Toronto DC Compromise Moves Forward
Overview
The City of Toronto has been pushing this year to more than double development charges, the charges imposed on new homes and constructed in the city, allowing no transition for developments at various stages of the planning and development process. BILD has worked hard to negotiate a fair compromise to keep homes more affordable in the City of Toronto and protect purchasers from massive additional charges on closing that would be passed on to them as a result of the increased development charges. Toronto’s Executive Committee unanimously approved a settlement with BILD on Tuesday, September 24, 2013, which would reduce the proposed increase by about 25% and allow a phasing over the next 2 ½ years until August 2016, rather than implementing them next summer. http://tiny.cc/oaq83w http://tiny.cc/42x83w The Executive Committee will also be looking at ways to use reduced development charges to encourage more new apartment construction which is still woefully inadequate to meet rental demand.
New home buyers and builders shouldn’t necessarily break out the Champagne yet. The increase is still massive. It will see an 8% increase with a fee for a single home or a semi jump to $34,482.00 with condominiums rising to over $21,000.00 per unit. These numbers now bring Toronto more in line with other GTA municipalities. The big difference between Toronto and the other municipalities, however, is that Toronto has already the infrastructure and the existing services which do not really require the same type of service expansion that new greenfields development would require in the suburbs. As well, land costs are astronomically high in the city to reflect both the desirability of living in the city and the existing services.
Nonetheless, the compromise is far better than the alternative that was being presented by the city and hopefully will be approved by the full Council when it meets in October.
Some people ask why condominiums are being built so small – the high cost of land and government charges. This latest increase will not help make condominiums in Toronto any more affordable.
