Development Charges Act, 1997, S.O. 1997, c. 27

CONTENTS PART I DEFINITIONS 1. Definitions PART II DEVELOPMENT CHARGES Development Charges 2. Development charges 3. Limited exemption 4. Exemption for industrial development 4.1 Exemption for affordable and attainable residential units 4.2 Exemption for non-profit housing development 4.3 Exemption for inclusionary zoning residential units 4.4 Exemption for long-term care home development 4.5 Exemption for non-profit retirement home development 5. Determination of development charges 5.1 Toronto-York subway extension 5.1.1 Yonge North subway extension 5.2 Prescribed services 5.3 Land acquisition class 6. Contents of by-law 7. Class of services 8. Commencement of development charge by-law 9. Duration of development charge by-law 9.1 Same, transitional matters 9.2 Special rule re emergency declaration Process before passing By-law 10. Background study 11. By-law within one year after study 12. Public meeting before by-law passed Appeal of By-law 13. Notice of by-law and time for appeal 14. Appeal of by-law after passed 15. Clerk’s duties on appeal 16. Tribunal hearing of appeal 17. When Tribunal ordered repeals, amendments effective 18. Refunds, if Tribunal repeals by-law, etc. Process and Appeals for Amendments to By-laws 19. Application of other sections to amendments Complaints about Development Charges 20. Complaint to council of municipality 21. Notice of decision and time for appeal 22. Appeal of council’s decision 23. Clerk’s duties on appeal 24. Tribunal hearing of appeal 25. Refund if development charge reduced Collection of Development Charges 26. When development charge is payable 26.1 Certain types of development, when charge payable 26.2 When amount of development charge is determined 26.3 Maximum interest rate 27. Agreement, early or late payment 28. Withholding of permit until charge paid 29. Upper-tier municipalities, development charges 30. If upper-tier issues building permits 31. Agreement, upper-tier to collect charges 32. Unpaid charges added to taxes Reserve Funds and the Use of Development Charges 33. Reserve funds 33.1 Reserve funds — transition, upper-tier municipalities 34. Development charges paid into reserve funds 35. Use of reserve funds 36. Municipality may borrow from reserve fund 37. Exclusions Credits 38. Credits for work 39. Credit relates to service for which work done 40. Transfer of credits 41. Use of a credit Miscellaneous 42. Registration of by-law 43. Statement of treasurer PART III FRONT-ENDING AGREEMENTS Front-ending Agreements 44. Front-ending agreement 45. Contents of agreements Objections to Agreements 46. Notice of agreement and time for objections 47. Objection to agreement 48. Clerk’s duties if objection 49. Tribunal hearing of objection 50. Objections to amendments Miscellaneous 51. When agreements in force 52. Non-parties bound by agreement 53. Building permits withheld until amounts paid 54. Use of money received under an agreement 55. Credits 56. Registration of agreement 57. Notice to other tier PART IV GENERAL 59. Planning Act, ss. 51, 53 59.1 No additional levies 60. Regulations 60.1 Regulations respecting transition, 2019 amendments PART V TRANSITIONAL RULES 61. Interpretation 62. By-laws under the old Act 63. Reserve funds under the old Act 64. Credits under old section 13, ineligible services 65. Credits under old section 13, eligible services 66. Debt under the old Act for eligible services 67. Agreements to pay early or late 68. Regulations, transition PART I DEFINITIONS Definitions 1 In this Act, “area municipality” means a lower-tier municipality; (“municipalité de secteur”) “development” includes redevelopment; (“aménagement”) “development charge by-law” means a by-law made under section 2; (“règlement de redevances d’aménagement”) “front-ending agreement” means an agreement under section 44; (“accord initial”) “local board” means a local board as defined in section 1 of the Municipal Affairs Act other than a board as defined in subsection 1 (1) of the Education Act. (“conseil local”) “prescribed” means prescribed by the regulations; (“prescrit”) “regulations” means the regulations made under this Act; (“règlements”) “rental housing development” means development of a building or structure with four or more residential units all of which are intended for use as rented residential premises; (“aménagement de logements locatifs”) “waste diversion services” means services related to waste management, but not including, (a) landfill sites and services, and (b) facilities and services for the incineration of waste. (“services de réacheminement des déchets”) 1997, c. 27, s. 1; 2002, c. 17, Sched. F, Table; 2015, c. 26, s. 1; 2019, c. 9, Sched. 