Relevant regulations under this Act:
O. Reg. 82/98 General
O. Reg. 192/07 Toronto-York subway extension
The Act grants municipalities the authority to enact a development charge by-law. Specifically, a municipality can impose a charge on certain new developments, including land purchases and building construction, to offset the increased capital costs of providing services for that new development. Municipalities that have passed a development charge by-law must establish a separate reserve fund for each service to which the development charge relates. In most cases, unless otherwise stated in the by-law, the development charge is payable for a development upon a building permit being issued.
The determination of the amount of development charge that applies to any development is based upon estimates of the anticipated increases in specific services, assuming the average level of service for existing developments is met. Some services that may be financed through a development charge include:
- water supply services
- waste water services
- storm water drainage
- highways and bridges
- electrical power services
- police services
- fire protection services
However, the by-law cannot impose a development charge because of the increased need for the following services:
- cultural or entertainment facilities, including museums, theatres and art galleries
- tourism facilities, including convention centres
- land for parks
- hospitals
- waste management services
- municipal buildings
Any person or organization has the right to appeal a development charge by-law to the Ontario Municipal Board (OMB).