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Development Charges (DCs) and
Front-ending Recovery Payment (FERP)

 
The below summarizes the Development Charge Policy for the Regional Municipality of Halton. This pamphlet is required by O.Reg. 82/98 (as amended by O.Reg. 428/15).

Appeal to By-Law 36-17

Halton Regional Council adopted By-laws No. 36-17, 37-17 and 38-17 on June 14, 2017. These By-laws are effective September 1, 2017. Appeal to By-law 36-17  was received from Penta Properties Inc. If you require this document in an alternate format, call 311.

Purpose

The purpose of Development Charges is to recover the growth related costs associated with the capital infrastructure needed to service new development.

Services


  •   Water
  •   Police
  •   Facilities
  •   Waterfront parks
  •   Wastewater
  •   Paramedics
  •   Social housing
  •   Recovery of early payments
  •   Roads
  •   Growth studies
  •   Waste diversion
  •   GO Transit

Lands affected under the Region’s By-laws and Residential Front-ending Payment include all lands within the geographic area of the Regional Municipality of Halton.

  • Roads and General Services – Region-wide
  • Water and Wastewater Services –area-specific (Built Boundary and Greenfield) including rural if at the time of building permit is issued for the development, a connection of the building to water and/or wastewater services is proposed.
  • Residential Water, Wastewater and Roads Recovery of Early Payment Development Charge – Recovery Area identified as Recovery DC Area (2012-2021) on Schedule “A” of By-law 37-17 where such lands require a servicing allocation under a future allocation program.
  • Water, Wastewater and Roads Front-ending Recovery Payment – Region-wide

Additional Information

Currently, the Region has three Development Charge By-Laws that govern development charge collections in the Region:

These By-Laws set out the applicable services for residential development based on the number and type of dwelling units and non-residential development based on total floor area. Development charge rates are indexed annually (April 1) and are subject to change when an existing Development Charges By-law is amended or repealed by Council, or a new Development Charges By-law is passed by Council.

The information contained within is intended as a guide. Interested parties should review the approved by-laws and consult with appropriate Regional staff to determine the charges that may apply to specific development proposals.

Further this pamphlet does not include Development Charge Information for the Local Municipalities, Public School Board or Separate School Board or their policies on development charges.

The Front-ending Recovery Payment has a water, wastewater and roads component that will apply to all Regional urban residential development and rural residential development connected to water and/or wastewater services. For rural development not connected to water and/or wastewater services, only the roads portion of the Front-ending Recovery will apply.

The following residential developments are not subject to the Front-ending Recovery Payment:

  • 2012 and prior Allocation Programs;
  • any development that has executed a Subdivision Agreement with the Region or the local municipality prior to January 1, 2017; and
  • any development that has executed a Site Plan Agreement or Consent Agreement prior to January 1, 2017.

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 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.

DCs will be calculated using the rates in effect at the earlier of the time an application is made for a site plan or a zoning amendment, if submitted after December 31, 2019. If the development is not proceeding by either of these planning approvals, the planning application is made before January 1, 2020, or 2 years has passed since the zoning or site plan approval has been granted, then DCs will be calculated using the rates in effect at the time the DCs become payable (i.e., residential subdivision agreement execution), where applicable, or at the issuance of the building permit.

Note: Interest will be applied to the DC rates (at the prime lending rate of the Region's bank) 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.

There are a number of exemptions legislated by the Act, such as enlargement of an existing dwelling units subject to prescribed restrictions and specific industrial expansion exemptions.

The Region has allowed for other exemptions, relief, credits and adjustments. Reference should be made directly to By-law No. 36-17 and By-law No. 159-01 (as amended) for further explanation.

NOTE: Only one of the applicable Exemption(s), Relief, Credit(s) or Adjustment(s) shall be applicable to a development or redevelopment (refer to Section 32 of By-law No. 36-17 and Section 21.2 of By-law 159-01(as amended)).

By-law No. 37-17 does not provide for any exemption, relief, credits or adjustments.

By-law No. 36-17 and By-law No. 159-01 (as amended) include provisions to index the Development Charge rates annually on April 1st in accordance with the Statistics Canada Quarterly, Construction Price Statistics (CANSIM Table 327-0058).

By-law No. 37-17 has no provision for indexing.

A person required to pay a development charge, or the person’s agent, may complain to the Council of the municipality imposing the development charges under Section 20 of the Development Charges Act, 1997, that:

  1. The amount of the development charge was incorrectly determined;
  2. Whether a credit is available to be used against the development charge, or the amount of the credit or the service with respect to which the credit was given, was incorrectly determined; or
  3. There was an error in the application of the development charge by-law

A complaint must be made in writing (to the Regional Clerk) stating the complainant’s name, address, where notice can be given to the complainant and reasons for the complaint.

A complaint may not be made under subsection 20(1) of the Development Charges Act, 1997 later than 90 days after the day of the development charge, or any part of it, is payable.

Further information on the process is contained in the Development Charges Act, 1997.