3, s. 1; 2022, c. 21, Sched. 3, s. 1. Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003 2015, c. 26, s. 1 - 01/01/2016 2019, c. 9, Sched. 3, s. 1 - 06/06/2019 2022, c. 21, Sched. 3, s. 1 - 28/11/2022 PART II DEVELOPMENT CHARGES Development Charges Development charges 2 (1) The council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the by-law applies. 1997, c. 27, s. 2 (1). What development can be charged for (2) A development charge may be imposed only for development that requires, (a) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; (b) the approval of a minor variance under section 45 of the Planning Act; (c) a conveyance of land to which a by-law passed under subsection 50 (7) of the Planning Act applies; (d) the approval of a plan of subdivision under section 51 of the Planning Act; (e) a consent under section 53 of the Planning Act; (f) the approval of a description under section 9 of the Condominium Act, 1998; or (g) the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure. 1997, c. 27, s. 2 (2); 2015, c. 26, s. 2 (1); 2015, c. 28, Sched. 1, s. 148. Same (3) An action mentioned in clauses (2) (a) to (g) does not satisfy the requirements of subsection (2) if the only effect of the action is to permit the enlargement of an existing residential unit. 2022, c. 21, Sched. 3, s. 2 (1). Exemption for residential units in existing rental residential buildings (3.1) The creation of the greater of the following in an existing rental residential building, which contains four or more residential units, is exempt from development charges: 1. One residential unit. 2. 1 per cent of the existing residential units. 2022, c. 21, Sched. 3, s. 2 (1). Exemption for residential units in existing houses (3.2) The creation of any of the following is exempt from development charges: 1. A second residential unit in an existing detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the existing detached house, semi-detached house or rowhouse cumulatively contain no more than one residential unit. 2. A third residential unit in an existing detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the existing detached house, semi-detached house or rowhouse contains any residential units. 3. One residential unit in a building or structure ancillary to an existing detached house, semi-detached house or rowhouse on a parcel of land, if the existing detached house, semi-detached house or rowhouse contains no more than two residential units and no other building or structure ancillary to the existing detached house, semi-detached house or rowhouse contains any residential units. 2022, c. 21, Sched. 3, s. 2 (1); 2023, c. 10, Sched. 3, s. 1 (1). Exemption for additional residential units in new residential buildings (3.3) The creation of any of the following is exempt from development charges: 1. A second residential unit in a new detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the new detached house, semi-detached house or rowhouse cumulatively will contain no more than one residential unit. 2. A third residential unit in a new detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units. 3. One residential unit in a building or structure ancillary to a new detached house, semi-detached house or rowhouse on a parcel of land, if the new detached house, semi-detached house or rowhouse contains no more than two residential units and no other building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units. 2022, c. 21, Sched. 3, s. 2 (1); 2023, c. 10, Sched. 3, s. 1 (2). What services can be charged for (4) A development charge by-law may impose development charges to pay for increased capital costs required because of increased needs for the following services only: 1. Water supply services, including distribution and treatment services. 2. Waste water services, including sewers and treatment services. 3. Storm water drainage and control services. 4. Services related to a highway as defined in subsection 1 (1) of the Municipal Act, 2001 or subsection 3 (1) of the City of Toronto Act, 2006, as the case may be. 5. Electrical power services. 6. Toronto-York subway extension, as defined in subsection 5.1 (1). 6.1 Yonge North subway extension, as defined in subsection 5.1.1 (1). 7. Transit services other than the Toronto-York subway extension and the Yonge North subway extension. 8. Waste diversion services. 9. Policing services. 10. Fire protection services. 11. Ambulance services. 