Development Charges Act, 1997, S.O. 1997, c. 27

• Jurisdiction: Ontario

Development Charges Act, 1997

S.O. 1997, CHAPTER 27

Consolidation Period: From June 8, 2023 to the e-Laws currency date.

Last amendment: 2023, c. 10, Sched. 3.

SOMMAIRE

PART I
DEFINITIONS

Definitions

1 In this Act,

“area municipality” means a lower-tier municipality; (“municipalité de secteur”)

“development” includes redevelopment; (“aménagement”)

“development charge by-law” means a by-law made under section 2; (“règlement de redevances d’aménagement”)

“front-ending agreement” means an agreement under section 44; (“accord initial”)

“local board” means a local board as defined in section 1 of the Municipal Affairs Act other than a board as defined in subsection 1 (1) of the Education Act. (“conseil local”)

“prescribed” means prescribed by the regulations; (“prescrit”)

“regulations” means the regulations made under this Act; (“règlements”)

“rental housing development” means development of a building or structure with four or more residential units all of which are intended for use as rented residential premises; (“aménagement de logements locatifs”)

“waste diversion services” means services related to waste management, but not including,

(a) landfill sites and services, and

(b) facilities and services for the incineration of waste. 1997, c. 27, s. 1; 2002, c. 17, Sched. F, Table; 2015, c. 26, s. 1; 2019, c. 9, Sched. 3, s. 1; 2022, c. 21, Sched. 3, s. 1.

Section Amendments with date in force (d/m/y)

2002, c. 17, Sched. F, Table - 01/01/2003

2015, c. 26, s. 1 - 01/01/2016

2019, c. 9, Sched. 3, s. 1 - 06/06/2019

2022, c. 21, Sched. 3, s. 1 - 28/11/2022

PART II
DEVELOPMENT CHARGES

Development Charges

Development charges

2 (1) The council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the by-law applies. 1997, c. 27, s. 2 (1).

What development can be charged for

(2) A development charge may be imposed only for development that requires,

(a) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act;

(b) the approval of a minor variance under section 45 of the Planning Act;

(c) a conveyance of land to which a by-law passed under subsection 50 (7) of the Planning Act applies;

(d) the approval of a plan of subdivision under section 51 of the Planning Act;

(e) a consent under section 53 of the Planning Act;

(f) the approval of a description under section 9 of the Condominium Act, 1998; or

(g) the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure. 1997, c. 27, s. 2 (2); 2015, c. 26, s. 2 (1); 2015, c. 28, Sched. 1, s. 148.

Same

(3) An action mentioned in clauses (2) (a) to (g) does not satisfy the requirements of subsection (2) if the only effect of the action is to permit the enlargement of an existing residential unit. 2022, c. 21, Sched. 3, s. 2 (1).

Exemption for residential units in existing rental residential buildings

(3.1) The creation of the greater of the following in an existing rental residential building, which contains four or more residential units, is exempt from development charges:

1. One residential unit.

2. 1 per cent of the existing residential units. 2022, c. 21, Sched. 3, s. 2 (1).

Exemption for residential units in existing houses

(3.2) The creation of any of the following is exempt from development charges:

1. A second residential unit in an existing detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the existing detached house, semi-detached house or rowhouse cumulatively contain no more than one residential unit.

2. A third residential unit in an existing detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the existing detached house, semi-detached house or rowhouse contains any residential units.

3. One residential unit in a building or structure ancillary to an existing detached house, semi-detached house or rowhouse on a parcel of land, if the existing detached house, semi-detached house or rowhouse contains no more than two residential units and no other building or structure ancillary to the existing detached house, semi-detached house or rowhouse contains any residential units. 2022, c. 21, Sched. 3, s. 2 (1); 2023, c. 10, Sched. 3, s. 1 (1).

