The federal Housing Minister Gregor Robertson’s office has affirmed the Liberal government’s ongoing commitment to reducing municipal development charges by half. This confirmation follows the minister’s recent comments during a news conference in Toronto where he reiterated the government’s pledge to lower the costs associated with homebuilding by cutting development fees.
Robertson emphasized the significant impact of development charges on construction costs nationwide and reiterated the government’s intention to reduce these charges by 50% in collaboration with provinces and territories. While specific details on the progress of these changes were not provided, the minister indicated that further information would be disclosed during the upcoming federal budget announcement on Nov. 4.
Press secretary Renee Proctor later confirmed that the commitment to halve development charges for multi-unit residential housing remains in effect as part of the government’s mandate to swiftly reduce costs and facilitate housing construction. The Liberals’ election platform outlined a five-year plan to work with provincial and territorial governments to address revenue shortfalls resulting from the reduction in development charges.
Development charges, which builders pay to cover infrastructure costs related to new housing projects, have increasingly become a vital source of funding for municipalities. Advocates argue that these escalating fees contribute to higher construction expenses and hinder efforts to address the housing supply shortage in Canada.
During the news conference, Toronto Mayor Olivia Chow expressed concerns about financing challenges that impede construction projects and highlighted ongoing discussions with Ottawa regarding potential adjustments to development charges. Minister Robertson emphasized the importance of lowering building costs, particularly in cities like Toronto and Vancouver, where development charges are closely tied to infrastructure expenses.
Additionally, Robertson discussed plans to introduce a program aimed at balancing the reduction of development charges while ensuring local governments continue investing in housing infrastructure. He acknowledged the complexity of addressing building costs due to varying approaches to development fees across different municipalities.
In a separate announcement, the federal government disclosed funding for sewer infrastructure in Toronto and the initiation of the first housing project under the Build Canada Homes affordable housing agency. The government will allocate up to $283 million through the Canada Housing Infrastructure Fund to upgrade the Black Creek sewer system, with an additional $425 million in city funding. These improvements are expected to support the construction of 63,000 new homes, benefiting approximately 350,000 residents currently served by the sewer system.
The inaugural project by Build Canada Homes will involve the development of 540 units at Arbo Downsview, with at least 40% designated as affordable housing. The agency plans to solicit proposals from developers specializing in factory-built housing technologies to carry out the project.
