Housing Minister Gregor Robertson’s office reaffirms the Liberal government’s commitment to reducing municipal development charges by half. Robertson, speaking at a news conference in Toronto, addressed the importance of lowering homebuilding costs by tackling the challenge of development fees nationwide. He hinted at a 50% reduction in partnership with provinces and territories, with further details expected in the upcoming federal budget on Nov. 4.
Robertson’s press secretary, Renee Proctor, confirmed that the pledge to cut development charges remains in effect, emphasizing the mandate from Canadians to swiftly reduce costs and facilitate housing construction. The Liberals’ election platform outlined plans to work with provinces and territories to halve development charges over five years, compensating for lost revenue through federal investments in essential infrastructure.
Development charges, which builders pay to cover new housing infrastructure costs, have been steadily increasing and are viewed as hindering efforts to bridge the housing supply gap in Canada. Toronto Mayor Olivia Chow echoed the need to address financing obstacles preventing builders from starting projects, underscoring discussions with Ottawa on adjusting development charges to lower construction costs.
Robertson emphasized the connection between infrastructure expenses and development charges, particularly in cities like Toronto and Vancouver. He highlighted discussions at the Union of B.C. Municipalities convention regarding a forthcoming program to balance reducing charges while ensuring local governments invest in housing infrastructure. The complexity of addressing building costs across municipalities, which vary in their approach to development fees, was also acknowledged.
During his Toronto visit, Robertson announced federal funding for sewer infrastructure and the launch of the first housing project under the Build Canada Homes agency. The government’s investment in Toronto’s Black Creek sewer system, alongside city funding, aims to support the construction of 63,000 homes. The initial Build Canada Homes project at Arbo Downsview will add 540 units, with a significant portion designated as affordable housing, utilizing factory-built housing technologies for efficient delivery.