The federal Housing Minister Gregor Robertson’s office has reiterated the Liberal government’s commitment to halving municipal development charges, following Robertson’s recent comments at a news conference in Toronto. When asked about reducing fees to lower homebuilding costs, Robertson acknowledged the challenges posed by development charges across Canada and reaffirmed the government’s pledge to cut them by 50%, in collaboration with provinces and territories. He mentioned that more details on this initiative would be disclosed in the upcoming federal budget on Nov. 4.
Robertson’s press secretary, Renee Proctor, confirmed that the commitment to reducing development charges remains active, emphasizing the mandate from Canadians to swiftly lower costs and facilitate housing construction. The Liberals’ election platform promised a five-year plan to halve development charges by working with provinces and territories to offset foregone revenue, leveraging upcoming federal investments in infrastructure projects.
Development charges, which builders pay to cover the infrastructure costs of new housing, have been steadily increasing and are seen as impeding efforts to address Canada’s housing supply shortage. Toronto Mayor Olivia Chow highlighted financing as a major obstacle for builders and discussed ongoing discussions with Ottawa regarding adjustments to development charges to make building more affordable.
Robertson addressed the complexity of tackling building costs due to varying municipal approaches to development fees. He previously mentioned plans to introduce improvements this fall to strike a balance between reducing charges and ensuring adequate investment in housing infrastructure. During his Toronto visit, Robertson announced federal funding for sewer infrastructure and the launch of the first housing project by the government’s affordable housing agency, Build Canada Homes.
The federal government will allocate up to $283 million from the Canada Housing Infrastructure Fund to enhance Toronto’s Black Creek sewer system, enabling the construction of an additional 63,000 homes. The initial Build Canada Homes project at Arbo Downsview will add 540 units, with at least 40% designated as affordable housing. The agency will soon issue a request for qualifications for developers to utilize factory-built housing technologies for the project.
