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.
For a comprehensive overview of the City’s development charges, please see the brochure.
Background
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).
Annual development charge increase
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).
2024 City Development charges: residential rates
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 | $1,138 | $784 | $565 | $345 |
| Fire Protection | $1,368 | $942 | $679 | $415 |
| Parks & Recreation | $9,474 | $6,524 | $4,701 | $2,873 |
| 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 | $21,560 | $14,848 | $10,699 | $6,538 |
| 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 | $38,491 | $26,508 | $19,100 | $11,671 |
2024 City development charges: non-residential rates
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 |
Effective date, timing of payment, and interest
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 rental and institutional developments.
Rental and institutional developments: Installments and interest
Development charges for institutional and rental developments are to be paid over 6 equal installments, plus interest, starting on occupancy (1st payment) and every year thereafter for 5 more payments.
- To be eligible for an installment payment plan an acknowledgement letter must be submitted to the city 20 days prior to the issuance of the first building permit. The form is located here: Acknowledgement Letter (Section 26.1 of the DCA)
Alternatively, institutional or rental developers can opt out of payment of development charges over installment by submitting an early payment agreement form to the City. The form is located here: Early Payment Agreement (section 27 of the DCA)
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 charges by-law and study
Development Charge By-laws remain in effect for 10 years unless otherwise amended.
| By-law Number | Key Dates | By-law Description |
|---|
| By-law 2024-053 | Passed: May 28, 2024 | Establish development charges for general services such as general government, library services, fire protection, parks & recreation, and public works & fleet. |
| By-law 2024-054 | Passed: May 28, 2024 | Establish development charges related to a highway: roads and related. |
| By-law 2024-055 | Passed: May 28, 2024 | 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.
Exemptions and reductions
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
Treasurer's statement
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:
Educational development charges
View the Education Development Charges on the Niagara Catholic District School Board website.
Any applicable Education DCs are payable to the City prior to permit issuance. The City will collect and remit the fee to the School Board.
Regional development charges
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
