Deferred Development Charges for Rental, Institutional and Non-profit Housing

Effective January 1, 2020, development charges for eligible rental, institutional and non-profit housing projects, as defined in Ontario Regulation 82/98, may be deferred and paid in instalments as follows once occupied:

  • Rental and Institutional developments – Six annual instalments over five years; or
  • Non-profit housing – 21 annual installments over 20 years

Upon occupancy, the City will issue a statement with your first instalment amount that is due and payable within 30 days. For the remaining instalments, a new payment statement will be issued annually on the anniversary of the occupancy date.

Deferred Development Charges for eligible developments are charged interest at the Canadian Bank Prime Rate plus three per cent or, if a letter of credit is provided to secure the amount of the development charge, the City’s Cost of Capital plus 0.5 per cent.

Applicants who do not wish to pay in instalments with interest also have the option to pay the full development charge at building permit issuance upon executing a payment agreement with the City.

For instalment payment arrangements, payments may be submitted by:

  • Electronic Funds Transfer (EFT)
    Refer to your bill for instructions on how to submit payment by EFT.
  • Cheque, payable to “Treasurer, City of Toronto.”
Mailed payments  In-person payments 
Submit cheque payments by mail:

City of Toronto
Revenue Services
Deferred Development Charges
5100 Yonge St., Lower Level
Toronto, ON M2N 5V7

In-person payments to be accepted at:

City of Toronto
Revenue Services
Inquiry & Payment Counter
5100 Yonge St., Lower Level
Toronto, ON M2N 5V7

 

    • Development charges payable in instalments are subject to interest from the date of permit issuance.
    • Interest rates are updated quarterly:
      • If financial security is provided, interest is calculated using the City’s Cost of Capital plus 0.5 per cent, otherwise referred to as the “Secured Rate”
      • If financial security is not provided, interest will be applied at the Canadian Bank Prime Rate plus three per cent, otherwise referred to as the “Unsecured Rate”
    • Interest rates for instalment payments are posted below:
    Year Quarter Secured Rate Unsecured Rate
    2020 Q1 2.49% 8.95%
    2020 Q2 2.25% 7.45%
    2020 Q3 1.61% 7.45%
    2020 Q4 1.52% 7.45%
    2021 Q1 2.01% 5.45%
    2021 Q2 2.81% 5.45%
    2021 Q3 2.69% 5.45%
    2021 Q4 2.51% 5.45%
    2022 Q1 2.77% 5.45%
    2022 Q2 3.62% 5.70%
    2022 Q3 5.02% 6.70%

     

  • If you have a signed Agreement with the City to provide a Letter of Credit (Letter of Credit ), the City must receive the original Letter of Credit 10 days prior to occupancy.
  • If a Letter of Credit is provided, interest will be applied daily at the City’s Cost of Capital plus 0.5 per cent. Cost of Capital Interest rates are updated quarterly.
  • Submit your Letter of Credit by mail:

City of Toronto
Revenue Services
Attn: Planning and Policy Development
5100 Yonge St., Lower Level
Toronto, ON M2N 5V7

Transfer of Overdue Charges to Property Tax Account

If any part of the development charge remains past due and unpaid, the overdue amount, including any interest, will be added to the property tax account in accordance with Section 32 of the Development Charges Act. Amounts added to the tax roll are subject to late tax bill payment collection processes.

The City takes action to collect overdue charges. The collection protocol for unpaid property taxes is followed in accordance with Chapter 767 of the Toronto Municipal Code. Penalty and interest rates are set by City by-laws, pursuant to the City of Toronto Act, 2006.

  • Fees may also be added when charges are outstanding.
  • Payments received are applied to the oldest outstanding balance first.
  • Penalty and interest charges on overdue amounts cannot be waived or altered.

Letter of Credit

If there is a Letter of Credit in place, any part of the development charge that remains past due and unpaid, including interest, will be drawn from the Letter of Credit. Any overdue amount not covered by the Letter of Credit will be transferred to the property tax account in accordance with Section 32 of the Development Charges Act. Amounts added to the tax roll are subject to late tax collection processes.

References:

Development Charges – City of Toronto

Development Charges Policy Updates (toronto.ca)