Comprehensive Development Charges Review

The City is undertaking a Comprehensive Development Charges Review, which will include opportunities for engagement. The review will develop recommendations that incorporate the City’s growth-related infrastructure needs, while also considering housing affordability and market conditions.

This review will also assess how the City’s Development Charge Bylaw and policies can support growth, align with Council direction and respond to changing legislation, market conditions and long-term financial needs.

The City is in the early stages of this work and it is expected to continue into 2027. This webpage will be updated as the review progresses.

What Are Development Charges

Development charges are fees that municipalities collect from new development to help pay for the infrastructure needed to support new residents and businesses, such as new or expanded transit, roads, water treatment plants, community centres and fire stations. It is one of the City’s most important tools for funding the infrastructure needed to support growth.

Why a Comprehensive Review

The City last completed a Development Charge study and by-law in 2022. While updates are only required every 10 years, significant changes since 2022 warrant a proactive review, including:

  • Significant provincial legislation affecting Development Charges
  • Shifts in market conditions, including interest rates, construction costs and development activity
  • New and updated Council strategies and programs supporting housing, infrastructure delivery, affordability and economic development
  • Evolved approach to the City’s long-term financial planning
  • Challenges experienced in the City’s Capital Plan

As Toronto continues to grow and change, our development charges policies must evolve to ensure they remain effective, equitable and aligned with the City’s long-term objectives.

For more information on the 2022 Background Study, please visit the By-Law, Rates & Study.

Scope of the Comprehensive Review

This Comprehensive Development Charges Review will:

  • Prepare an updated Development Charge Background Study and Bylaw for Council consideration.
  • Review related development charge policies to ensure they remain financially sustainable, equitable, and responsive to growth, while balancing stakeholder impacts.
  • Assess whether current development charge structures, incentives and exemptions continue to meet City objectives and identify any recommended modifications.
  • Explore the economic and fiscal impacts of new development, and understand the impact of development charges on development and housing supply.
  • Better inform long-term planning for housing and related municipal services, such as water, roads, transit, and other critical capital investments.
  • Provide greater transparency and clarity to residents, businesses and the development industry around the City’s development charges.

The review aims to balance financial sustainability, affordability, competitiveness and city-building priorities.

 

Illustrated city block with icons representing city services like Long-Term Care, Daycares, Libraries, Roads, Waste Diversion, Water, Parks, Emergency Services, and Transit.”

Get Involved

Engagement opportunities and information materials will be posted on this webpage during the review. Contact DCreview@toronto.ca with questions.