Development Charges - Bill 23 Changes

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Bill 23 Changes to Development Charges Update

The Government of Ontario passed Bill 23, the More Homes Built Faster Act, on November 28, 2022. This legislation is part of the government's plans to achieve construction of 1.5 million homes by 2032.
Development Charges (D.C.) are one-time fees.

The Province’s Planning Act allows municipalities to collect these charges so that growth pays for growth and not by the existing taxpayers. Once built thereafter the ongoing operational costs for the new infrastructure are included within the municipal budget and recovered through property taxation, user fees and charges or a combination thereof.

Township of Cavan Monaghan Development Charges By-law No. 2022-43 and schedules that relate to the 2022 - 2024 fiscal years as a result of Bill 23 and indexing are included below;

 

  • Original Schedule B - Full (100%) calculated charges as per background study, Finance Report 2022-14, effective August 3, 2022 (pre-Bill 23 amendments)
  • Schedule 2022B - effective November 28, 2022 to December 31, 2022 per Bill 23 changes to D.C.A. (Phase-in @ 80%)
  • Schedule 2023A - effective January 1, 2023 to August 2, 2023 as per annual Construction Price Index (maintaining 80% phase-in) 
  • Schedule 2023B - effective August 3, 2023 to December 31, 2023 per Bill 23 changes to D.C.A. (Phase-in @ 85%) 
  • Schedule 2024A - effective January 1, 2024 to August 2, 2024 as per annual Constrution Price Index (maintaining 85% phase-in)
  • Schedule 2024 B - effective August 3, 2024 to December 31, 2024 per Bill 23 changes to D.C.A. (Phase-in @ 90%)

As per Bill 23, for all D.C. By-laws passed after January 1, 2022, the development charge must be phased in annually over the first five years the by-law is in force. Therefore the Cavan Monaghan Development Charges phase-in dates are as follows;

  • Year 1 – 80% of the maximum charge; effective November 28, 2022
  • Year 2 – 85% of the maximum charge; effective August 3, 2023
  • Year 3 – 90% of the maximum charge; effective August 3, 2024
  • Year 4 – 95% of the maximum charge; effective August 3, 2025
  • Year 5 to expiry – 100% of the maximum charge; effective August 3, 2026

The D.C. By-law provides for the automatic indexing of the development charges, without amendment, annually, beginning on January 1, annually in accordance with the prescribed index in the Act (Statistics Canada Quarterly, Non-Residential Building Construction Price Index, CANSIM Table 327-0043).

For additional information;