Development Charges Act, 1997

PART I DEFINITIONS

1 In this Act, “area municipality” means a lower-tier municipality; (“municipalité de secteur”) “development” includes redevelopment; (“aménagement”) “development charge by-law” means a by-law made under section 2; (“règlement de redevances d’aménagement”) “front-ending agreement” means an agreement under section 44; (“accord initial”) “local board” means a local board as defined in section 1 of the Municipal Affairs Act other than a board as defined in subsection 1 (1) of the Education Act. (“conseil local”) “prescribed” means prescribed by the regulations; (“prescrit”) “regulations” means the regulations made under this Act; (“règlements”) “rental housing development” means development of a building or structure with four or more residential units all of which are intended for use as rented residential premises; (“aménagement de logements locatifs”) “waste diversion services” means ser…

PART II DEVELOPMENT CHARGES

Development Charges

2 (1) The council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the by-law applies. 1997, c. 27, s. 2 (1). What development can be charged for (2) A development charge may be imposed only for development that requires, (a) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; (b) the approval of a minor variance under section 45 of the Planning Act; (c) a conveyance of land to which a by-law passed under subsection 50 (7) of the Planning Act applies; (d) the approval of a plan of subdivision under section 51 of the Planning Act; (e) a consent under section 53 of the Planning Act; (f) the approval of a description under section 9 of the Condominium Act, 1998; or (g) the issuing of a …

3 No land, except land owned by and used for the purposes of a municipality or a board as defined in subsection 1 (1) of the Education Act, is exempt from a development charge by reason only that it is exempt from taxation under section 3 of the Assessment Act. 1997, c. 27, s. 3.

4 (1) If a development includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that is payable in respect of the enlargement is determined in accordance with this section. 1997, c. 27, s. 4 (1). Enlargement 50 per cent or less (2) If the gross floor area is enlarged by 50 per cent or less, the amount of the development charge in respect of the enlargement is zero. 1997, c. 27, s. 4 (2). Enlargement more than 50 per cent (3) If the gross floor area is enlarged by more than 50 per cent the amount of the development charge in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: 1. Determine the amount by which the enlargement exceeds 50 per cent of the gross floor area before the enlargement. 2. Divide the amount determined under p…

4.1 (1) In this section, “affordable residential unit” means a residential unit that meets the criteria set out in subsection (2) or (3); (“unité d’habitation abordable”) “Affordable Residential Units bulletin” means the bulletin entitled the “Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin”, as it is amended from time to time, that is published by the Minister of Municipal Affairs and Housing on a website of the Government of Ontario; (“bulletin relatif aux unités d’habitation abordables”) “attainable residential unit” means a residential unit that meets the criteria set out in subsection (4). (“unité d’habitation à la portée du revenu”) 2022, c. 21, Sched. 3, s. 3 ; 2023, c. 18, Sched. 1, s. 1 (1). Affordable residential unit, rented (2) A residential unit intended for use as a rented residential premises shall be considered to be an affordab…

4.2 (1) In this section, “non-profit housing development” means the development of a building or structure intended for use as a residential premises and developed by, (a) a corporation to which the Not-for-Profit Corporations Act, 2010 applies, that is in good standing under that Act and whose primary object is to provide housing, (b) a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that Act and whose primary object is to provide housing, or (c) a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act. 2022, c. 21, Sched. 3, s. 4. Exemption (2) A non-profit housing development is exempt from development charges. 2022, c. 21, Sched. 3, s. 4. Transition (3) Subsection (2) does not apply with respect to a development charge that is payable before the day section 4 of Sch…

4.3 (1) The creation of a residential unit described in subsection (2) is exempt from development charges unless a development charge is payable with respect to the residential unit before the day section 4 of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 4. Application (2) Subsection (1) applies in respect of residential units that are affordable housing units required to be included in a development or redevelopment pursuant to a by-law passed under section 34 of the Planning Act to give effect to the policies described in subsection 16 (4) of that Act. 2022, c. 21, Sched. 3, s. 4. Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 4 - 28/11/2022

4.4 (1) The development of any part of a building or structure intended for use as a long-term care home, as defined in subsection 2 (1) of the Fixing Long-Term Care Home Act, 2021, is exempt from development charges. 2025, c. 9, Sched. 4, s. 1. Transition (2) Subsection (1) does not apply with respect to a development charge that is payable before the day section 1 of Schedule 4 to the Protect Ontario by Building Faster and Smarter Act, 2025 comes into force. 2025, c. 9, Sched. 4, s. 1. Same (3) For greater certainty, subsection (1) applies to future instalments that would have been payable in accordance with section 26.1 after the day section 1 of Schedule 4 to the Protect Ontario by Building Faster and Smarter Act, 2025 comes into force. 2025, c. 9, Sched. 4, s. 1. Section Amendments with date in force (d/m/y) 2025, c. 9, Sched. 4, s. 1 - 05/06/2025 Exemption for non-profit retirement…

