Ontario pays a city to cut development charges — what the model could mean for Toronto

What it means in dollars

The province and Ottawa are now paying municipalities to cut the fees charged on new housing. In St. Thomas, the cut is worth an estimated $5,961 per home. For an example mid-rise with 100 apartments, that would be close to $596,100 less in fees on the project.

That matters in Toronto because fee levels help decide whether new rental buildings get built at all. Toronto has 3,611 registered apartment buildings with 328,273 units, and only 63 of them, holding 15,203 units, were built in 2019 or later. The median building year is 1962.

Who gets the money

Funding is being steered to municipalities that drop residential development charges by 30 to 50 per cent or more and hold the cut for at least three years. St. Thomas qualified with a 30 per cent cut on detached and multi-unit homes and 50 per cent on other unit types. Its award, up to $19.6 million, is tied to a new wastewater plant. Municipalities must pay at least 10 per cent of project costs, and the money depends on signed agreements.

If you rent

Nothing changes on your lease today. Toronto was not part of this announcement. Watch whether council moves on development charges, since that is the trigger for this kind of provincial and federal money.

If you own or manage a building

If you are planning new units, check the program rules and timelines at the source before you budget. The savings apply to new construction fees, not to existing buildings.

Full details are in the provincial announcement linked above.