The federal Housing Minister Gregor Robertson’s office reiterated the Liberal government’s commitment to halving municipal development charges, despite the minister’s vague response during a recent press conference in Toronto. When asked about reducing fees to lower homebuilding costs, Robertson acknowledged the challenge posed by development charges across Canada and emphasized the government’s pledge to cut those charges by 50% in collaboration with provinces and territories. He indicated that further details would be disclosed in the upcoming federal budget on November 4.
Robertson’s press secretary, Renee Proctor, later confirmed that the commitment to reducing development charges by half for multi-unit residential housing was still active. The Liberals’ election platform earlier promised a five-year reduction in development charges by working with provinces and territories to compensate for the foregone revenue. The platform highlighted upcoming federal investments in infrastructure like water and wastewater systems to offset the revenue shortfall.
Development charges, which builders pay to cover infrastructure costs related to new housing, have become a significant source of funding for municipalities in recent years. Critics argue that these escalating fees contribute to higher building costs and hinder efforts to address the housing supply shortage in Canada.
During the press conference, Toronto Mayor Olivia Chow emphasized the importance of addressing financing barriers that prevent builders from starting projects. She mentioned ongoing discussions with Ottawa about adjusting development charges to reduce building costs. Robertson echoed the focus on lowering construction expenses, particularly in cities like Toronto and Vancouver, where development charges are closely tied to infrastructure costs.
Proctor highlighted Robertson’s announcement at the Union of B.C. Municipalities convention about Ottawa’s plans to establish a program that balances reducing development charges with ensuring local governments invest in housing infrastructure. Robertson acknowledged the complexities of addressing building costs due to varying approaches to development fees by municipalities nationwide.
In Toronto, Robertson unveiled federal funding for sewer infrastructure and the first housing project under the new affordable housing agency, Build Canada Homes. The federal government will contribute up to $283 million from the Canada Housing Infrastructure Fund to upgrade the Black Creek sewer system, complemented by $425 million in city funding. The sewer upgrades are expected to accommodate an additional 63,000 homes.
The inaugural Build Canada Homes project at Arbo Downsview will add 540 units, with a minimum of 40% designated as affordable housing. The agency will soon release a request for qualifications seeking developers capable of utilizing factory-built housing technologies to deliver the project.