The GTA Construction Report – December 2008 – PAGE A3
CHBA continues fight against rising development charges
MATTHEW DESROSIERS – The GTA Construction Report Editor
ment charges. that’s the more appropriate Hamilton, and Halifax. of Guelph speak on the ef-
The CHBA also notes way to charge people as Their three priorities are se- fects of development
The Canadian Home home of their own,” he said. that in a number of cases, they use a particular facility, curing additional federal in- charges on housing afford-
Builders Association’s “First-time buyers are often accounting for development compared to development frastructure investment, ability and choice. She con-
(CHBA) Urban Council re- the most adversely af- charges is loose, leading to charges being constantly in- combating higher taxes, firmed that these are always
cently met in Ottawa to dis- fected.” the likelihood that the creased and adversely af- fees, levies and charges on passed on to new home buy-
cuss a range of issues While the form and money will not go where it fecting a minority of new home buyers, and pro- ers according to her eco-
affecting the industry, in- structure of DCs are an issue is supposed to. “Unfortu- people.” moting the residential con- nomic research.
cluding the continued rise of for new home builders, of nately, there is a problem The CHBA Urban Coun- struction sector as a key part Related to development
development charges (DCs) equal or greater concern is that municipalities need to cil meets three times a year of overall urban growth. It’s charges and other issues, the
across Canada. the rate at which such bank development charges and consists of the presi- a $100 billion industry Urban Council assembles
“Development charges of charges are increasing. prior to using them for new dents or representatives every year, Laberge said. and recommends to the
various kinds and under dif- “Development charges capital projects,” said from the 12 largest associa- Each meeting, the Urban CHBA Board of Directors
ferent names are intended to have been ramping up, typi- Laberge. “They may actu- tions within the CHBA, in- Council has guest speakers “information toolkits” for
help municipalities install cally at a rate much higher ally dip into the reserve cluding Toronto, Vancouver, on one or more of their pri- the membership, helping
infrastructure leading up to than inflation,” said funds established to hold the Edmonton, Calgary, Regina, orities. At their latest meet- them raise the priority issues
the edge of new develop- Laberge. “Of course, they money, and may end up not Saskatoon, Winnipeg, Ot- ing, they had Dr. Marion with provincial and munici-
ment,” said Vince Laberge, all have to be passed on to using it for the planned in- tawa, Waterloo, London, Steele from the University pal governments.
chair of the Urban Council. the new home buyer or the frastructure that was in-
“They are for hard services renter, so the situation is that tended.”
that are not in a subdivision if development charges are “There’s a concern about
or on the site of a new build- going up, then the home the overall accountability,
ing. An example would be builders are worried about management, and reporting
an expanded arterial road the impacts on housing af- on development charges.”
leading to a new develop- fordability.” If housing prices are
ment.” New home buyers typi- going to be pushed up by
Laberge noted that while cally have mortgages that DCs for new home buyers,
municipalities often say that include the costs of devel- developers want to know
“growth must pay for itself”, opment charges, so they will that the money is going
DCs inevitably provide in- be paying higher mortgages, where it is supposed to: in-
frastructure and associated as well. In effect, signifi- stalling infrastructure to
services used by the entire cant long-term costs of in- serve those home buyers.
community as opposed to frastructure investment that At its recent meeting, the
just new residential devel- should be paid by the prop- Urban Council agreed that
opments. The CHBA’s po- erty taxes are being borne the most appropriate instru-
sition is that it is not fair to by new home buyers ment for building new infra-
charge only new home buy- through their mortgages. structure is debt financing,
ers – a small portion of the In 2007, a comprehen- in which the overall popula-
population – for something sive report was prepared for tion is charged for the costs
everyone uses. He said there the Canada Mortgage and and those who benefit also
is no direct link in most ju- Housing Corporation pay.
risdictions between the de- (CMHC) on government “Whether it’s debt fi-
velopment charges and imposed charges for new nancing by a municipal util-
actual costs of specific in- homes in major urban cen- ity, or debt financing by the
frastructure installed. There tres across Canada. It may municipality as a whole,
is a general, flat fee that is come as little surprise that
charged per unit. Toronto topped the list for
“Development charges overall charges paid, in mu-
are effectively a kind of tax nicipal, provincial and fed-
levied on the minority of the eral government-imposed
population.” Laberge added. charges. For the average sin-
“Raising these amounts can gle detached dwelling in
have the net effect of en- Toronto, homebuyers were
abling municipalities to paying an additional
Happy Holidays
avoid raising their overall $101,526 in charges. For the
property taxes, which average single detached
should be covering the costs dwelling in Ottawa, home-
of hard services used by the buyers were paying $54,334
whole community.” for all these taxes, fees, Wishing Everyone in the community a
Laberge also noted that levies and charges.
DCs are only one of the The report takes a closer
safe and happy Holiday Season from
multiple taxes, fees, levies look at the categories for
the members, staff, and Board at
and charges that impact each charge. Ontario has
homebuyers and renters. five of the six highest mu-
The Barrie Construction Association
These range from provincial nicipalities in terms of DCs:
sales tax and federal GST, to Hamilton, Waterloo, Missis-
fees for specific develop- sauga, Vaughan, and Ot-
ment approvals and building tawa. For DCs, Vaughan
permits. These all get topped the list with $28,825.
stacked onto the costs of Ottawa charges were
156 Victoria St., Barrie ON L4N 2J4
building a home and can $21,652.
amount to a substantial por- Laberge said that histori
705-726-5864 fax: 705-726-4649
-
tion of the total house price. cally, there has been a ten-
“Obviously, that has an im- dency to add more and more bcaadmin@barrieca.com
pact on who is able to buy a capital items to develop-
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