The federal Housing Minister Gregor Robertson’s office reiterated the government’s commitment to halving municipal development charges, following the minister’s vague response during a news conference in Toronto. Robertson confirmed the government’s intention to reduce these fees, highlighting the challenges they pose to construction costs nationwide. He mentioned the initial plan for a 50% reduction in partnership with provinces and territories, indicating that progress is underway.
More details regarding the proposed changes are expected to be revealed in the upcoming federal budget on Nov. 4. Robertson’s press secretary, Renee Proctor, affirmed the government’s pledge to slash development charges, emphasizing the mandate received from Canadians to expedite cost reduction and increase housing construction. The Liberals’ election platform promised a five-year cut in development charges by collaborating with provinces and territories to offset the revenue loss.
Development charges, typically paid by builders to cover new housing infrastructure costs, have become a significant source of funding for municipalities. Rising fees have led to increased construction costs, hindering efforts to address the housing supply shortage in Canada. Toronto Mayor Olivia Chow highlighted the financial obstacles preventing builders from commencing projects and discussed ongoing discussions with Ottawa to adjust development charges to lower building expenses.
Robertson emphasized the importance of infrastructure costs and their connection to development charges, particularly in cities like Toronto and Vancouver. He also mentioned plans to introduce a program aimed at balancing reduced development charges with local government investments in housing infrastructure. Addressing the complexities of varying municipal approaches to development fees, Robertson acknowledged the upcoming improvements to tackle building costs effectively.
During his Toronto visit, Robertson announced federal funding for sewer infrastructure and the launch of the first housing project through the new affordable housing agency, Build Canada Homes. The government will provide financial support for upgrading Toronto’s Black Creek sewer system, enabling the city to expand and accommodate an additional 63,000 homes. The initial Build Canada Homes project at Arbo Downsview will introduce 540 units, with a significant portion designated as affordable housing. Developers utilizing factory-built housing technologies will be invited to participate in the project through a request for qualifications.
