Development charges

A buyer of real estate, or of a business planning an expansion or new build, can meet a development charge as a cost tied to the project. The City of Toronto describes them as fees collected from developers to help pay for infrastructure needed to serve new development. See whether the real estate purchase is a separate agreement. This entry covers Ontario only; check the rules where the property is.

When one can apply

Under section 2(2) of the Act, a charge may be imposed only for development that requires one of the listed approvals, such as a zoning by-law amendment, a minor variance, a consent, approval of a plan of subdivision, or the issuing of a building permit. Section 2(3) says an action does not qualify if its only effect is to permit the enlargement of an existing residential unit. Under section 26(1), a charge is payable upon a building permit being issued, unless the by-law provides otherwise under section 26(2); section 26 does not apply where there is an agreement under section 27, and section 26.1 sets other timing for certain types of development. The Act also has exemption sections, so read it with the by-law.

What to ask

• Whether a development charge by-law covers the property and the planned work
• Whether a charge has been paid or remains outstanding, and who bears it under the agreement
• Whether an exemption in the Act or the by-law could apply