4.5 (1) In this section, “non-profit retirement home development” means the development of a building or structure intended for use as a retirement home, as defined in subsection 2 (1) of the Retirement Homes Act, 2010, and developed by, (a) a corporation to which the Not-for-Profit Corporations Act, 2010 applies, that is in good standing under that Act, or (b) a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that Act. 2026, c. 8, Sched. 3, s. 1. Exemption (2) A non-profit retirement home development is exempt from development charges. 2026, c. 8, Sched. 3, s. 1. Transition (3) Subsection (2) does not apply with respect to a development charge that is payable before the day section 1 of Schedule 3 to the Building Homes and Improving Transportation Infrastructure Act, 2026 comes into force. 2026, c. 8, Sched. 3…

5 (1) The following is the method that must be used, in developing a development charge by-law, to determine the development charges that may be imposed: 1. The anticipated amount, type and location of development, for which development charges can be imposed, must be estimated. 2. The increase in the need for service attributable to the anticipated development must be estimated for each service to which the development charge by-law would relate. 3. The estimate under paragraph 2 may include an increase in need only if the council of the municipality has indicated that it intends to ensure that such an increase in need will be met. The determination as to whether a council has indicated such an intention may be governed by the regulations. 4. The estimate under paragraph 2 must not include an increase that would result in the level of service exceeding the average level of that service …

5.1 (1) In this section, “Toronto-York subway extension” means an extension of the subway service located in the City of Toronto beyond its terminus at Downsview subway station further north in the City of Toronto and into The Regional Municipality of York, and works and equipment directly related to that extension. 2006, c. 33, Sched. H, s. 2. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for the Toronto-York subway extension. 2006, c. 33, Sched. H, s. 2. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for the Toronto-York subway extension shall not exceed the planned level of service over the 10-year period immediately following the preparation of the background study required under section 10. 2006, c. 33, Sched. H, s. 2. Regulations (4) The method…

5.1.1 (1) In this section, “Yonge North subway extension” means an extension of the subway service located in the City of Toronto beyond its terminus at Finch subway station further north in the City of Toronto and into The Regional Municipality of York, and works and equipment directly related to that extension. 2021, c. 34, Sched. 7, s. 2. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for the Yonge North subway extension. 2021, c. 34, Sched. 7, s. 2. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for the Yonge North subway extension shall not exceed the planned level of service over the 20-year period immediately following the preparation of the background study required under section 10. 2021, c. 34, Sched. 7, s. 2. Regulations (4) The method of e…

5.2 (1) In this section, “prescribed service” means a service that is prescribed for the purposes of this section. 2015, c. 26, s. 4. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for a prescribed service. 2015, c. 26, s. 4. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for a prescribed service shall not exceed the planned level of service over the 10-year period immediately following the preparation of the background study required under section 10. 2015, c. 26, s. 4. Regulations (4) The method of estimating the planned level of service for a prescribed service and the criteria to be used in doing so may be prescribed. 2015, c. 26, s. 4. Section Amendments with date in force (d/m/y) 2015, c. 26, s. 4 - 01/01/2016 Land acquisition class

5.3 (1) In this section, “land acquisition class” means the class required by subsection 7 (3.1). 2025, c. 14, Sched. 3, s. 1. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for the land acquisition class. 2025, c. 14, Sched. 3, s. 1. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for the land acquisition class shall not include an increase in the need for service that relates to a time after the 10-year period immediately following the preparation of the background study unless the estimate is in relation to a service set out in paragraph 1, 2, 3, 4, 5, 7, 9 or 10 of subsection 2 (4). 2025, c. 14, Sched. 3, s. 1. Section Amendments with date in force (d/m/y) 2025, c. 14, Sched. 3, s. 1 - 27/11/2025

6 A development charge by-law must set out the following: 1. The rules developed under paragraph 9 of subsection 5 (1) for determining if a development charge is payable in any particular case and for determining the amount of the charge. 2. An express statement indicating how, if at all, the rules provide for exemptions, for the phasing in of development charges and for the indexing of development charges. 3. How the rules referred to in paragraph 1 apply to the redevelopment of land. 4. The area of the municipality to which the by-law applies. 1997, c. 27, s. 6.

7 (1) Subject to subsection (3.1), a development charge by-law may provide for any service listed in subsection 2 (4) or the capital costs listed in subsection 5 (3) in respect of those services to be included in a class set out in the by-law. 2020, c. 18, Sched. 3, s. 3; 2025, c. 14, Sched. 3, s. 2 (1). Composition of class (2) A class may be composed of any number or combination of services and may include parts or portions of the services listed in subsection 2 (4) or parts or portions of the capital costs listed in subsection 5 (3) in respect of those services. 2020, c. 18, Sched. 3, s. 3. Studies (3) For greater certainty, a development charge by-law may provide for a class consisting of studies in respect of any service listed in subsection 2 (4) whose capital costs are described in paragraphs 5 and 6 of subsection 5 (3). 2020, c. 18, Sched. 3, s. 3. Land acquisition (3.1) A develo…

8 A development charge by-law or a by-law amending it comes into force on the day it is passed or the day specified in the by-law, whichever is later. 1997, c. 27, s. 8.

