Development Charges

Development charges (DCs) are fees collected from builders and developers to fund the infrastructure needed for new developments. These charges help pay for services such as roads, water, sewer systems, parks, recreation facilities, libraries, and fire services. This ensures new developments cover these costs instead of existing taxpayers.

 

City development charges

On May 28, 2024, City Council approved the 2024 DC Background Study and three new DC By-laws, which took effect on July 8, 2024. These by-laws apply development charges to all lands in the City, except those exempt under the Development Charges Act (DCA) or Sections 8 to 11 of the 2024 DC By-laws.

The City and Region do not charge development fees for water or wastewater management in areas without these services (outside the urban area). 

On July 4, 2024, a notice of appeal of the City’s 2024 DC by-laws was received from the Niagara Home Builders’ Association (NHBA). The appeal was reviewed by staff, legal counsel, external consultants, and the Ontario Land Tribunal (OLT), and a settlement was reached with an order of resolution being issued on January 8, 2026, by the OLT.  

The order amends the 2024 DC Background Study and 2024 Development Charges By-law 2024-053 to reduce residential DC rates by 7% based on revised assumptions within the Study. An amended 2024 DC Background Study prepared by Hemson Consulting Ltd. and an amended Development Charges By-law 2024-053 were approved by Council on February 10, 2026, and the reduced DC rates were approved by way of report CS-2026-07. 

The DCA stipulates that repeal or amendment of a DC by-law by the OLT shall be deemed to have come into force on the day the by-law came into force. The amended DC by-law and reduced DC rates will have a retroactive effective date of July 8, 2024. 

The City DCs are updated on September 1st each year, following the most recent annual change in the Statistics Canada Quarterly, Construction Price Statistics (catalogue #62-007).

The City’s 2025 DCs take effect September 1, 2025, and are outlined in the City’s 2024 DC by-laws.

Residential rates by unit type:

Service Single & Semi Detached Rows & Other Multiples Apartments Special Care/Special Need Dwellings
General Government $847 $584 $421 $257
Library Services $1,065 $734 $528 $323
Fire Protection $1,421 $979 $705 $431
Parks & Recreation $7,330 $5,047 $3,637 $2,222
Services Related to Highways: Public Works & Fleet $1,254 $863 $622 $380
Services Related to Highways: Roads & Related $7,853 $5,408 $3,896 $2,381
Subtotal City-Wide Services $19,770 $13,615 $9,809 $5,994
Water $6,107 $4,206 $3,031 $1,851
Sanitary Sewer $11,284 $7,771 $5,598 $3,421
Storm Water Management $201 $138 $100 $60
Subtotal Urban Area Services $17,592 $12,115 $8,729 $5,332
Total Charge Per Unit $37,362 $25,730 $18,538 $11,326

Residential rates by unit type:

Service Type Single & Semi Detached Rows & Other Multiples Apartments Special Care/Special Need Dwellings
City-Wide Services $19,770 $13,615 $9,809 $5,994
Urban Area Services $17,592 $12,115 $8,729 $5,332
Total Charge Per Unit $37,362 $25,730 $18,538 $11,326

The City’s 2025 DCs take effect September 1, 2025 and are outlined in the City’s 2024 DC by-laws.

Service Non-Residential
$/Square Meter		 Non-Residential
$/Square Foot
General Government $4.64 $0.44
Library Services $0.00 $0.00
Fire Protection $7.79 $0.73
Parks & Recreation $0.00 $0.00

Services Related to Highways: Public Works & Fleet

 $6.89 $0.64
Services Related to Highways: Roads & Related $43.10 $4.00
Subtotal City-Wide Services $62.42 $5.81
Water $28.32 $2.63
Sanitary Sewer $53.65 $4.99
Storm Water Management $1.10 $0.10
Subtotal Urban Area Services $83.07 $7.72
Total Charge $145.49 $13.53

Service

 Non-Residential
$/Square Meter		 Non-Residential
$/Square Foot
City-Wide Services $62.42 $5.81
Urban Area Services $83.07 $7.72
Total Charge $145.49 $13.53

The City’s 2024 DCs took effect July 8, 2024, and are outlined in the City’s 2024 DC by-laws.