Exemption for additional residential units in new residential buildings

(3.3) The creation of any of the following is exempt from development charges:

1. A second residential unit in a new detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the new detached house, semi-detached house or rowhouse cumulatively will contain no more than one residential unit.

2. A third residential unit in a new detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units.

3. One residential unit in a building or structure ancillary to a new detached house, semi-detached house or rowhouse on a parcel of land, if the new detached house, semi-detached house or rowhouse contains no more than two residential units and no other building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units. 2022, c. 21, Sched. 3, s. 2 (1); 2023, c. 10, Sched. 3, s. 1 (2).

What services can be charged for

(4) A development charge by-law may impose development charges to pay for increased capital costs required because of increased needs for the following services only:

1. Water supply services, including distribution and treatment services.

2. Waste water services, including sewers and treatment services.

3. Storm water drainage and control services.

4. Services related to a highway as defined in subsection 1 (1) of the Municipal Act, 2001 or subsection 3 (1) of the City of Toronto Act, 2006, as the case may be.

5. Electrical power services.

6. Toronto-York subway extension, as defined in subsection 5.1 (1).

6.1 Yonge North subway extension, as defined in subsection 5.1.1 (1).

7. Transit services other than the Toronto-York subway extension and the Yonge North subway extension.

8. Waste diversion services.

9. Policing services.

10. Fire protection services.

11. Ambulance services.

12. Services provided by a board within the meaning of the Public Libraries Act.

13. Services related to long-term care.

14. Parks and recreation services, but not the acquisition of land for parks.

15. Services related to public health.

16. Child care and early years programs and services within the meaning of Part VI of the Child Care and Early Years Act, 2014 and any related services.

17. Repealed: 2022, c. 21, Sched. 3, s. 2 (2).

18. Services related to proceedings under the Provincial Offences Act, including by-law enforcement services and municipally administered court services.

19. Services related to emergency preparedness.

20. Services related to airports, but only in the Regional Municipality of Waterloo.

21. Additional services as prescribed. 2020, c. 18, Sched. 3, s. 1 (2); 2021, c. 34, Sched. 7, s. 1; 2022, c. 21, Sched. 3, s. 2 (2).

Deemed amendment of by-law

(4.0.1) If a by-law under this section imposes development charges to pay for increased capital costs required because of increased needs for housing services, the by-law is deemed to be amended to be consistent with subsection (4) as it reads on the day subsection 2 (2) of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 2 (3).

Development charge — relationship to community benefits charge

(4.1) For greater certainty, nothing in this Act prevents a community benefits charge under section 37 of the Planning Act from being imposed with respect to the services listed in subsection (4), provided that the capital costs that are intended to be funded by the community benefits charge are not capital costs that are intended to be funded under a development charge by-law. 2020, c. 18, Sched. 3, s. 1 (2).

Local services

(5) A development charge by-law may not impose development charges with respect to local services described in clauses 59 (2) (a) and (b). 1997, c. 27, s. 2 (5).

Services can be outside the municipality

(6) A development charge by-law may impose development charges with respect to services that are provided outside the municipality. 1997, c. 27, s. 2 (6).

Application of by-law

(7) A development charge by-law may apply to the entire municipality or only part of it. 1997, c. 27, s. 2 (7).

Multiple by-laws allowed

(8) More than one development charge by-law may apply to the same area. 1997, c. 27, s. 2 (8).

Area rating, prescribed areas and services

(9) Despite subsection (7), a development charge by-law dealing with an area that is prescribed for the purposes of this subsection and with a service that is prescribed with respect to the prescribed area for the purposes of this subsection shall apply only to the prescribed area and not to any other part of the municipality. 2015, c. 26, s. 2 (3).

Transition

(10) Subsection (9) does not apply to a development charge by-law that was passed before the relevant area and the relevant service were prescribed for the purposes of that subsection. 2015, c. 26, s. 2 (3).

Area rating, prescribed municipalities, services and criteria

(11) The following rules apply to a municipality that is...