Development Charge Refund Program

Program Requirements

All projects must demonstrate the minimum achievement of Tier 1 and 2 levels of the Toronto Green Standard in order to be eligible for the Development Charge Refund program. Tier 1 is verified through Site Plan Approvals. Tier 2, 3 and 4 are third-party verified and certified by a Registered Project Evaluator with the City of Toronto.

Applicants must apply to the program by completing the Development Charge Refund Application and Estimate forms and submitting the forms to Environmental Planning for review and acceptance prior to the issuance of the Notice of Approval Conditions (NOAC) as part of site plan approvals. To discuss your project and obtain a copy of the most current Development Charge Refund Application forms, email sustainablecity@toronto.ca.

NEW: Section 415(7) of the 2022 Development Charges Bylaw includes a deadline for applications made to the DC Refund program under the prior TGS version in effect. A partial refund on development charges may be given for meeting the Tier 2, Tier 3 or Tier 4 requirements of the prior version of the Toronto Green Standard Program, only where such application that has been approved by the City as having met the program eligibility requirements, within 1 year of the in effect date of the most recent Council approved Toronto Green Standard. This means that applications made to the program under TGS Version 3 for example, must be made and accepted by Environmental Planning by May 2023, one year after TGS Version 4 came into effect for new planning applications.

TGS Version 3 and 4 Projects

Tier 2, TGS Version 3 requires the completion of all Core categories plus the selection of three (3) Optional performance measures selected from any category. Tier 3 and 4 performance measures are exchangeable and replace the same Tier 2 performance measures. Projects must select three (3) measures in total from Tier 3 or 4.

For projects under TGS Version 4, all Tier 2 or 3 requirements are Core and must be met and third-party verified.

Complete the applicable High Performance Checklist to ensure all performance measures are being met and documented for third party review. Third party review occurs at two stages: 50% construction drawings stage and Occupancy stage, using a combination of issued for construction drawings and reports, declaration templates and on-site inspections. The third party evaluator works with the design team to document higher levels of TGS performance compliance for the DC Refund.

Program Terms, Conditions & Eligibility Criteria

The authority for the Toronto Green Standard Development Charge (DC) Refund program is provided by the City of Toronto Council adopted DC By-law in effect. The City’s DC rates and the Tier 2 cap may be amended from time to time due to an amendment to the DC Bylaw.

Contact must be made with the Environmental Planning Office of the City Planning Division to qualify projects for eligibility to enroll in the DC Refund program as early as possible and prior to issuance of the Notice of Approval Conditions (NOAC) for site plan approval (SPA).

This application to enroll in the Toronto Green Standard, Tier 2, DC Refund program is valid for a period of 1 year from the date of the issuance of the Notice of Approval Conditions (NOAC) from the City Planning Division. If all required Development Charges are not paid and the applicable Building Permit is not issued within 1 year from the date of such issuance of the NOAC, this application is no longer valid.

Eligibility Criteria for the Development Charge (DC) Refund:

• Site plan control applications must be received on or after May 1, 2018.
• DC Refund application and estimate forms must be submitted and accepted by the Environmental Planning Office prior to NOAC.
• Site plan approval (SPA) must include demonstrated achievement of Tier 1, the required Toronto Green Standard.
• Verification that all Tier 2, 3 or 4 performance measures have been met, must be conducted by a third party project evaluator, registered with the City of Toronto following the City’s verification protocol.
• Third party project evaluators must be hired and retained by the owner at the sole expense of the owner by 50% construction documentation stage.
• A third party project evaluator must declare no conflict of interest, whether direct or indirect, that could affect their ability to objectively review the project being verified by completing the Verification Submittal Checklist included with the Verification Report.
• The Verification Report must be completed and submitted to the satisfaction of the Chief Planner, Executive Director, City Planning Division within five (5) years from the date of issuance of the first above-grade Building Permit for the proposed development.

Application and Refund Process:

• To obtain a refund, the owner, authorized agent or the third party project evaluator must submit one final electronic copy of the completed Verification Submittal Checklist and the Verification Report to the Environmental Planning office.
• The development charge refund is issued to the person or corporation who made the original development charge payment, unless written authorization is received from the owner directing the payment of the refund to another party.
• Recent amendments to the Development Charges Act allow development charges to be paid in instalments over a 5 or 20 year period commencing from the date of first occupancy of the development. If the applicant intends to pay its applicable development charges in instalments, the applicant will need to notify the Environmental Planning Office so that a refund payment schedule can be developed that establishes the timing of refunds in relation to the payment of any DC instalment payments.
• This policy does not exempt the owner from obtaining all necessary approvals and permits required for the development.
• The refund amount is calculated based on the Tier 2, 3 and 4 cap rates in accordance with the DC Bylaw and rates in effect on the date of processing the refund.

