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Development charges are fees collected from developers at the time a building permit is issued.

The fees help pay for the cost of infrastructure required to provide municipal services to new development, such as roads, transit, water and sewer infrastructure, community centres and fire and police facilities.

Most municipalities in Ontario use development charges to ensure that the cost of providing infrastructure to service new development is not borne by existing residents and businesses in the form of higher property taxes.

2013 Development Charges Bylaw Review

The City of Toronto is undertaking a review of its development charges bylaw. More info

Development Charges Bylaws and Amendments

Council enacted the current development charge bylaw on February 25, 2009. Amendments to the bylaw were enacted in December 2009 and October 2011.
The development charges rates are set out in the following schedule and apply to residential development based on the number and type of dwelling units and non-residential development based on non-residential gross floor area, as applicable.

Lands affected include all lands within the geographic area of the City of Toronto, and the bylaw applies whether or not the land or use is exempt from property taxation.

Schedule of development charges

Indexing and Phase-in

The development charge rates are indexed on February 1st each year using the most recent annual change in the Statistics Canada Quarterly Capital Expenditure Price Statistics, as prescribed by the Development Charges Act.

Except for an annual indexing adjustment, the City of Toronto froze the development charge rates at 2009 levels for approximately two years. Beginning on February 1, 2011, and annually thereafter, the adopted increase in the charges will be phased-in over a period of four years depending on the level of residential development activity in the City. Please review the bylaw for further details.

Exemptions

There are a number of exemptions legislated by the Development Charges Act, 1997, such as the creation of up to two additional units in an existing single detached dwelling, subject to prescribed restrictions. The City of Toronto has allowed for a number of other exemptions and interested parties should review the bylaw or consult with City staff for further details.

Timing of calculation and payment

Generally, development charges are calculated, payable and collected on the date an above grade building permit is issued.

Services included

Development charges assist in funding growth-related capital costs for the following services:

  • Child care
  • Civic improvements
  • Development-related studies
  • Emergency medical services
  • Fire
  • Health
  • Library
  • Parks and recreation
  • Pedestrian infrastructure
  • Police
  • Roads and related
  • Sanitary sewer
  • Spadina Subway extension
  • Storm water management
  • Subsidized housing
  • Transit
  • Water

  • Education development charges

    Please note that Education Development Charges may apply to your project. For more information, visit:

    For further information on development charges:

    Calculation and payment:

    Toronto Building Division
    North York District
    5100 Yonge Street

    416-395-7000
    Toronto and
    East York District
    100 Queen Street West

    416-392-7539
    Scarborough District
    150 Borough Drive

    416-396-7526
    Etobicoke District
    399 The West Mall

    416-394-8002


    General, technical and policy matters:

    Sam Malvea
    Corporate Finance
    416-397-9263
    smalvea@toronto.ca

    Shirley Siu
    Corporate Finance
    416-397-4205
    ssiu@toronto.ca


    Background reports
    (including staff reports and the 2008 Development Charge Background Study, as amended):


    The information contained herein is intended only as a guide to the City of Toronto's policy with respect to development charges. Interested parties should review Bylaw 275-2009, Bylaw 1195-2009 and Bylaw 1228-2011 or consult with the Toronto Building Division to determine charges that may apply for specific land development proposals.


     
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