Development charges are levied on new and repurposed buildings by municipal governments. This is to recover some of the costs associated with servicing a building with roads, water, sewers, etc. However, these development charges will be reflected in the final price of a home, and higher development charges deter development and increase housing prices.

There is a housing crisis across Niagara and Ontario. The root of the problem is that supply has not kept pace with demand; any sustainable solution that delivers more affordable housing has to start with getting more housing built. Increased development charges will make homes less affordable, and when one municipality sets its charges notably higher than others, it’s a deterrent to build housing in that municipality when a developer can go to the next town and pay less. A lack of housing makes it difficult for the region to attract young workers and newcomers who will grow the workforce. Higher rents drive wages upwards as the cost of living increases, so this issue affects all businesses.

In 2024, the City of Niagara Falls voted to increase development charges between 123 and 133 per cent for residential development. The average charge for a single detached unit has gone from $17,000 to $38,000. Niagara Falls had already lost out on Housing Accelerator Fund money due to missing housing targets. The GNCC opposed these increases in partnership with the Niagara Association of REALTORS®, the Niagara Home Builders’ Association, and the Niagara Construction Association.

The Government of Ontario requires cities to waive development charges on affordable builds. The Association of Municipalities of Ontario (AMO) has estimated that municipalities will sustain a $5.1 billion loss in revenues over ten years as a result, meaning that either taxes will have to go up to compensate, or these developments just won’t take place due to lack of municipal funds for servicing.

The Province has promised a transitional funding program, but this is not permanent, limited in scope (not a dollar-for-dollar replacement), and municipalities have to apply for it and demonstrate that they suffered net revenue losses. The Government of Ontario provides funding through the Building Faster Fund, but it is offered retroactively to municipalities that hit housing targets.

The GNCC does not support large increases in development charges, and advocates for the Government of Ontario to take a larger role in funding development – especially affordable development – to assist cash-strapped municipalities. Funding streams need to be dependable and offered in advance of the municipal outlay, not retroactively. 

2024-ongoing