12. Services provided by a board within the meaning of the Public Libraries Act. 13. Services related to long-term care. 14. Parks and recreation services, but not the acquisition of land for parks. 15. Services related to public health. 16. Child care and early years programs and services within the meaning of Part VI of the Child Care and Early Years Act, 2014 and any related services. 17. Repealed: 2022, c. 21, Sched. 3, s. 2 (2). 18. Services related to proceedings under the Provincial Offences Act, including by-law enforcement services and municipally administered court services. 19. Services related to emergency preparedness. 20. Services related to airports, but only in the Regional Municipality of Waterloo. 21. Additional services as prescribed. 2020, c. 18, Sched. 3, s. 1 (2); 2021, c. 34, Sched. 7, s. 1; 2022, c. 21, Sched. 3, s. 2 (2). Deemed amendment of by-law (4.0.1) If a by-law under this section imposes development charges to pay for increased capital costs required because of increased needs for housing services, the by-law is deemed to be amended to be consistent with subsection (4) as it reads on the day subsection 2 (2) of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 2 (3). Development charge — relationship to community benefits charge (4.1) For greater certainty, nothing in this Act prevents a community benefits charge under section 37 of the Planning Act from being imposed with respect to the services listed in subsection (4), provided that the capital costs that are intended to be funded by the community benefits charge are not capital costs that are intended to be funded under a development charge by-law. 2020, c. 18, Sched. 3, s. 1 (2). Local services (5) A development charge by-law may not impose development charges with respect to local services described in clauses 59 (2) (a) and (b). 1997, c. 27, s. 2 (5). Services can be outside the municipality (6) A development charge by-law may impose development charges with respect to services that are provided outside the municipality. 1997, c. 27, s. 2 (6). Application of by-law (7) A development charge by-law may apply to the entire municipality or only part of it. 1997, c. 27, s. 2 (7). Multiple by-laws allowed (8) More than one development charge by-law may apply to the same area. 1997, c. 27, s. 2 (8). Area rating, prescribed areas and services (9) Despite subsection (7), a development charge by-law dealing with an area that is prescribed for the purposes of this subsection and with a service that is prescribed with respect to the prescribed area for the purposes of this subsection shall apply only to the prescribed area and not to any other part of the municipality. 2015, c. 26, s. 2 (3). Transition (10) Subsection (9) does not apply to a development charge by-law that was passed before the relevant area and the relevant service were prescribed for the purposes of that subsection. 2015, c. 26, s. 2 (3). Area rating, prescribed municipalities, services and criteria (11) The following rules apply to a municipality that is prescribed for the purposes of this subsection: 1. With respect to a service that is prescribed for the purposes of this subsection, the council shall pass different development charge by-laws for different parts of the municipality. 2. The parts of the municipality to which different development charge by-laws are to apply shall be identified in accordance with the prescribed criteria. 2015, c. 26, s. 2 (3). Transition (12) Subsection (11) does not apply to a development charge by-law that was passed before the municipality and the relevant service were prescribed for the purposes of that subsection. 2015, c. 26, s. 2 (3). Section Amendments with date in force (d/m/y) 2015, c. 26, s. 2 (1-3) - 01/01/2016; 2015, c. 28, Sched. 1, s. 148 - 03/12/2015 2016, c. 25, Sched. 1, s. 1 - no effect - see 2019, c. 9, Sched. 3, s. 15 (1) - 06/06/2019 2019, c. 9, Sched. 3, s. 2 - no effect - see 2020, c. 18, Sched. 3, s. 12 - 21/07/2020 2020, c. 18, Sched. 3, s. 1 (1, 2) - 18/09/2020 2021, c. 34, Sched. 7, s. 1 (1, 2) - 01/01/2022 2022, c. 21, Sched. 3, s. 2 (1-3) - 28/11/2022 2023, c. 10, Sched. 3, s. 1 (1, 2) - 08/06/2023 Limited exemption 3 No land, except land owned by and used for the purposes of a municipality or a board as defined in subsection 1 (1) of the Education Act, is exempt from a development charge by reason only that it is exempt from taxation under section 3 of the Assessment Act. 1997, c. 27, s. 3. Exemption for industrial development 4 (1) If a development includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that is payable in respect of the enlargement is determined in accordance with this section. 