9 (1) Unless it expires or is repealed earlier, a development charge by-law expires 10 years after the day it comes into force. 1997, c. 27, s. 9 (1); 2022, c. 21, Sched. 3, s. 6 (1). Transition (1.1) For greater certainty, subsection (1), as it reads on and after the day subsection 6 (1) of Schedule 3 to the More Homes Built Faster Act, 2022 came into force, does not apply with respect to a development charge by-law that, before that day, had expired pursuant to subsection (1) as it read before that day. 2022, c. 21, Sched. 3, s. 6 (2). Council can pass new by-law (2) Subsection (1) does not prevent a council from passing a new development charge by-law. 1997, c. 27, s. 9 (2). Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 6 (1, 2) - 28/11/2022

9.1 (1) In this section, “specified date” means the day that is two years after the day subsection 1 (2) of Schedule 3 to the COVID-19 Economic Recovery Act, 2020 comes into force. 2020, c. 18, Sched. 3, s. 4; 2022, c. 21, Sched. 3, s. 6 (1). By-law — expiry before specified date (2) Despite subsections 2 (4) and 9 (1), a development charge by-law that would expire on or after May 2, 2019 and before the specified date remains in force as it relates to any service other than the services described in paragraphs 1 to 10 of subsection 2 (4) until the earliest of, (a) the day it is repealed; (b) the day the municipality passes a community benefits charge by-law under subsection 37 (2) of the Planning Act; and (c) the specified date. 2020, c. 18, Sched. 3, s. 4. By-law — expiry on or after specified date (3) If a development charge by-law would expire on or after the specified date, the follo…

9.2 (1) In this section, “specified date” means the date that is six months after the day that the emergency declared by Order in Council 518/2020 (Ontario Regulation 50/20) on March 17, 2020 pursuant to section 7.0.1 of the Emergency Management and Civil Protection Act is terminated or disallowed. 2020, c. 6, Sched. 1, s. 1. Same (2) Despite subsection 9 (1), (a) a development charge by-law that expired on or after March 17, 2020 and before the day section 1 of Schedule 1 to the Coronavirus (COVID-19) Support and Protection Act, 2020 comes into force is deemed not to have expired and shall remain in force until the earlier of the day the by-law is repealed and the specified date; and (b) a development charge by-law that expires on or after the day section 1 of Schedule 1 to the Coronavirus (COVID-19) Support and Protection Act, 2020 comes into force and before the specified date shall r…

Process before passing By-law

10 (1) Before passing a development charge by-law, the council shall complete a development charge background study. 1997, c. 27, s. 10 (1). Same (2) The development charge background study shall include, (a) the estimates under paragraph 1 of subsection 5 (1) of the anticipated amount, type and location of development; (b) the calculations under paragraphs 2 to 7 of subsection 5 (1) for each service to which the development charge by-law would relate; (c) an examination, for each service to which the development charge by-law would relate, of the long term capital and operating costs for capital infrastructure required for the service; (c.1) unless subsection 2 (9) or (11) applies, consideration of the use of more than one development charge by-law to reflect different needs for services in different areas; (c.2) an asset management plan prepared in accordance with subsection (3); and (…

11 A development charge by-law may only be passed within the one-year period following the completion of the development charge background study. 1997, c. 27, s. 11.

12 (1) Before passing a development charge by-law, the council shall, (a) hold at least one public meeting; (b) give at least 20-days notice of the meeting or meetings in accordance with the regulations; and (c) ensure that the proposed by-law and the background study are made available to the public at least two weeks prior to the meeting or, if there is more than one meeting, prior to the first meeting. 1997, c. 27, s. 12 (1). Making representations (2) Any person who attends a meeting under this section may make representations relating to the proposed by-law. 1997, c. 27, s. 12 (2). Council determination is final (3) If a proposed by-law is changed following a meeting under this section, the council shall determine whether a further meeting under this section is necessary and such a determination is final and not subject to review by a court or the Ontario Land Tribunal. 1997, c. 27,…

Appeal of By-law

13 (1) The clerk of a municipality that has passed a development charge by-law shall give written notice of the passing of the by-law, and of the last day for appealing the by-law, which shall be the day that is 40 days after the day the by-law is passed. 1997, c. 27, s. 13 (1). Requirements of notice (2) Notices required under this section must meet the requirements prescribed in the regulations and shall be given in accordance with the regulations. 1997, c. 27, s. 13 (2). Same (3) Every notice required under this section must be given not later than 20 days after the day the by-law is passed. 1997, c. 27, s. 13 (3). When notice given (4) A notice required under this section shall be deemed to have been given, (a) if the notice is by publication in a newspaper, on the day that the publication occurs; (b) if the notice is given by mail, on the day that the notice is mailed. 1997, c. 27, …