Development Charges (DCs) Rates and Front-ending Recovery Payment (FERP)

Per Dwelling Type Single and Semi Detached Multiple Dwelling (3 or more bedrooms) Multiple Dwelling (less than 3 bedrooms) Apartment Dwelling (2 or more bedrooms) Apartment Dwelling (less than 2 bedrooms) Special Care/Special Need and Accessory Dwelling
Region-Wide DCs            
General Services $3,685.39 $2,883.88 $2,121.17 $1,886.63 $1,380.30 $1,147.65
Roads $19,284.39 $15,409.90 $11,197.25 $9,449.73 $7,280.40 $6,025.91
Area Specific DCs (Built Boundary)            
Water $3,143.56 $2,502.62 $1,818.67 $1,540.85 $1,187.02 $982.86
Wastewater $4,535.49 $3,601.05 $2,617.10 $2,223.56 $1,712.86 $1,418.62
Front-ending Recovery Payment – FERP** (as applicable)            
Water and Wastewater $8,325.05 $6,652.44 $4,833.84 $4,079.44 $3,142.94 $2,601.38
Roads $1,174.95 $938.89 $682.22 $575.75 $443.58 $367.14
Total Urban DCs $30,648.83 $24,397.45 $17,754.19 $15,100.77 $11,560.58 $9,575.04
Total Urban DCs and FERP $40,148.83 $31,988.78 $23,270.25 $19,755.96 $15,147.10 $12,543.56
Total Rural DCs $22,969.78 $18,293.78 $13,318.42 $11,336.36 $8,660.70 $7,173.56
Total Rural DCs and FERP $24,144.73 $19,232.67 $14,000.64 $11,912.11 $9,104.28 $7,540.70

* Residential development charges are subject to indexing in accordance with section 19 of By-law 36-17 and section 16 of By-law 159-01, as amended.

** The Front-ending Recovery payment applies to all Regional Urban residential development and Rural residential development connected to water and/or wastewater services. For Rural development not connected to water and/or wastewater services, only the roads portion of the Front-ending Recovery Payment will apply.

 

Per Dwelling Type Single and Semi Detached Multiple Dwelling (3 or more bedrooms) Multiple Dwelling (less than 3 bedrooms) Apartment Dwelling (2 or more bedrooms) Apartment Dwelling (less than 2 bedrooms) Special Care/Special Need and Accessory Dwelling
Region-Wide DCs            
General Services $3,685.39 $2,883.88 $2,121.17 $1,886.63 $1,380.30 $1,147.65
Roads $19,284.39 $15,409.90 $11,197.25 $9,449.73 $7,280.40 $6,025.91
Area Specific DCs (Greenfield)            
Water $8,689.18 $6,967.49 $5,065.36 $4,267.86 $3,288.40 $2,715.08
Wastewater $10,276.31 $8,244.31 $5,994.05 $5,049.15 $3,890.45 $3,210.98
Recovery DC*** (if applicable) $3,679.00 $2,845.00 $2,157.00 $1,977.00 $1,502.00 $1,135.00
Front-ending Recovery Payments – FERP** (as applicable)            
Water and Wastewater $8,325.05 $6,652.44 $4,833.84 $4,079.44 $3,142.94 $2,601.38
Roads $1,174.95 $938.89 $682.22 $575.75 $443.58 $367.14
Total Urban DCs $41,935.27 $33,505.58 $24,377.83 $20,653.37 $15,839.55 $13,099.62
Total Urban DCs and Recovery DC $45,614.27 $36,350.58 $26,534.83 $22,630.37 $17,341.55 $14,234.62
Total Urban DCs and FERP $51,435.27 $41,096.91 $29,893.89 $25,308.56 $19,426.07 $16,068.14
Total Urban DCs, Recovery DC and FERP $55,114.27 $43,941.91 $32,050.89 $27,285.56 $20,928.07 $17,203.14
Total Rural DCs $22,969.78 $18,293.78 $13,318.42 $11,336.36 $8,660.70 $7,173.56
Total Rural DCs and FERP $24,144.73 $19,232.67 $14,000.64 $11,912.11 $9,104.28 $7,540.70

* Residential development charges are subject to indexing in accordance with section 19 of By-law 36-17 and section 16 of By-law 159-01, as amended.

** The Front-ending Recovery payment applies to all Regional Urban residential development and Rural residential development connected to water and/or wastewater services. For Rural development not connected to water and/or wastewater services, only the roads portion of the Front-ending Recovery Payment will apply.

*** By-law 37-17 applies to lands in geographic area of the Region identified as Recovery DC area (2012 - 2021) on Schedule "A" where such lands require a servicing allocation under a Future Allocation Program.

 

Per Square Metre of Total Floor Area Retail Non-Retail
Region-Wide DCs    
General Services $4.231 $4.231
Roads $325.919 $64.345
Area Specific DCs (Built Boundary)    
Water $13.225 $13.225
Wastewater $21.564 $21.564
Total Urban DCs (Built Boundary) $364.939 $103.365
Total Rural DCs $330.150 $68.576

* Subject to indexing in accordance with section 19 of By-law 36-17.

 

Per Square Metre of Total Floor Area Retail Non-Retail
Region-Wide DCs    
General Services $4.231 $4.231
Roads $325.919 $64.345
Area Specific DCs (Greenfield)    
Water $34.082 $34.082
Wastewater $43.691 $43.691
Total Urban DCs (Greenfield) $407.923 $146.349
Total Rural DCs $330.150 $68.576

* Subject to indexing in accordance with section 19 of By-Law 36-17.

Contact 

For further information, please contact: 

Development Officer
Capital and Development Financing
Finance Department


Email: DevelopmentCharges@halton.ca
Tel: (905) 825-6000 ext. 7290
Fax: (905) 825-8820
Toll Free: 1-866-442-5866

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