1997, c. 27, s. 4 (1). Enlargement 50 per cent or less (2) If the gross floor area is enlarged by 50 per cent or less, the amount of the development charge in respect of the enlargement is zero. 1997, c. 27, s. 4 (2). Enlargement more than 50 per cent (3) If the gross floor area is enlarged by more than 50 per cent the amount of the development charge in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: 1. Determine the amount by which the enlargement exceeds 50 per cent of the gross floor area before the enlargement. 2. Divide the amount determined under paragraph 1 by the amount of the enlargement. 1997, c. 27, s. 4 (3). Exemption for affordable and attainable residential units Definitions 4.1 (1) In this section, “affordable residential unit” means a residential unit that meets the criteria set out in subsection (2) or (3); (“unité d’habitation abordable”) “Affordable Residential Units bulletin” means the bulletin entitled the “Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin”, as it is amended from time to time, that is published by the Minister of Municipal Affairs and Housing on a website of the Government of Ontario; (“bulletin relatif aux unités d’habitation abordables”) “attainable residential unit” means a residential unit that meets the criteria set out in subsection (4). (“unité d’habitation à la portée du revenu”) 2022, c. 21, Sched. 3, s. 3 ; 2023, c. 18, Sched. 1, s. 1 (1). Affordable residential unit, rented (2) A residential unit intended for use as a rented residential premises shall be considered to be an affordable residential unit if it meets the following criteria: 1. The rent is no greater than the lesser of, i. the income-based affordable rent for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (5), and ii. the average market rent identified for the residential unit set out in the Affordable Residential Units bulletin. 2. The tenant is dealing at arm’s length with the landlord. 2022, c. 21, Sched. 3, s. 3; 2023, c. 18, Sched. 1, s. 1 (2). Affordable residential unit, ownership (3) A residential unit not intended for use as a rented residential premises shall be considered to be an affordable residential unit if it meets the following criteria: 1. The price of the residential unit is no greater than the lesser of, i. the income-based affordable purchase price for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (6), and ii. 90 per cent of the average purchase price identified for the residential unit set out in the Affordable Residential Units bulletin. 2. The residential unit is sold to a person who is dealing at arm’s length with the seller. 2022, c. 21, Sched. 3, s. 3; 2023, c. 18, Sched. 1, s. 1 (3). Attainable residential unit (4) A residential unit shall be considered to be an attainable residential unit if it meets the following criteria: 1. The residential unit is not an affordable residential unit. 2. The residential unit is not intended for use as a rented residential premises. 3. The residential unit was developed as part of a prescribed development or class of developments. 4. The residential unit is sold to a person who is dealing at arm’s length with the seller. 5. Such other criteria as may be prescribed. 2022, c. 21, Sched. 3, s. 3. Rent based on income (5) For the purposes of subparagraph 1 i of subsection (2), in identifying the income-based affordable rent applicable to a residential unit, the Minister of Municipal Affairs and Housing shall, (a) determine the income of a household that, in the Minister’s opinion, is at the 60th percentile of gross annual incomes for renter households in the applicable local municipality; and (b) identify the rent that, in the Minister’s opinion, is equal to 30 per cent of the income of the household referred to in clause (a). 2023, c. 18, Sched. 1, s. 1 (4). Purchase price based on income (6) For the purposes of subparagraph 1 i of subsection (3), in identifying the income-based affordable purchase price applicable to a residential unit, the Minister of Municipal Affairs and Housing shall, (a) determine the income of a household that, in the Minister’s opinion, is at the 60th percentile of gross annual incomes for households in the applicable local municipality; and (b) identify the purchase price that, in the Minister’s opinion, would result in annual accommodation costs equal to 30 per cent of the income of the household referred to in clause (a). 2023, c. 18, Sched. 1, s. 1 (4). Arm’s length (7) For the purposes of this section, in the determination of whether two or more persons are dealing at arm’s length, section 251 of the Income Tax Act (Canada) applies with necessary modifications. 