Payment of Fees:

Payment of fees for third party verification is made directly to the third party project evaluators selected by the applicant. The City of Toronto takes no responsibility for the level of service provided.

Registered Project Evaluators

All city-owned new facilities greater than 100m² GFA and Tier 2, 3 and 4 private development projects are third-party verified during construction. Performance verification is the role of third-party project evaluators, registered with the City of Toronto. Evaluators must declare no conflict of interest, whether direct or indirect, that could affect their ability to objectively review the project being verified.

The project evaluator must be retained on the project by 50 percent construction documentation stage by the project owner. Verification is a two-stage process that includes: a review of the construction drawings and specifications and a site inspection at Occupancy stage following the City’s Verification Protocol. The Verification Report is submitted to the satisfaction of City Planning, preferably with 3 to 6 months of occupancy and within 5 years from the date that DCs were payable to the City. If the report is deemed satisfactory, the applicable development charge refund will be issued for projects that pay DCs.

Contact Environmental Planning in the City Planning Division for more guidance by emailing: sustainablecity@toronto.ca.

Registered Tier 2 Project Evaluators

EQ Building Performance Inc.
Mayan Reicher
416-645-1186
mreicher@eqbuilding.com
www.eqbuilding.com

MCW Consultants Ltd.
Paul Erlichman
416-598-2920 ext:550
perlichman@mcw.com
www.mcw.com

Morrison Hershfield Ltd.
Lauren Spudowski
416-499-3110 ext:101 1462
lspudowski@morrisonhershfield.com
www.morrisonhershfield.com

WSP Golder.
Tofayel Hussain
416-646-0723
Tofayel.Hussain@wsp.com
www.wsp.com

Development Charge (DC) Refund Program Steps & Procedures

Step 1: Pre-Application Consultation

Discuss your intent to pursue Tier 2 or higher levels of sustainable performance and the Development Charge Refund Program with the community planner on the file and contact the Environmental Planning Office directly, that administers the DC Refund program at: sustainablecity@toronto.ca. Indicate Tier 2, 3 or 4 on the TGS Checklist submitted with your planning application. The Environmental Planning office reviews Tier 2, 3 or 4 planning submissions and comments on Tier 1 compliance to qualify the project to enroll into the program.

Step 2: Program Documentation

Address any Tier 1 compliance requirements in your site plan application and update the TGS Checklist and Statistics. Complete the applicable High Performance Checklist for TGS Version 4 Tier 2, 3 or 4 projects in full and submit it with the application to enroll into the incentive program in Step 3. Discuss any technical or program questions with Environmental Planning.

Step 3: Apply to Enroll

Prior to the issuance of the Notice of Approval Conditions (NOAC), complete the Development Charge Refund Application and Estimate forms, and submit the forms to Environmental Planning for review and qualification to enroll in the program. Environmental Planning will issue written correspondence advising the applicant of enrolment. For a copy of the most current Development Charge Refund Application Form and Estimate Form email sustainablecity@toronto.ca.

Step 4: Third Party Evaluation

Select and retain a third party consultant/evaluator from the Project Evaluator List by 50% construction drawings documentation stage. The retained consultant will provide guidance to achieving certification following a two-stage verification review. They will complete the City’s Verification Report templates and submit the completed report to Environmental Planning within five (5) years of the date that DCs were payable to the City. The Tier 2 Verification Report includes the third party reviewer’s supplementary photos, plans, reports and declaration forms in support of Tier 2 compliance and recommends certification to the City.

Step 5: Issuance of a Refund

Environmental Planning reviews the Verification Report submission. Once all proof of compliance documentation is determined to be satisfactory, a request for refund is issued and processed and a refund cheque is awarded to the applicant. The refund amount is calculated based on the Tier 2, 3 and 4 cap rates in accordance with the DC Bylaw and rates in effect on the date of processing the refund.

Step 6: Project Profile and Recognition

Environmental Planning will contact the applicant or their agent to request a Profile to post on the City’s website to showcase the project’s achievements. A brushed plaque template is available to certified projects upon request.