14 Any person or organization may appeal a development charge by-law to the Ontario Land Tribunal by filing with the clerk of the municipality on or before the last day for appealing the by-law, a notice of appeal setting out the objection to the by-law and the reasons supporting the objection. 1997, c. 27, s. 14; 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021

15 (1) If the clerk of the municipality receives a notice of appeal on or before the last day for appealing a development charge by-law, the clerk shall compile a record that includes, (a) a copy of the by-law certified by the clerk; (b) a copy of the development charge background study; (c) an affidavit or declaration certifying that notice of the passing of the by-law and of the last day for appealing it was given in accordance with this Act; and (d) the original or a true copy of all written submissions and material received in respect of the by-law before it was passed. 1997, c. 27, s. 15 (1). Same (2) The clerk shall forward a copy of the notice of appeal and the record to the Ontario Land Tribunal within 30 days after the last day of appeal and shall provide such other information or material as the Tribunal may require in respect of the appeal. 1997, c. 27, s. 15 (2); 2021, c. 4, …

16 (1) The Ontario Land Tribunal shall hold a hearing to deal with any notice of appeal of a development charge by-law forwarded by the clerk of a municipality. 1997, c. 27, s. 16 (1); 2021, c. 4, Sched. 6, s. 41 (1). Who to get notice (2) The Ontario Land Tribunal shall determine who shall be given notice of the hearing and in what manner. 1997, c. 27, s. 16 (2); 2021, c. 4, Sched. 6, s. 41 (1). Powers of Tribunal (3) After the hearing, the Ontario Land Tribunal may, (a) dismiss the appeal in whole or in part; (b) order the council of the municipality to repeal or amend the by-law in accordance with the Tribunal’s order; (c) repeal or amend the by-law in such manner as the Tribunal may determine. 2021, c. 4, Sched. 6, s. 41 (3). Limitation on powers (4) The Ontario Land Tribunal may not amend or order the amendment of a by-law so as to, (a) increase the amount of a development charge th…

17 The repeal or amendment of a development charge by-law by the Ontario Land Tribunal, or by the council of a municipality pursuant to an order of the Ontario Land Tribunal, shall be deemed to have come into force on the day the by-law came into force. 1997, c. 27, s. 17; 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021

18 (1) If the Ontario Land Tribunal repeals or amends a development charge by-law or orders the council of a municipality to repeal or amend a development charge by-law, the municipality shall refund, (a) in the case of a repeal, any development charge paid under the by-law; (b) in the case of an amendment, the difference between any development charge paid under the by-law and the development charge that would have been payable under the by-law as amended. 1997, c. 27, s. 18 (1); 2021, c. 4, Sched. 6, s. 41 (1). When refund due (2) If a municipality is required to make a refund under subsection (1), it shall do so, (a) if the Ontario Land Tribunal repeals or amends the by-law, within 30 days after the Tribunal’s order; (b) if the Ontario Land Tribunal orders the council of the municipality to repeal or amend the by-law, within 30 days after the repeal or amendment by the council. 1997, …

Process and Appeals for Amendments to By-laws

19 (1) Sections 10 to 18 apply, with necessary modifications, to an amendment to a development charge by-law other than an amendment by, or pursuant to an order of, the Ontario Land Tribunal. 1997, c. 27, s. 19 (1); 2021, c. 4, Sched. 6, s. 41 (1). Exceptions (1.1) Subsection (1) does not apply to an amendment to a development charge by-law if the only effect of the amendment is to, (a) repeal a provision specifying the date on which the by-law expires or to amend such a provision to provide for the by-law to expire on a later date; (b) repeal a provision providing for the indexing of a development charge or to amend such a provision to provide for a development charge not to be indexed; or (c) decrease the amount of a development charge that is payable for one or more types of development in the circumstances specified in the amendment. 2025, c. 9, Sched. 4, s. 3. Notice (1.2) The clerk…

Complaints about Development Charges

20 (1) A person required to pay a development charge, or the person’s agent, may complain to the council of the municipality imposing the development charge that, (a) the amount of the development charge was incorrectly determined; (b) whether a credit is available to be used against the development charge, or the amount of the credit or the service with respect to which the credit was given, was incorrectly determined; or (c) there was an error in the application of the development charge by-law. 1997, c. 27, s. 20 (1). Time limit (2) A complaint may not be made under subsection (1) later than 90 days after the day the development charge, or any part of it, is payable. 1997, c. 27, s. 20 (2). Form of complaint (3) The complaint must be in writing, must state the complainant’s name, the address where notice can be given to the complainant and the reasons for the complaint. 1997, c. 27, s…

21 (1) The clerk of the municipality shall mail to the complainant a notice of the council’s decision, and of the last day for appealing the decision, which shall be the day that is 40 days after the day the decision is made. 1997, c. 27, s. 21 (1). Requirements of notice (2) The notice required under this section must be mailed not later than 20 days after the day the council’s decision is made. 1997, c. 27, s. 21 (2).