2022, c. 21, Sched. 3, s. 3. Affordable residential unit, exemption from development charges (8) The creation of a residential unit that is intended to be an affordable residential unit for a period of 25 years or more from the time that the unit is first rented or sold is exempt from development charges. 2022, c. 21, Sched. 3, s. 3. Same, agreement (9) A person who, but for subsection (8), would be required to pay a development charge and the local municipality shall enter into an agreement that requires the residential unit to which subsection (8) applies to be an affordable residential unit for a period of 25 years. 2022, c. 21, Sched. 3, s. 3. Attainable residential unit, exemption from development charges (10) The creation of a residential unit that is intended to be an attainable residential unit when the unit is first sold is exempt from development charges. 2022, c. 21, Sched. 3, s. 3. Same, agreement (11) A person who, but for subsection (10), would be required to pay a development charge and the local municipality shall enter into an agreement that requires the residential unit to which subsection (10) applies to be an attainable residential unit at the time it is sold. 2022, c. 21, Sched. 3, s. 3. Standard form agreement (12) The Minister of Municipal Affairs and Housing may establish standard forms of agreement that shall be used for the purposes of subsection (9) or (11). 2022, c. 21, Sched. 3, s. 3. Registration of agreement (13) An agreement entered into under subsection (9) or (11) may be registered against the land to which it applies and the municipality is entitled to enforce the provisions of the agreement against the owner and, subject to the Registry Act and the Land Titles Act, against any and all subsequent owners of the land. 2022, c. 21, Sched. 3, s. 3. Transition (14) Subsection (8) does not apply with respect to a development charge that is payable before the day section 3 of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 3. Non-application of Legislation Act, 2006 (15) Part III (Regulations) of the Legislation Act, 2006 does not apply to, (a) a bulletin referred to in this section; or (b) a standard form of agreement established under subsection (12). 2022, c. 21, Sched. 3, s. 3. Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 3 - 01/06/2024 2023, c. 18, Sched. 1, s. 1 (1-4) - 01/06/2024 Exemption for non-profit housing development Definition 4.2 (1) In this section, “non-profit housing development” means the development of a building or structure intended for use as a residential premises and developed by, (a) a corporation to which the Not-for-Profit Corporations Act, 2010 applies, that is in good standing under that Act and whose primary object is to provide housing, (b) a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that Act and whose primary object is to provide housing, or (c) a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act. 2022, c. 21, Sched. 3, s. 4. Exemption (2) A non-profit housing development is exempt from development charges. 2022, c. 21, Sched. 3, s. 4. Transition (3) Subsection (2) does not apply with respect to a development charge that is payable before the day section 4 of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 4. Same (4) For greater certainty, subsection (2) applies to future instalments that would have been payable in accordance with section 26.1 after the day section 4 of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 4. Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 4 - 28/11/2022 Exemption for inclusionary zoning residential units Exemption 4.3 (1) The creation of a residential unit described in subsection (2) is exempt from development charges unless a development charge is payable with respect to the residential unit before the day section 4 of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 4. Application (2) Subsection (1) applies in respect of residential units that are affordable housing units required to be included in a development or redevelopment pursuant to a by-law passed under section 34 of the Planning Act to give effect to the policies described in subsection 16 (4) of that Act. 2022, c. 21, Sched. 3, s. 4. Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 4 - 28/11/2022 Exemption for long-term care home development 4.4 (1) The development of any part of a building or structure intended for use as a long-term care home, as defined in subsection 2 (1) of the Fixing Long-Term Care Home Act, 2021, is exempt from development charges. 