Development Charges (DCs) and Front-ending Recovery Payment (FERP)
Purpose
The purpose of Development Charges is to recover the growth related costs associated with the capital infrastructure needed to service new development.
Services
Additional Information
The Region currently has one Development Charge By-Law that governs the collection of development charge. By-Law No.25-22, which was passed on May 25, 2022 and took effect on September 1, 2022. This by-law governs the collection of development charges for residential and non-residential water, wastewater, roads and general services development charges for built boundary, greenfield, and rural areas (PDF file).
This By-law sets 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are indexed annually (April 1) and are subject to change when an existing Development Charges By-law is amended or repealed by Council, or a new Development Charges By-law is passed by Council.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-law and consult with appropriate Regional staff to determine the charges that may apply to specific development proposals.
Please note that local municipalities and Public and Separate School Boards administer their own Development Charge By-laws. For information on their development charge policies, please contact them directly.
The Front-ending Recovery Payment has water, wastewater and road components 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 parcel that has secured residential servicing capacity through an executed Subdivision, Site Plan or Consent Agreement with the Region or the local municipality prior to January 1, 2017.
The Front-ending Recovery Payment will be collected at the earlier of:
- the Owner entering into a Regional Development Agreement for a Subdivision, or
- the Owner obtaining a Building Permit (including for High Density Apartment developments previously not included within a Regional Development Agreement).
Front-ending agreements require the Front-ending Recovery Payments be at the earlier of subdivision or building permit, and this obligation is not affected by changes to the timing within the DCA.
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 the number and/or type of residential units;
- a change of use occurs when altering an existing shell/speculative building, or part of the building, for a new tenant “fit-out” that alters the use for which prior DCs were paid; and
- redevelopment results in a change of use.
| Service type | Development use | When the rate is set (unless rate freeze applies S. 26.2 of DCA) |
When DC is collected |
|---|---|---|---|
| General services | All residential developments categories | At building permit issuance | Prior to first occupancy |
| All non-residential developments categories | At building permit issuance | Prior to building permit issuance | |
| Water, wastewater and roads | All residential categories (except High Density Apartments) | At the earlier of subdivision approval or building permit | Prior to first occupancy |
| High density apartments | At building permit issuance | Prior to first occupancy | |
| All non-residential categories | At building permit issuance | Prior to building permit issuance |
| Service type | Development use | When the rate is set (per the front-ending agreement) |
When it is collected |
|---|---|---|---|
| Front ending recovery payment | All residential categories | At the earlier of subdivision approval or building permit | At the earlier of subdivision approval or building permit |
Important notes:
- Where Section 27 Agreements (including Allocation Agreements) are applicable, both the rate and the timing of payment are governed by the agreement, which may differ from the rules above.
- Rental and Institutional uses have option to pay via Instalment Payments, per 26.1 (3) of the DCA, commencing at first occupancy.
By-law No. 25-22 include provisions to index the Development Charge rates annually on April 1st in accordance with the Statistics Canada Quarterly, Construction Price Statistics (Table 18-10-289-01).
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:
- The amount of the development charge was incorrectly determined;
- 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
- 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 | $1,827.54 | $1,479.45 | $977.81 | $887.18 | $656.85 | $532.91 |
| Roads | $38,064.94 | $30,815.20 | $20,366.56 | $18,479.02 | $13,681.77 | $11,100.22 |
| Area specific DCs (built boundary) | ||||||
| Water | $5,662.35 | $4,588.40 | $3,032.60 | $2,754.10 | $2,039.13 | $1,654.59 |
| Wastewater | $7,189.07 | $5,830.13 | $3,853.29 | $3,502.04 | $2,592.89 | $2,104.16 |
| Front-ending recovery payment – FERP2 (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 | $52,743.90 | $42,713.18 | $28,230.26 | $25,622.34 | $18,970.64 | $15,391.88 |
| Total urban DCs and FERP | $62,243.90 | $50,304.51 | $33,746.32 | $30,277.53 | $22,557.16 | $18,360.40 |
| Total rural DCs | $39,892.48 | $32,294.65 | $21,344.37 | $19,366.20 | $14,338.62 | $11,633.13 |
| Total rural DCs and FERP | $41,067.43 | $33,233.54 | $22,026.59 | $19,941.95 | $14,782.20 | $12,000.27 |
1 Residential development charges are subject to indexing in accordance with section 19 of By-law 25-22.
2 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 | $1,827.54 | $1,479.45 | $977.81 | $887.18 | $656.85 | $532.91 |
| Roads | $38,064.94 | $30,815.20 | $20,366.56 | $18,479.02 | $13,681.77 | $11,100.22 |
| Area specific DCs (Greenfield) | ||||||
| Water | $15,434.95 | $12,500.20 | $8,261.70 | $7,497.34 | $5,551.00 | $4,496.79 |
| Wastewater | $21,703.11 | $17,577.59 | $11,617.49 | $10,542.94 | $7,805.94 | $6,322.04 |
| Front-ending recovery payments – FERP2 (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 | $77,030.54 | $62,372.44 | $41,223.56 | $37,406.48 | $27,695.56 | $22,451.96 |
| Total urban DCs and FERP | $86,530.54 | $69,963.77 | $46,739.62 | $42,061.67 | $31,282.08 | $25,420.48 |
| Total rural DCs | $39,892.48 | $32,294.65 | $21,344.37 | $19,366.20 | $14,338.62 | $11,633.13 |
| Total rural DCs and FERP | $41,067.43 | $33,233.54 | $22,026.59 | $19,941.95 | $14,782.20 | $12,000.27 |
1 Residential development charges are subject to indexing in accordance with section 19 of By-law 25-22.
2 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 square metre of total floor area | Retail | Non-retail |
|---|---|---|
| Region-wide DCs | ||
| General services | $4.049 | $4.049 |
| Roads | $622.277 | $116.019 |
| Area specific DCs (built boundary) | ||
| Water | $18.144 | $18.144 |
| Wastewater | $27.799 | $27.799 |
| Total urban DCs (built boundary) | $672.269 | $166.011 |
| Total rural DCs | $626.326 | $120.068 |
1 Non-residential development charges are subject to indexing in accordance with section 19 of By-law 25-22.
| Per square metre of total floor area | Retail | Non-retail |
|---|---|---|
| Region-wide DCs | ||
| General services | $4.049 | $4.049 |
| Roads | $622.277 | $116.019 |
| Area specific DCs (Greenfield) | ||
| Water | $52.769 | $52.769 |
| Wastewater | $71.022 | $71.022 |
| Total urban DCs (Greenfield) | $750.117 | $243.859 |
| Total rural DCs | $626.326 | $120.068 |
1 Non-residential development charges are subject to indexing in accordance with section 19 of By-law 25-22.
Statement of the Treasurer
Statements of Development Charges Reserve Funds
Contact
For more information, please contact:
Development Officer, Capital and Development Financing, Finance Department
- developmentcharges@halton.ca
- Tel: 905-825-6000 ext. 7290
- Fax: 905-825-8820
- Toll Free: 1-866-442-5866