22 (1) A complainant may appeal the decision of the council of the municipality to the Ontario Land Tribunal by filing with the clerk of the municipality, on or before the last day for appealing the decision, a notice of appeal setting out the reasons for the appeal. 1997, c. 27, s. 22 (1); 2021, c. 4, Sched. 6, s. 41 (1). Additional ground (2) A complainant may also appeal to the Ontario Land Tribunal if the council of the municipality does not deal with the complaint within 60 days after the complaint is made by filing with the clerk of the municipality a notice of appeal. 1997, c. 27, s. 22 (2); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021

23 (1) If a notice of appeal under subsection 22 (1) is filed with the clerk of the municipality on or before the last day for appealing a decision, the clerk shall compile a record that includes, (a) a copy of the development charge by-law certified by the clerk; (b) the original or a true copy of the complaint and all written submissions and material received in support of the complaint; (c) a copy of the council’s decision certified by the clerk; and (d) an affidavit or declaration certifying that notice of the council’s decision and of the last day for appealing it was given in accordance with this Act. 1997, c. 27, s. 23 (1). Same (2) If a notice of appeal under subsection 22 (2) is filed with the clerk of the municipality, the clerk shall compile a record that includes, (a) a copy of the development charge by-law certified by the clerk; and (b) the original or a true copy of the co…

24 (1) The Ontario Land Tribunal shall hold a hearing to deal with any notice of appeal relating to a complaint forwarded by the clerk of a municipality. 1997, c. 27, s. 24 (1); 2021, c. 4, Sched. 6, s. 41 (1). Parties (2) The parties to the appeal are the appellant and the municipality. 1997, c. 27, s. 24 (2). Notice to parties (3) The Ontario Land Tribunal shall give notice of the hearing to the parties. 1997, c. 27, s. 24 (3); 2021, c. 4, Sched. 6, s. 41 (1). Powers of Tribunal (4) After the hearing, the Ontario Land Tribunal may do anything that could have been done by the council of the municipality under subsection 20 (6). 1997, c. 27, s. 24 (4); 2021, c. 4, Sched. 6, s. 41 (1). Dismissal without hearing (5) Despite subsection (1), the Ontario Land Tribunal may, where it is of the opinion that the complaint set out in the notice of appeal is insufficient, dismiss the appeal without…

25 (1) If a development charge that has already been paid is reduced by the council of a municipality under section 20 or by the Ontario Land Tribunal under section 24, the municipality shall immediately refund the overpayment. 1997, c. 27, s. 25 (1); 2021, c. 4, Sched. 6, s. 41 (1). Interest (2) The municipality shall pay interest on an amount it refunds at a rate not less than the prescribed minimum interest rate from the day the amount was paid to the municipality to the day it is refunded. 1997, c. 27, s. 25 (2); 2020, c. 18, Sched. 3, s. 7. Section Amendments with date in force (d/m/y) 2020, c. 18, Sched. 3, s. 7 - 18/09/2020 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021

Collection of Development Charges

26 (1) A development charge is payable for a development upon a building permit being issued for the development unless the development charge by-law provides otherwise under subsection (2). 1997, c. 27, s. 26 (1). Multiple building permits (1.1) If a development consists of one building that requires more than one building permit, the development charge for the development is payable upon the first building permit being issued. 2015, c. 26, s. 6. Multiple phases (1.2) If a development consists of two or more phases that will not be constructed concurrently and are anticipated to be completed in different years, each phase of the development is deemed to be a separate development for the purposes of this section. 2015, c. 26, s. 6. Special case, approval of plan of subdivision (2) A municipality may, in a development charge by-law, provide that a development charge for services set out i…

26.1 (1) Despite section 26, a development charge in respect of any part of a development that consists of a type of development set out in subsection (2) is payable in accordance with this section. 2019, c. 9, Sched. 3, s. 8 (1). Same (2) The types of development referred to in subsection (1) are the following: 1. Rental housing development. 2. Institutional development. 3. Residential development not described in paragraph 1. 4., 5. Repealed: 2019, c. 15, Sched. 10, s. 1 (1). 2019, c. 9, Sched. 3, s. 8 (1); 2019, c. 15, Sched. 10, s. 1 (1); 2022, c. 21, Sched. 3, s. 7 (1); 2025, c. 9, Sched. 4, s. 4 (1). Annual instalments (3) A development charge in respect of any part of a development that consists of a type of development described in paragraph 1 or 2 of subsection (2) shall be paid in equal annual instalments beginning on the earlier of the date of the issuance of a permit under th…

26.2 (1) Subject to subsection (1.1), the total amount of a development charge is the amount of the development charge that would be determined under the by-law on, (a) the day an application for an approval of development in a site plan control area under subsection 41 (4) of the Planning Act or subsection 114 (5) of the City of Toronto Act, 2006 was made in respect of the development that is the subject of the development charge; (b) if clause (a) does not apply, the day an application for an amendment to a by-law passed under section 34 of the Planning Act was made in respect of the development that is the subject of the development charge; or (c) if neither clause (a) nor clause (b) applies, (i) in the case of a development charge in respect of a development to which section 26.1 applies, the day the development charge would be payable in accordance with section 26 if section 26.1 di…