2025, c. 9, Sched. 4, s. 1. Transition (2) Subsection (1) does not apply with respect to a development charge that is payable before the day section 1 of Schedule 4 to the Protect Ontario by Building Faster and Smarter Act, 2025 comes into force. 2025, c. 9, Sched. 4, s. 1. Same (3) For greater certainty, subsection (1) applies to future instalments that would have been payable in accordance with section 26.1 after the day section 1 of Schedule 4 to the Protect Ontario by Building Faster and Smarter Act, 2025 comes into force. 2025, c. 9, Sched. 4, s. 1. Section Amendments with date in force (d/m/y) 2025, c. 9, Sched. 4, s. 1 - 05/06/2025 Exemption for non-profit retirement home development Definition 4.5 (1) In this section, “non-profit retirement home development” means the development of a building or structure intended for use as a retirement home, as defined in subsection 2 (1) of the Retirement Homes Act, 2010, and developed by, (a) a corporation to which the Not-for-Profit Corporations Act, 2010 applies, that is in good standing under that Act, or (b) a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that Act. 2026, c. 8, Sched. 3, s. 1. Exemption (2) A non-profit retirement home development is exempt from development charges. 2026, c. 8, Sched. 3, s. 1. Transition (3) Subsection (2) does not apply with respect to a development charge that is payable before the day section 1 of Schedule 3 to the Building Homes and Improving Transportation Infrastructure Act, 2026 comes into force. 2026, c. 8, Sched. 3, s. 1. Same (4) For greater certainty, subsection (2) applies to future instalments that would have been payable in accordance with section 26.1 after the day section 1 of Schedule 3 to the Building Homes and Improving Transportation Infrastructure Act, 2026 comes into force. 2026, c. 8, Sched. 3, s. 1. Section Amendments with date in force (d/m/y) 2026, c. 8, Sched. 3, s. 1 - 02/06/2026 Determination of development charges 5 (1) The following is the method that must be used, in developing a development charge by-law, to determine the development charges that may be imposed: 1. The anticipated amount, type and location of development, for which development charges can be imposed, must be estimated. 2. The increase in the need for service attributable to the anticipated development must be estimated for each service to which the development charge by-law would relate. 3. The estimate under paragraph 2 may include an increase in need only if the council of the municipality has indicated that it intends to ensure that such an increase in need will be met. The determination as to whether a council has indicated such an intention may be governed by the regulations. 4. The estimate under paragraph 2 must not include an increase that would result in the level of service exceeding the average level of that service provided in the municipality over the 15-year period immediately preceding the preparation of the background study required under section 10. How the level of service and average level of service is determined may be governed by the regulations. 5. The increase in the need for service attributable to the anticipated development must be reduced by the part of that increase that can be met using the municipality’s excess capacity, other than excess capacity that the council of the municipality has indicated an intention would be paid for by new development. How excess capacity is determined and how to determine whether a council has indicated an intention that excess capacity would be paid for by new development may be governed by the regulations. 6. The increase in the need for service must be reduced by the extent to which an increase in service to meet the increased need would benefit existing development. The extent to which an increase in service would benefit existing development may be governed by the regulations. 7. The capital costs necessary to provide the increased services must be estimated. The capital costs must be reduced by the reductions set out in subsection (2). What is included as a capital cost is set out in subsection (3). How the capital costs are estimated may be governed by the regulations. 8. Repealed: 2019, c. 9, Sched. 3, s. 3 (2). 9. Rules must be developed to determine if a development charge is payable in any particular case and to determine the amount of the charge, subject to the limitations set out in subsection (6). 10. The rules may provide for full or partial exemptions for types of development and for the phasing in of development charges. The rules may also provide for the indexing of development charges based on the prescribed index. 