Payment of DCs may be required for residential and non-residential development when:
- constructing a new building(s);
- adding to or altering an existing building(s) which increases the total floor area (TFA) or number and/or type of residential units;
- altering an existing shell/speculative building or part of the building for a first tenant “fit-out” that is changing the use from that for which DCs were paid at the original permit; and
- redevelopment resulting in a change of use.
For development application made before December 31, 2019, DCs will be calculated using the rate in effect at the time an application is made. Legislative changes introduced through Bill 108 (effective January 1, 2020), provides for the calculation of DCs to be "frozen" based on the rate in effect at the time the development application is made (and accepted by the Local Municipality) until two years after the approval of the application. Legislative changes introduced through Bill 185 (effective June 6th 2024) reduced the “frozen” period to 18 months after the approval of the application.
As such, for development applications approved between January 1st 2020 to June 5th 2024 the DC rate will be frozen for two years from the approval of the application. For development applications approved on June 6th or later, the DC rate will be frozen for 18 months from the approval of the application.
Once the frozen period expires the DC rate in effect at the time of the permit will be applied.
Note: Interest will be applied to the DC rates (pursuant to S26.2(3) of the DCA) from the time a zoning or site plan application is made to the date the DCs are payable.
Generally, payment is required on the date a building permit is ready to be issued, except for the following:
- All residential plans of subdivision (excluding a high density apartment dwelling being developed at a minimum of 4 storeys or containing more than 130 units per net hectare) where water, wastewater, roads and recovery components of the DCs are calculated (and payable at agreement execution) based on the proposed number and type of dwelling unit; with respect to blocks intended for future residential development, based on the maximum number of units permitted under the then applicable zoning. There are also provisions in the By-Law for either an additional payment or a refund of the water, wastewater, road, and recovery components of the DCs, as the case may be, if either greater or lesser residential units are ultimately built.
- Rental housing (that is not non-profit housing) or defined institutional development where DCs will be payable in 6 installments commencing at the earlier of an Occupancy Permit granted under the Building Code Act or actual occupancy.
- Non-profit housing developments where DCs will be payable in 21 installments commencing at the earlier of an Occupancy Permit granted under the Building Code Act, 1992, or actual occupancy.
Notwithstanding the above, the Region may require an owner to enter into an agreement, pursuant to section 27 of the Development Charges Act, 1997, providing for all or part of development charges to be paid before or after it otherwise would be payable.