WHEREAS Canada is in a housing crisis that is largely linked to a lack of supply relative to demand; and
WHEREAS the Housing Innovation Task Force identified costs imposed by the municipality as a major barrier to housing development; and
WHEREAS development charges are a major component of those costs; and
WHEREAS development charges are particularly prohibitive on developing certain typologies of housing, such as rooming houses, where development charges are levied on a per-room basis; and
WHEREAS cutting development charges would spur housing development, but without commensurate matching funds from higher orders of government, may lead to a significant infrastructure deficit; and
WHEREAS the City of Ottawa’s development charges and other fees on development are generally lower than those of many other peer municipalities, including those who have recently lowered their development charges; and
WHEREAS the federal government has committed to reducing development charges while making municipalities whole in the process; and
WHEREAS on June 26, the Region of Peel cut development charges due to commitments from Municipal Affairs and Housing Minister Rob Flack to leverage the Building Ontario Fund to offset revenues lost from the development charge reduction; and
WHEREAS the Province, through Bill 17, has granted municipalities permission to reduce development charges for any reason without updating relevant background studies; and
WHEREAS the federal government’s Build Canada Homes agency seeks to leverage public lands for housing, particularly affordable housing; and
WHEREAS due to the amount of federal lands within the city, Ottawa is particularly well placed to explore this opportunity;
THEREFORE BE IT RESOLVED that Report Recommendation 3c in the Housing Innovation Task Force and Housing Acceleration Plan Report ASC2025-SI-SPO-002, and Action 22 in Document 2, be amended to read as follows:
Direct Staff that the payment of municipal development charge is due by the issuance of the first occupancy permit, limited to residential occupancies, and on an interest-free basis for 18 -months or until the Provincial Bill 17 regulations are implemented, whichever occurs first.
BE IT FURTHER RESOLVED that City staff be directed to bring forward a Report to Council with recommended amendments to reduce development charges if the City receives funding from higher orders of government, up to a 100% elimination on development charges; and
BE IT FURTHER RESOLVED that any reduction in Development Charges be conditional on a funding commitment equivalent to the reduction from higher orders of government so that the municipality remains fully whole with no reduction of investment into items on the City’s Development Charge Background Study; and
BE IT FURTHER RESOLVED that staff be directed to work directly with the Mayor’s Office to engage with Federal and Provincial partners on the above resolutions.