Development charges across the GTA have increased 176 percent since 2011, and these charges are being disproportionately passed onto the next generation. The result is fewer homes being built and talent that continues to be priced out of the region. At the same time, municipalities are struggling to fund the infrastructure necessary to build much needed housing. Over the next decade they must manage 250 to 290 billion dollars in infrastructure needs, including more than 100 billion dollars tied directly to population growth. Current federal and provincial transfers, combined with the 3.5 billion dollars collected annually through development charges, cover only a small share of what is required to support healthy growth.
To lower home prices, support builders, and modernize municipal finance the Board outlines 5 urgent reforms:
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Modernize the Development Charges Act to create a clear and stable framework that supports affordability and municipal fiscal health.
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Remove water and wastewater costs from development charges so that long lived assets are funded over their lifespan rather than paid upfront by a first time buyer. This could reduce charges in the GTA by 30 to 50 percent.
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Upload transit related development charges to senior governments to recognize transit as a regional public good.
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Expand municipal financing tools so cities have more ways to fund essential infrastructure.
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Rebuild federal and provincial infrastructure partnerships to restore the coordinated funding model that once enabled affordable growth in the region.
