But there's little clarity on whether the Liberals will slash municipal development charges in half as promised during the election
Federal Housing minister Gregor Robertson sidestepped a direct commitment to the Liberal government’s election pledge to halve municipal development charges, even as Ottawa announced hundreds of millions of dollars in funding for Toronto’s infrastructure and affordable housing.
“Development charges are a significant challenge for the cost of building across Canada, and that's why we made a commitment to reduce those charges,” Robertson said during a Toronto press conference yesterday.
“We initially were looking at 50% reduction in partnership with provinces and territories. We're working through that process now across the country.”
Pressed on whether the government would follow through on its campaign promise, Robertson pointed to ongoing negotiations and hinted at more details in the upcoming federal budget, set for November 4.
“Certainly you’ll see some forward movement here this fall—the budget is November 4—and I’m anticipating some next steps related to the budget. We’re really focused on bringing the cost of building down, that’s the goal here,” he said.
Rising development charges are adding tens of thousands to the price of new homes and making ownership harder for many, said Rick Kedzior, president of the Ontario Real Estate Association (OREA).
On average, these fees can tack on as much as $135,000 to a new home’s price. While meant to fund infrastructure like roads and water systems, Kedzior said municipalities are increasingly using them for general revenue, with buyers footing the bill.
OREA’s survey found 75% of people strongly support cutting municipal development charges, and 72% would back a provincial cap on the fees.
Infrastructure funding to unlock new homes
The minister’s comments came as Ottawa committed up to $283 million through the Canada Housing Infrastructure Fund to upgrade Toronto’s Black Creek sewer system, with the city contributing $425 million.
The project, which has been in the works for years, is expected to expand capacity for an additional 63,000 homes in the York-South Weston area, where development had been capped due to infrastructure constraints.
Toronto Mayor Olivia Chow, who joined Robertson at the announcement, emphasized the impact on both housing and climate resilience.
“We’ve been talking about it for a long time, and finally today, this project will finally expand the capacity, start the construction, protect homes, schools and small businesses from the impact of extreme weather,” Chow said.
“It will also keep our western waterfront beaches clean after major storms.”
The event also marked the launch of the first project under Build Canada Homes, the federal government’s new affordable housing agency.
The Arbo Downsview development will add 540 units, at least 40% of which will be affordable housing, with a call out this week for developers using factory-built technologies.
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