Ontario Construction News staff writer
The City of Vaughan has adopted a new Development Charges (DC) Rate Reduction and Deferral Policy to support the creation of more residential development. The policy, which was approved by Mayor Steven Del Duca, has received praise from the Building Industry and Land Development Association (BILD).
“BILD recognizes and commends Mayor Del Duca and the City of Vaughan for taking bold action to address housing supply and the cost to build by lowering development charges,” BILD president and CEO Dave Wilkes said in a statement on Wednesday (Nov. 20). “This will enhance the financial viability of future projects, unlocking potential investment and stimulating supply.”
The Greater Toronto Area (GTA) is facing a growing challenge of rising construction costs and government fees, taxes, and charges, making it difficult to deliver new housing units at a rate that meets market demand. These factors have led to a decline in sales and a subsequent decrease in new housing construction, threatening the region’s future housing supply.
GTA homebuyers pay almost 25 per cent of the cost of a new home in fees, taxes, and charges from all levels of government. The city’s new DC rate reductions, effective as of Nov. 19, bring Vaughan’s rates below those of other comparable towns and cities in the region. This will help unlock stalled housing projects and generate much-needed supply.
BILD notes that other GTA municipalities have also taken steps to address the issue of development charges. Earlier in 2024, Burlington made a significant reduction to its proposed development charge increase. Discussions regarding development charge policies are underway in other municipalities.
“The solution is clear: to fix the Greater Toronto Area’s housing crisis, we must first fix the cost to build in order to jump-start stalled construction and get housing starts back on the right trajectory,” said Wilkes. “It is time for other municipalities to follow the bold leadership shown by Mayor Del Duca and the City of Vaughan and take action to reduce the barriers to building the housing supply the region desperately needs. The economic viability and social fabric of all communities across the GTA are at stake.”
BILD represents 1,200 companies involved in home building, residential and non-residential land development, and professional renovation in the Greater Toronto Area.
