Materials for development charges, community benefits charge and alternative parkland dedication are now available below under ‘Materials for Public Input’. Public meetings for development charges and alternative parkland dedication will be held at the July 12 Executive Committee meeting. Reports for all growth funding tools are now available.

Growth funding tools (GFTs) help fund the infrastructure and services required to accommodate growth from new developments and redevelopments. With a projected 20 per cent increase in population, or about 700,000 more people over the next thirty years, the City needs a plan to pay for our growth today and in the future. To accommodate this growth and ensure a livable city, the City uses GFTs to invest in infrastructure and services like roads, transit, water and sewer systems, community centres, parks, housing and childcare.

The Ontario Government enacted through Bill 197 changes to how municipalities generate funding from development. The changes made through Bill 197 means the City must update three primary growth-related funding tools:


Summary of Policy Recommendations

Development charges update: The background study has been completed in accordance with the prescriptive methodology set out in legislation to establish calculated rates. To support the growth related capital investments, the calculated development charge rate increases are 40 per cent for non-residential developments and 46 per cent for residential developments. Construction cost escalation, and increases in growth related infrastructure investments being made in housing, transit and roads can be attributed to the rate change, with over 80 per cent of the rate increase driven by these three services.

To cushion the impact of the increase on development, the City is proposing a measured implementation process by gradually phasing-in rate increases over time, while supporting city-building objectives, including investing in infrastructure and services, encouraging the growth in housing supply overall and supporting the delivery of affordable housing.

The recommended transition would implement rate changes over a two-year period, with 50 per cent of the increase implemented when the current bylaw expires on May 1, 2023, and full rates coming into effect on May 1, 2024. For developments where Inclusionary Zoning applies, a further transition is provided such that rates will be phased-in over two years starting in May 2025.

Community benefit charges update: The community benefits charge (CBC) is the new Section 37 of the Planning Act replacing the previous authority to permit increased height and/or density in exchange for community benefits (also referred to as density bonusing). CBCs can be levied on developments and redevelopments that are at least five storeys in height and have at least ten residential units.

The CBC is restricted and cannot exceed four per cent of the appraised land value at the time a building permit being issued. The City anticipates the community benefits charge will result in the City collecting significantly less revenue than the Section 37 density bonusing tool, even though the CBC may apply to a wider range of developments.

The City is providing a measured implementation process which balances the impacts on new development. To protect important housing initiatives, the City is proposing that Housing Now projects and affordable housing be exempt from the CBC. Any application for a development under 10,000 square metres that is complete before the new bylaw is enacted will not be subject to the CBC. In addition, development with a Council adopted Section 37 density bonusing bylaw before the new bylaw is enacted will not be subject to the CBC. This protects developments that are in the pipeline, giving them time to adjust to the new rate.

Alternative parkland dedication rate update: Staff are recommending a phased approach to advancing the new alternative parkland dedication rate in order to allow time for more consultation and refinement of this important city-building tool. Because the current alternative parkland dedication rate expires on September 18, 2022, staff are proposing an interim re-adoption of the current alternative parkland dedication rate to ensure the City is able to continue using the tool. A new density-responsive alternative parkland dedication rate will be presented to Council following further consultation in Q2/Q3 2023.

For more information on the growth funding tools, please review Materials for Public Input in the menu below for the draft bylaws and studies.

For more information, please review the Frequently Asked Questions.

The City of Toronto is undertaking a review of three of its growth funding tools: Development Charges, Community Benefits Charge, and Alternative Parkland Dedication Bylaws. The following studies, strategies and bylaws are now available to the public for input.

Development Charges

Community Benefits Charge

Alternative Parkland Dedication


Growth funding tools (GFTs) help new developments (or redevelopments) pay for the municipal services and infrastructure that support residents and businesses. Growth funding tools are based on the principle that growth in our city pays for growth.

The City uses the revenues from these tools to pay for public spaces, clean drinking water, transit, libraries and other infrastructure and services needed to support our growing population and a thriving city and create complete and vibrant communities.

There are three types of growth funding tools:

  • Development charges are a one-time fee collected at the time a building permit is issued to help pay for the capital investment required to support growth such as roads, transit, water and sewer infrastructure, community centres and fire and police facilities. It can only be used to fund growth-related capital costs, and cannot be used to fund other costs, such as operating costs, state of good repair or capital maintenance.
  • Community benefits charge is a new funding tool introduced by the Province that replaces Section 37 the density bonusing tool. The charges can apply to new developments with five or more stories and contains or 10 or more residential units and is capped under provincial legislation at 4 per cent of land value. This funding tool is flexible and can be used on a wide range of growth-related capital infrastructure provided the associated costs are not already recovered from the development charge or parkland funding tools.
  • The alternative parkland dedication rate supports the expansion and improvement of the parkland system through the creation of new parks, enhancement of existing parks and/or generation of revenue to fund recreational facilities.  This tool also supports the development of community recreation centres, arenas, and playgrounds.

Collectively, these three financial tools generate approximately $750 million in revenue for the City of Toronto each year, along with services or benefits provided in-kind, which have been used to help pay for building and improving infrastructure and services that support new residents and businesses.

We want to thank everyone who took the time to participate in one of the engagement sessions and to provide feedback on the growth funding tools.

The graphic below summarizes the engagement that was conducted as part of this project.

The following themes emerged from the consultations:

  • Who should pay for growth – the extent growth should pay for growth or whether growth costs should be shared by all homeowners
  • Housing affordability – how rate changes may affect housing affordability
  • Impact of rate changes on new development – potential negative impacts on new development
  • Transition – how rates changes will be transitioned to allow development to adjust to the new level of charges
  • Interest in CBCs – including what would be funded, how stakeholders could become involved, and the in-kind contribution process

Feedback and comments received from the public, stakeholder groups and industry informed the recommended updates to the bylaws and policies that are in the GFT reports being presented to the Executive Committee in July 2022. Specifically, the stakeholder feedback helped shape the provision of adequate transition periods to protect the development projects that are in the pipeline and to provide adequate time for rate changes to be incorporated into future projects while adjusting to prevailing economic conditions.

Details on what we heard from our stakeholders can be found in this report: What We Heard Report

Spring/Summer 2021  

  • Project launch
  • Technical studies – data collection and analysis
  • Bill 197 and Work Plan report to Executive Committee (EX24.4 )
  • Industry engagement sessions


 Fall 2021

  • Draft technical studies materials released for review
  • Public information sessions and workshops
  • Industry engagement sessions


Winter 2022 

  • Draft studies and policies
  • Additional public and industry engagement


Spring 2022 

  • Additional public and industry engagement
  • April – Draft materials released to public for review
    • DC Background Study and Bylaw
    • CBC Strategy and Bylaw
    • Parkland Strategy, Official Plan Amendment and Bylaw
  • April to June – additional public and industry engagement sessions

June 20, 2022

June 24, 2022

  • Development Charges Materials Released – Revised bylaw and DC Study Addendum – available on this website under “Materials for Public Input”

July 12, 2022

  • Public meetings for Development Charges (Bylaw and Background Study) and Parkland (Official Plan Amendment)
  • Reports and bylaws for development charges, community benefits charges and alternative parkland dedication presented to Executive Committee

July 19/20, 2022

  • Council Meeting
    • Seeking approval of revised By-laws
    • Enactment of DC By-law

August 15, 2022

  • Council Meeting
    • Enactment of CBC and Alternative Parkland Dedication By-laws
    • DC By-law comes into effect