Residential rates by unit type:

Service Single & Semi Detached Rows & Other Multiples Apartments Special Care/Need Dwellings
General Government $815 $562 $405 $247
Library Services $1,025 $706 $508 $311
Fire Protection $1,368 $942 $679 $415
Parks & Recreation $7,055 $4,858 $3,500 $2,139
Services Related to Highways: Public Works & Fleet $1,207 $831 $599 $366
Services Related to Highways:  Roads & Related $7,558 $5,205 $3,750 $2,292
City-Wide Services Subtotal $19,028 $13,104 $9,441 $5,770
Water $5,878 $4,048 $2,917 $1,782
Sanitary Sewer $10,860 $7,479 $5,388 $3,293
Storm Water Management $193 $133 $96 $58
Urban Area Services Subtotal $16,931 $11,660 $8,401 $5,133
Total Charge Per Unit $35,959 $24,764 $17,842 $10,903

The City’s 2024 DCs took effect July 8, 2024, and are outlined in the City’s 2024 DC by-laws.

Service $/Square Meter $/Square Foot
General Government $4.47 $0.42
Library Services $0.00 $0.00
Fire Protection $7.50 $0.70
Parks & Recreation $0.00 $0.00

Services Related to Highways: Public Works & Fleet

 $6.63 $0.62
Services Related to Highways:Roads & Related $41.48 $3.85
City-Wide Services Subtotal $60.08 $5.59
Water $27.26 $2.53
Sanitary Sewer $51.64 $4.80
Storm Water Management $1.06 $0.10
Urban Area Services Subtotal $79.96 $7.43
Total Charge Per SQM/SQF $140.04 $13.02

When the DC takes effect

Section 26.2 of the Development Charges Act (DCA) “Freezes” development charges at the rate in effect on:

  • The day of an accepted application for a site plan agreement
  • If there is no such application, the day of an accepted application for a zoning by-law amendment
  • Or if neither of these applications has been made, the charge will continue to be determined at the time of the first building permit issuance

By way of Bill 185, Cutting Red Tape to Build More Homes Act, 2024, which received Royal Assent on June 6, 2024, development charges will be frozen only if a permit is issued within 18 months of the approval of the site plan agreement or zoning by-law amendment and will include interest.

Timing of payment

Development charges are due upon the issuance of the first building permit, except for non-rental residential, rental and institutional developments.  

Non-rental residential development charges are due upon the earlier of: 

  1. The day a permit is used under the Building Code Act, 1992 authorizing occupation of a building; and
  2. The day the building is first occupied

Rental and institutional developments: Installments and interest

Development charges for rental and institutional developments are payable in equal annual installments beginning on the earlier of the date of the issuance of a permit under the Building Code Act, 1992 authorizing occupation of the building and the date the building is first occupied, and continuing on the five anniversaries of that date.  

As a result of Bill 17 legislative changes, interest is no longer applicable on installments past November 2, 2025 and therefore, installments commencing after November 2, 2025, will not be subject to installment interest.

Furthermore, Bill 17 no longer requires an acknowledgement letter to be signed to pay DC’s over installment for rental and institutional developments.  

Bill 17 also now permits rental and institutional developers to voluntarily choose to pay any portion of their outstanding DCs owed early, at any point, without the need for a signed agreement.  

Interest and missed payments

  • The interest rate is 5%. The Development Charges Act sets the maximum rate at prime plus 1%.
  • The fee for a missed installment payment is $550 (no HST).

Development Charge By-laws remain in effect for 10 years unless otherwise amended.