26.3 (1) In this section, “adjustment date” means January 1, April 1, July 1 or October 1; (“date de rajustement”) “average prime rate”, on a particular date, means the mean, rounded to the nearest hundredth of a percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. (“taux préférentiel moyen”) 2022, c. 21, Sched. 3, s. 9. Same (2) For the purposes of subsections 26.1 (7) and 26.2 (3), the maximum interest rate that a municipality may charge shall be determined in accordance with the following rules: 1. A base rate of interest shall be determined for April 1, 2022 and for eac…

27 (1) A municipality may enter into an agreement with a person who is required to pay a development charge providing for all or any part of a development charge to be paid before or after it would otherwise be payable. 1997, c. 27, s. 27 (1). Amount of charge payable (2) The total amount of a development charge payable under an agreement under this section is the amount of the development charge that would be determined under the by-law on the day specified in the agreement or, if no such day is specified, at the earlier of, (a) the time the development charge or any part of it is payable under the agreement; (b) the time the development charge would have been payable in the absence of the agreement. 1997, c. 27, s. 27 (2). Interest on late payments (3) An agreement under this section may allow the municipality to charge interest, at a rate stipulated in the agreement, on that part of t…

28 Despite any other Act, a municipality is not required to issue a permit under the Building Code Act, 1992 for a development to which development charges apply unless, (a) in the case of a permit issued under subsection 8 (1) of that Act, all development charges have been paid except for any charges payable in accordance with section 26.1 of this Act or any charges that an agreement made under section 27 of this Act provides are payable after the permit is issued; or (b) in the case of any other permit issued under that Act, all development charges that are payable before the issuance of the permit have been paid. 2025, c. 9, Sched. 4, s. 6. Section Amendments with date in force (d/m/y) 2025, c. 9, Sched. 4, s. 6 - 03/11/2025

29 If a development charge is imposed by an upper-tier municipality on a development in an area municipality, the following apply: 1. The treasurer of the upper-tier municipality shall certify to the treasurer of the area municipality that the charge has been imposed, the amount of the charge, the manner in which the charge is to be paid and when the charge is payable. 2. The treasurer of the area municipality shall collect the charge when it is payable and shall, unless otherwise agreed by the upper-tier municipality, pay the charge to the treasurer of the upper-tier municipality on or before the 25th day of the month following the month in which the charge is received by the area municipality. 3. If the charge is collected by the upper-tier municipality, the treasurer of the upper-tier municipality shall certify to the treasurer of the area municipality that the charge has been collect…

30 If an upper-tier municipality issues building permits, the treasurer of each area municipality within the upper-tier municipality shall, when all development charges are paid with respect to a development in the area municipality, certify to the chief building official of the upper-tier municipality that those charges have been paid. 1997, c. 27, s. 30; 1997, c. 31, s. 146. Section Amendments with date in force (d/m/y) 1997, c. 31, s. 146 (1) - 01/01/1998

31 (1) If building permits are issued by an upper-tier municipality, the upper-tier municipality may agree with an area municipality to collect all the development charges on development in the area municipality. 1997, c. 27, s. 31 (1); 1997, c. 31, s. 146. Sections 29 and 30 (2) If an agreement is made under this section, sections 29 and 30 do not apply with respect to development in the area municipality. 1997, c. 27, s. 31 (2). Section Amendments with date in force (d/m/y) 1997, c. 31, s. 146 (1) - 01/01/1998

32 (1) If a development charge or any part of it remains unpaid after it is payable, the amount unpaid including any interest payable in respect of it in accordance with this Act shall be added to the tax roll and shall be collected in the same manner as taxes. 1997, c. 27, s. 32 (1); 2019, c. 9, Sched. 3, s. 9. Treasurer certifies unpaid amount (2) If a development charge or any part of it imposed by an upper-tier municipality remains unpaid after it is payable, the treasurer of the upper-tier municipality shall certify to the treasurer of the area municipality in which the land is located the amount that is unpaid. 1997, c. 27, s. 32 (2). Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 9 - 01/01/2020

Reserve Funds and the Use of Development Charges

33 A municipality that has passed a development charge by-law shall establish a separate reserve fund for each service to which the development charge relates. 1997, c. 27, s. 33.

33.1 (1) This section applies with respect to a reserve fund established by an upper-tier municipality in accordance with section 33 before the day subsection 1 (2) of Schedule 3 to the COVID-19 Economic Recovery Act, 2020 comes into force for any services other than those described in paragraphs 1 to 20 of subsection 2 (4). 2020, c. 18, Sched. 3, s. 9. Non-application, reserve fund re services prescribed under para. 21 of subs. 2 (4) (2) Despite subsection (1), this section does not apply with respect to a reserve fund established for a service that is prescribed for the purposes of paragraph 21 of subsection 2 (4) if the service is prescribed before the specified date for the purposes of section 9.1. 2020, c. 18, Sched. 3, s. 9. Deemed general capital reserve (3) The following rules apply with respect to a reserve fund to which this section applies: 1. On the specified date for the pur…

34 The municipality shall pay each development charge it collects into the reserve fund or funds to which the charge relates. 1997, c. 27, s. 34.

