capital costs required for any of the following:
- The provision of cultural or entertainment facilities, including museums, theatres and art galleries
- The provision of tourism facilities, including convention centres
-
The acquisition of land for parks
-
The provision of headquarters for the general administration of municipalities and local boards
-
The provision of a hospital
The main acts affecting development charges in Ontario are:
The documents, information and links published on the LIN website have been collected and prepared as a general guide for the users’ convenience and refer to portions of legislation considered relevant to parks, recreation and culture but should not be used as a substitute for the legislation itself or for legal advice. Despite the care taken in preparing and maintaining the LIN website, documents, information and links, LIN and Parks and Recreation Ontario (PRO), and their employees, contractors, managers, directors and other officers can in no way be held responsible for damages caused directly or indirectly by use of the LIN website, documents, information or links. Persons accessing this information assume full responsibility for the use of the information and understand and agree that LIN and PRO are not responsible or liable for any claim, loss or damage arising from the use of this information.