Under the Development Charges Act, a municipality may impose a
development charge for developments that require certain kinds
of planning approvals, like a zoning by-law or a minor variance, or
if a permit must be issued under the Building Code Act, in
relation to a building or structure.
Also, the Development Charges Act makes certain services
associated with development ineligible services, i.e. these are
services for which a municipality cannot impose a development
Prior to the amendments, an ineligible service included
"the provision of waste services". The Act repealed that
provision, and the regulations now indicate that ineligible
services include landfill sites and services, and services for the
incineration of waste.
These amendments create an incentive for providing recycling
services, for which development charges can be levied, while
creating a disincentive to establish more landfills and
A major change is the way in which transit can now be funded
through development charges. Formerly, development charges could be
levied for general transit, but how much was based on
past service levels and was subject to a 10% reduction from the
actual capital costs calculated. The amendments now allow for
calculation of service costs based on future needs, rather than
past use levels, and no longer subject these costs to a 10%
These are important changes. They will allow municipalities to
properly fund transit expansion to meet projected and planned
levels of service required flowing from development.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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