35 (1) The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 7 of subsection 5 (1). 1997, c. 27, s. 35; 2019, c. 9, Sched. 3, s. 10. Exception (1.1) In addition to the uses permitted by subsection (1), the money in a reserve fund established for a service may be spent on the capital costs of that service described in paragraph 1 of subsection 5 (3) provided the costs are ones determined under paragraphs 2 to 7 of subsection 5 (1) that are not paid for with money in the reserve fund established for a class required by subsection 7 (3.1). 2025, c. 14, Sched. 3, s. 5. Requirement to spend or allocate monies in reserve fund (2) Beginning in 2023 and in each calendar year thereafter, a municipality shall spend or allocate at least 60 per cent of the monies that are in a reserve fund for the following services at the beginnin…

36 Despite section 35, a municipality may borrow money from a reserve fund but if it does so, the municipality shall repay the amount used plus interest at a rate not less than the prescribed minimum interest rate. 1997, c. 27, s. 36.

37 (1) Subsections 418 (3) and (4) and 418.1 (14) and (15) of the Municipal Act, 2001 and any equivalent provisions of, or made under, the City of Toronto Act, 2006 do not apply to development charges collected by a municipality. 2002, c. 17, Sched. F, Table; 2006, c. 32, Sched. C, s. 12 (2); 2017, c. 10, Sched. 4, s. 2. Limitation (2) Development charges may not be advanced by a municipality to its capital account as interim financing of capital undertakings of the municipality, except for those capital undertakings for which the development charges may be spent under this Act. 2002, c. 17, Sched. F, Table. Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003 2006, c. 32, Sched. C, s. 12 (2) - 01/01/2007 2017, c. 10, Sched. 4, s. 2 - 01/03/2018

Credits

38 (1) If a municipality agrees to allow a person to perform work that relates to a service to which a development charge by-law relates, the municipality shall give the person a credit towards the development charge in accordance with the agreement. 1997, c. 27, s. 38 (1). Amount of credits (2) The amount of the credit is the reasonable cost of doing the work as agreed by the municipality and the person who is to be given the credit. 1997, c. 27, s. 38 (2). Limitation: above average level of service (3) No credit may be given for any part of the cost of work that relates to an increase in the level of service that exceeds the average level of service described in paragraph 4 of subsection 5 (1). 1997, c. 27, s. 38 (3). Credit can be given before work completed (4) A credit, or any part of it, may be given before the work for which the credit is given is completed. 1997, c. 27, s. 38 (4)…

39 (1) A credit given in exchange for work done is a credit only in relation to the service to which the work relates. 1997, c. 27, s. 39 (1). Credits can be divided among services (2) If the work relates to more than one service, the credit for the work must be allocated, in the manner agreed by the municipality, among the services to which the work relates. 1997, c. 27, s. 39 (2). Exception by agreement (3) The municipality may agree that a credit given be in relation to another service to which the development charge by-law relates. 1997, c. 27, s. 39 (3). Changes after credit given (4) The municipality may agree to change a credit so that it relates to another service to which the development charge by-law relates. 1997, c. 27, s. 39 (4).

40 (1) A credit may not be transferred unless, (a) the holder and person to whom the credit is to be transferred have agreed in writing to the transfer; and (b) the municipality has agreed to the transfer, either in the agreement under which the holder of the credit was given the credit or subsequently. 1997, c. 27, s. 40 (1). Transfer is by municipality (2) The transfer of a credit is not effective until the municipality transfers it. 1997, c. 27, s. 40 (2). When municipality must transfer credit (3) A municipality shall transfer a credit upon being requested to do so by the holder, the person to whom the credit is to be transferred or the agent of either of them and being given proof that the conditions in subsection (1) are satisfied. 1997, c. 27, s. 40 (3).

41 (1) Subject to subsection (1.1), a credit that relates to a service may be used only with respect to that part of a development charge that relates to the service. 1997, c. 27, s. 41 (1); 2025, c. 9, Sched. 4, s. 7 (1). Services deemed to be one service (1.1) If two or more services are deemed to be one service by the regulations, a credit that relates to any one of those services may be used with respect to that part of a development charge that relates to any of those services. 2025, c. 9, Sched. 4, s. 7 (2). Use under another development charge by-law (2) A credit given towards a development charge under a development charge by-law may be used for a development charge under another development charge by-law only if that other development charge by-law so provides. 1997, c. 27, s. 41 (2). Used by holder or agent (3) A credit may be used only by the holder or the holder’s agent. 1997…

Miscellaneous

42 A municipality that has passed a development charge by-law may register the by-law or a certified copy of it against the land to which it applies. 1997, c. 27, s. 42.

