What are Development Charges?

    Development Charges (DCs) are fees that municipalities charge to home builders, developers and other eligible institutions when they build upon or develop land within the municipality.  DCs are charged to help pay for the cost of growth and impact on services that municipalities are responsible for such as roads, transit, water, wastewater, fire and police services. 

    Why is the Town doing this study?

    The Town's Development Charges by-law  is set to expire in November 2019, and a new by-law needs to be established. A background study is required every 5 years by the Development Charges Act in order to set the new development charge rates.

    What is the Development Charges Act?

    The Development Charges Act, 1997 is an Ontario law (legislation) that allows municipalities to charge development charges for the growth-related share of hard and soft services through a development charges by-law.

    What are "Hard" Services?

    Hard services include Fire, Police, Public Works, Roads & Related, Water and Wastewater. Hard services include the total eligible municipal capital costs.

    What are "Soft" Services?

    Soft services include General Government, Library, Indoor Recreation, Parks, Parking, and Transit Services. The DC Act requires that soft services capital costs are discounted by 10%.

    How does Bill 108 affect the Development Charges Act?

    Bill 108, the More Homes More Choice Act, 2019 has received Royal Assent, and proposes changes to the Development Charges Act.  

    Under these changes DCs for rental and non-profit housing, as well as commercial or industrial uses will be paid in annual installments rather than up front.  Also, DCs would be temporarily frozen when a municipality receives an application for site plan or zoning approval, whichever comes later.

    It will also allow municipalities to charge for community benefits (CBC) which will replace DCs for discounted (soft) services.

    How will Midland deal with the affects of Bill 108 changes?

    The Town will establish DCs for soft services in November 2019 and transition to CBC in 2020 once the draft regulations on that process are approved by the Province.