The federal Housing Minister Gregor Robertson’s office reiterated the Liberal government’s commitment to reducing municipal development charges by half, following the minister’s vague statements during a press conference in Toronto. When questioned about the government’s plans to cut fees and lower homebuilding costs, Robertson acknowledged the challenges posed by development charges nationwide. He mentioned the government’s pledge to reduce these charges by 50% in collaboration with provinces and territories, with further details expected to be unveiled in the upcoming federal budget on Nov. 4.
Robertson’s press secretary, Renee Proctor, confirmed the government’s dedication to cutting development charges, emphasizing the mandate to swiftly lower costs and facilitate housing construction. The Liberals’ election platform included a promise to halve development charges over five years by working with provinces and territories to address revenue shortfalls. The platform highlighted upcoming federal investments in infrastructure as a means to compensate for the reduced income from development charges.
Development charges, typically paid by builders to cover new housing infrastructure costs, have increasingly become a significant revenue source for municipalities. Advocates argue that the escalating fees contribute to higher building costs and hinder efforts to address housing shortages in Canada. Toronto Mayor Olivia Chow expressed concerns over financing challenges hindering construction progress and mentioned ongoing discussions with Ottawa regarding potential adjustments to development charges to make building more affordable.
During a recent event, Robertson stressed the importance of reducing building costs by addressing infrastructure expenses, particularly in cities like Toronto and Vancouver. He previously outlined plans to introduce measures to strike a balance between cutting development charges and ensuring local governments invest in housing infrastructure. The minister acknowledged the complexity of addressing building costs due to varying approaches to development fees across different municipalities.
In Toronto, Robertson announced federal funding for sewer infrastructure and the launch of the first housing project under the new affordable housing agency, Build Canada Homes. The government will allocate funds for upgrading the Black Creek sewer system, with additional financial support from the city to accommodate housing expansion. The initial Build Canada Homes project will add 540 units at Arbo Downsview, with a significant portion designated as affordable housing. Developers utilizing factory-built housing technologies will be invited to participate in the project through a forthcoming request for qualifications.