43 (1) The treasurer of a municipality shall each year on or before June 30 of the year, give the council a financial statement relating to development charge by-laws and reserve funds established under section 33. 1997, c. 27, s. 43 (1); 2025, c. 14, Sched. 3, s. 6 (1). Requirements (2) A statement must include, for the preceding year, (a) statements of the opening and closing balances of the reserve funds and of the transactions relating to the funds; (b) statements identifying, (i) all assets whose capital costs were funded under a development charge by-law during the year, (ii) for each asset mentioned in subclause (i), the manner in which any capital cost not funded under the by-law was or will be funded; (c) a statement as to compliance with subsection 59.1 (1); and (d) any other information that is prescribed. 2015, c. 26, s. 7 (1). Statement available to public (2.1) The council …

PART III FRONT-ENDING AGREEMENTS

Front-ending Agreements

44 (1) A municipality in which a development charge by-law is in force may enter into an agreement, called a front-ending agreement, that, (a) applies with respect to work, done before or after the agreement is entered into, (i) that relates to the provision of services for which there will be an increased need as a result of development, and (ii) that will benefit an area of the municipality, defined in the agreement, to which the development charge by-law applies; (b) provides for the costs of the work to be borne by one or more of the parties to the agreement; and (c) provides for persons who, in the future, develop land within the area defined in the agreement to pay an amount to reimburse some part of the costs of the work. 1997, c. 27, s. 44 (1). Restrictions on services covered (2) The services to which the work relates must be services to which the development charge by-law relat…

45 (1) A front-ending agreement must contain the following: 1. A description of the work to be done, a definition of the area of the municipality that will benefit from the work and the estimated cost of the work. 2. The proportion of the cost of the work that will be borne by each party to the agreement. 3. The method for determining the part of the costs of the work that will be reimbursed by the persons who, in the future, develop land within the area defined in the agreement. 4. The amount, or a method for determining the amount, of the non-reimbursable share of the costs of the work for the parties and for persons who reimburse parts of the costs of the work. 5. A description of the way in which amounts collected from persons to reimburse the costs of the work will be allocated. 1997, c. 27, s. 45 (1). Other provisions allowed (2) A front-ending agreement may contain other provision…

Objections to Agreements

46 (1) The clerk of a municipality that has entered into a front-ending agreement shall give written notice of an agreement and of the last day for filing an objection to the agreement, which shall be the day that is 40 days after the day the agreement is made. 1997, c. 27, s. 46 (1). Requirements of notice (2) Notice must be given, not later than 20 days after the day the agreement is made, (a) by mailing a notice to every owner of land within the area defined in the front-ending agreement; or (b) by publishing a notice in a newspaper having general circulation in the municipality. 1997, c. 27, s. 46 (2). Same (3) A notice required under this section must explain the nature and purpose of the agreement and must indicate that the agreement can be viewed in the office of the clerk of the municipality during normal office hours. 1997, c. 27, s. 46 (3). Agreement to be available (4) The cle…

47 Any owner of land within the area defined in the front-ending agreement may object to a front-ending agreement by filing with the clerk of the municipality on or before the last day for objecting to the agreement, a notice of objection setting out the objection to the agreement and the reasons supporting the objection. 1997, c. 27, s. 47.

48 (1) If the clerk of the municipality receives a notice of objection on or before the last day for filing an objection, the clerk shall compile a record that includes, (a) a copy, certified by the clerk, of every development charge by-law that applies to the area defined in the front-ending agreement; (b) a copy of the front-ending agreement certified by the clerk; (c) an affidavit or declaration certifying that notice of the front-ending agreement and of the last day for filing an objection to it was given in accordance with this Act. 1997, c. 27, s. 48 (1). Same (2) The clerk shall forward a copy of the notice of objection and the record to the Ontario Land Tribunal within 30 days after the last day for filing an objection and shall provide such other information or material as the Tribunal may require in respect of the objection. 1997, c. 27, s. 48 (2); 2021, c. 4, Sched. 6, s. 41 (…

49 (1) The Ontario Land Tribunal shall hold a hearing to deal with any notice of objection to a front-ending agreement forwarded by the clerk of a municipality. 1997, c. 27, s. 49 (1); 2021, c. 4, Sched. 6, s. 41 (1). Powers of Tribunal (2) After the hearing, the Ontario Land Tribunal may, (a) dismiss the objection in whole or in part; (b) terminate the agreement; (c) order that the agreement is terminated unless the parties amend it in accordance with the Tribunal’s order. 2021, c. 4, Sched. 6, s. 41 (7). Same (3) If the Ontario Land Tribunal terminates the agreement or makes an order under clause (2) (c), the Tribunal may order the municipality to refund any amount paid under the agreement in excess of, (a) if the agreement is terminated, what would have been payable under the development charge by-law; or (b) if the agreement is amended, what would have been payable under the amended …