Guelph adapting to Bill 108, the More Homes, More Choices Act, 2019
Guelph, Ont., January 23, 2020—On January 1, 2020, Bill 108, the More Homes, More Choices Act, 2019, came into effect impacting how development charges (DCs) are implemented across municipalities.
Development charges are fees levied on new developments to fund the cost of infrastructure, such as sewers, roads, and water mains, needed to accommodate growth.
For the City of Guelph, the changes impact when the City can charge for DCs, when they are due, and who is eligible for payment deferral.
When are development charges initiated?
There are two points at which DCs are initiated—following the City receiving a completed site plan application or zoning bylaw amendment application, or if there is no application, DCs are initiated when a building permit is issued. Previously, DCs for all developments were initiated when building permits were issued. Once DCs are initiated, the DC rate is good for two years or until occupancy occurs. After two years with no occupancy, the rate increases.
When are development charges due?
Development charges are due when an occupancy permit is issued under the Building Code Act or when the building is first occupied, whichever date comes first.
New under Bill 108, the City can charge interest on outstanding DCs for the period between the time development charges are initiated and the full DCs are paid.
In addition, Bill 108 allows DC payment options for rental and institutional developments and non-profit housing. Rental housing and institutional developments can pay DCs in six installments over five years. Non-profit housing can take up to 20 years, with 21 installments to pay for DCs. Interest on development charges installments will be payable annually until full development charges are paid.
2020 development charges rate
The development charges rate is adjusted annually using the non-residential construction price index to ensure the rate collected keeps pace with the increasing cost of construction. For 2020, the City of Guelph’s DCs will increase by 3.5 per cent as of March 2 under Guelph’s Development Charges Bylaw. DCs are regulated under the Ontario Development Charges Act O.Reg 82/98 section (7).
Tara Baker, City Treasurer and General Manager Finance
City of Guelph
519-822-1260 extension 2084