Document Key Dates Description
Council Report CS-2026-07 February 10, 2026 Approves the 2024 Development Charge By-law & 2024 DC Background Study amendments
By-law 2024-053
  • May 28, 2024: By-law passed
  • February 10, 2026: Schedule A amended
 Establish development charges for general services such as general government, library services, fire protection, parks & recreation, and public works and fleet.
By-law 2024-054
  • May 28, 2024: By-law passed
  • February 10, 2026: Schedule A amended
 Establish development charges related to a highway: roads and related.
By-law 2024-055
  • May 28, 2024: By-law passed
  • February 10, 2026: Schedule A amended
 Establish development charges for water, sanitary sewer, and storm water management.
Notice of Passing DC By-laws June 12, 2024 The official notice that the 2024 Development Charges By-laws were passed.
By-law 2019-69 June 4, 2019 Provides development charge rates for rates frozen at rates in effect before the 2024 by-law.

Development charges study

The City is required to update its development charges every ten years. This background study provides the basis for the 2024 development charges by-law.

The 2019 background provides the basis for the 2019 development charges by-law.

List of exemptions

The Development Charges Act (DCA) provides exemptions for DCs as follows:

  • City, Regional, and School Board Lands and Buildings (DCA Section 3)
  • Additional Residential Units in Existing Rental Residential Buildings (DCA Section 3.1)
  • Additional (Secondary) Residential Units in Existing Houses (DCA Section 3.2 & 3.3)
  • Industrial (DCA Section 4)
  • Affordable and Attainable Residential Units (DCA Section 4.1)
  • Non-Profit Housing Development (DCA Section 4.2)
  • Inclusionary Zoning Residential Units (DCA Section 4.3)

City By-laws provide additional exemptions for DCs as follows:

  • Lands and buildings used for agricultural use [By-law Section 8.2a]
  • Lands and buildings used or intended to be used as municipal housing project facilities [By-law Section 8.2b]
  • Lands and buildings used for affordable housing projects that receive funding through an agreement with Niagara Regional Housing [By-law Section 8.2c]
  • Lands and buildings owned, used, and occupied by a charitable institution [By-law Section 8.4d]
  • Gas station canopies [By-law Section 8.2e]
  • Cemeteries, mausoleums, and columbariums [By-law Section 8.2f]
  • Places of worship [By-law Section 8.2g]
  • Parking structures associated with residential and/or non-residential use [By-law Section 8.2h]

Community Improvement Plan (CIP) grant program

The City exempts DCs for projects within the CIP boundary areas and offers additional exemptions under Policy #700.41.

Visit our CIP webpage for information on approved plans.

Industrial exemptions

The City fully exempts Industrial developments from DCs under Policy #700.40.

Demolition and conversion reductions

  • Demolitions: The City reduces DCs for demolitions following Section 12 of all 2024 DC By-laws
  • Conversions: The City reduces DCs for conversions following Section 13 of all 2024 DC By-laws

Rental housing development discounts

The DCs payable for rental housing development are discounted based on the number of bedrooms in each unit, as follows [DCA Section 26.2]:

  • 3+ bedrooms – 25% discount
  • 2 bedrooms – 20% discount
  • 1 bedroom – 15% discount

The Treasurer for the City will present, before Council each year, a financial statement relating to the development charges by-laws and its reserve funds. The statement will include, for each reserve fund, a description of the service, opening and closing balances, details of any credit transactions, details of any borrowing from the reserve fund that may have occurred, the amount spent on growth-related projects, the portion of each project that is funded from the reserve fund and the portion funded from other sources of financing.

View the statements:

Other agency development charges

These development charges are collected by the City on behalf of other agencies.

Education Development Charges (EDCS) are set by the Niagara Catholic District School Board (NCDSB). Please visit the Niagara Catholic District School Board website for information pertaining to NCDSB EDCS. 

District School Board of Niagara (DSBN) EDCS are set by the District School Board of Niagara. Please visit the District School Board of Niagara website for information pertaining to DSBN EDCS. 

Visit the Niagara Region Development Charges webpage for information on Regional DC fees that may apply.

Any applicable Regional Development fees are payable to the Niagara Region. The City will collect and remit this separate payment on your behalf. These fees are payable at the same time you pay your City DCs prior to permit issuance.

Resources

Contact Us

City of Niagara Falls
4310 Queen Street
P.O. Box 1023
Niagara Falls, ON L2E 6X5
Canada
905-356-7521
service@niagarafalls.ca