1997, c. 27, s. 5 (1); 2019, c. 9, Sched. 3, s. 3 (1, 2); 2022, c. 21, Sched. 3, s. 5 (1). Transition, par. 4 of subs. (1) (1.1) For greater certainty, paragraph 4 of subsection (1), as it read immediately before the day subsection 5 (1) of Schedule 3 to the More Homes Built Faster Act, 2022 came into force, continues to apply in respect of a development charge by-law in force on that day. 2022, c. 21, Sched. 3, s. 5 (2). Capital costs, deductions (2) The capital costs, determined under paragraph 7 of subsection (1), must be reduced, in accordance with the regulations, to adjust for capital grants, subsidies and other contributions made to a municipality or that the council of the municipality anticipates will be made in respect of the capital costs. 1997, c. 27, s. 5 (2). Capital costs, inclusions (3) Subject to the regulations, the following are capital costs for the purposes of paragraph 7 of subsection (1) if they are incurred or proposed to be incurred by a municipality or a local board directly or by others on behalf of, and as authorized by, a municipality or local board: 1. Costs to acquire land or an interest in land, including a leasehold interest. 2. Costs to improve land. 3. Costs to acquire, lease, construct or improve buildings and structures. 4. Costs to acquire, lease, construct or improve facilities including, i. rolling stock with an estimated useful life of seven years or more, ii. furniture and equipment, other than computer equipment, and iii. materials acquired for circulation, reference or information purposes by a board within the meaning of the Public Libraries Act. 5. Costs to undertake studies in connection with any of the matters referred to in paragraphs 1 to 4. 6. Costs of the development charge background study required under section 10. 7. Interest on money borrowed to pay for costs described in paragraphs 1 to 4. 1997, c. 27, s. 5 (3); 2020, c. 18, Sched. 3, s. 2; 2022, c. 21, Sched. 3, s. 5 (3, 4); 2024, c. 16, Sched. 6, s. 1 (1); 2025, c. 9, Sched. 4, s. 2. (3.1) Repealed: 2024, c. 16, Sched. 6, s. 1 (2). Capital costs, leases, etc. (4) Only the capital component of costs to lease anything or to acquire a leasehold interest is included as a capital cost under subsection (3). 1997, c. 27, s. 5 (4). (5) Repealed: 2019, c. 9, Sched. 3, s. 3 (5). Restriction on rules (6) The rules developed under paragraph 9 of subsection (1) to determine if a development charge is payable in any particular case and to determine the amount of the charge are subject to the following restrictions: 1. The rules must be such that the total of the development charges that would be imposed upon the anticipated development is less than or equal to the capital costs determined under paragraphs 2 to 8 of subsection (1) for all the services to which the development charge by-law relates. 2. If the rules expressly identify a type of development they must not provide for the type of development to pay development charges that exceed the capital costs, determined under paragraphs 2 to 8 of subsection (1), that arise from the increase in the need for services attributable to the type of development. However, it is not necessary that the amount of the development charge for a particular development be limited to the increase in capital costs, if any, that are attributable to that particular development. 3. If the development charge by-law will exempt a type of development, phase in a development charge, or otherwise provide for a type of development to have a lower development charge than is allowed, the rules for determining development charges may not provide for any resulting shortfall to be made up through higher development charges for other development. 4. Repealed: 2024, c. 16, Sched. 6, s. 1 (3). 1997, c. 27, s. 5 (6); 2022, c. 21, Sched. 3, s. 5 (6); 2024, c. 16, Sched. 6, s. 1 (3). Transition, repeal of subss. (7) and (8) (7) Subsections (7) and (8) as they read immediately before the day subsection 1 (4) of Schedule 6 to the Cutting Red Tape to Build More Homes Act, 2024 came into force continue to apply to a development charge imposed on or after November 28, 2022 and before the day subsection 1 (4) of Schedule 6 to the Cutting Red Tape to Build More Homes Act, 2024 came into force. 2024, c. 16, Sched. 6, s. 1 (4). Same (8) For the purposes of subsection (7), a development charge is deemed to be imposed on the day referred to in subsection 26.2 (1) that applies to the development charge. 2024, c. 16, Sched. 6, s. 1 (4). (9) Repealed: 2024, c. 16, Sched. 6, s. 1 (4). Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003 2006, c. 32, Sched. C, s. 12 (1) - 01/01/2007; 2006, c. 33, Sched. H, s. 1 - 04/05/2007 2015, c. 26, s. 3 - 01/01/2016 2018, c. 3, Sched. 5, s. 16 - no effect - see 2019, c. 1, Sched. 3, s. 5 - 26/03/2019 2019, c. 1, Sched. 4, s. 14 - no effect - see 2019, c. 9, Sched. 3, s. 15 (2) - 06/06/2019; 2019, c. 9, Sched. 3, s. 3 (1, 2, 5) - 18/09/2020; 2019, c. 9, Sched. 3, s. 3 (3) - no effect - see 2020, c. 18, Sched. 3, s. 12 - 21/07/2020; 2019, c. 9, Sched. 3, s. 3 (4) - 06/06/2019 2020, c. 18, Sched. 3, s. 2 - 18/09/2020 2022, c. 21, Sched. 3, s. 5 (1-7) - 28/11/2022 2024, c. 16, Sched. 6, s. 1 (1-4) - 06/06/2024 2025, c. 9, Sched. 4, s. 2 (1, 2) - 05/06/2025 Toronto-York subway extension Definition 5.1 (1) In this section, “Toronto-York subway extension” means an extension of the subway service located in the City of Toronto beyond its terminus at Downsview subway station further north in the City of Toronto and into The Regional Municipality of York, and works and equipment directly related to that extension. 2006, c. 33, Sched. H, s. 2. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for the Toronto-York subway extension. 2006, c. 33, Sched. H, s. 2. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for the Toronto-York subway extension shall not exceed the planned level of service over the 10-year period immediately following the preparation of the background study required under section 10. 2006, c. 33, Sched. H, s. 2. Regulations (4) The method of estimating the planned level of service for the Toronto-York subway extension and the criteria to be used in doing so may be prescribed by regulation. 2006, c. 33, Sched. H, s. 2. Section Amendments with date in force (d/m/y) 2006, c. 33, Sched. H, s. 2 - 04/05/2007 Yonge North subway extension Definition 5.1.1 (1) In this section, “Yonge North subway extension” means an extension of the subway service located in the City of Toronto beyond its terminus at Finch subway station further north in the City of Toronto and into The Regional Municipality of York, and works and equipment directly related to that extension. 2021, c. 34, Sched. 7, s. 2. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for the Yonge North subway extension. 2021, c. 34, Sched. 7, s. 2. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for the Yonge North subway extension shall not exceed the planned level of service over the 20-year period immediately following the preparation of the background study required under section 10. 2021, c. 34, Sched. 7, s. 2. Regulations (4) The method of estimating the planned level of service for the Yonge North subway extension and the criteria to be used in doing so may be prescribed by regulation. 2021, c. 34, Sched. 7, s. 2. Section Amendments with date in force (d/m/y) 2021, c. 34, Sched. 7, s. 2 - 01/01/2022 Prescribed services Definition 5.2 (1) In this section, “prescribed service” means a service that is prescribed for the purposes of this section. 2015, c. 26, s. 4. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for a prescribed service. 2015, c. 26, s. 4. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for a prescribed service shall not exceed the planned level of service over the 10-year period immediately following the preparation of the background study required under section 10. 2015, c. 26, s. 4. Regulations (4) The method of estimating the planned level of service for a prescribed service and the criteria to be used in doing so may be prescribed. 2015, c. 26, s. 4. Section Amendments with date in force (d/m/y) 2015, c. 26, s. 4 - 01/01/2016 Land acquisition class Definition 5.3 (1) In this section, “land acquisition class” means the class required by subsection 7 (3.1). 2025, c. 14, Sched. 3, s. 1. Provision does not apply (2) Paragraph 4 of subsection 5 (1) does not apply in determining the estimate for the increase in the need for the land acquisition class. 2025, c. 14, Sched. 3, s. 1. Applicable restriction (3) For the purposes of section 5, the estimate for the increase in the need for the land acquisition class shall not include an increase in the need for service that relates to a time after the 10-year period immediately following the preparation of the background study unless the estimate is in relation to a service set out in paragraph 1, 2, 3, 4, 5, 7, 9 or 10 of subsection 2 (4). 2025, c. 14, Sched. 3, s. 1. Section Amendments with date in force (d/m/y) 2025, c. 14, Sched. 3, s. 1 - 27/11/2025 Contents of by-law 6 A development charge by-law must set out the following: 1. The rules developed under paragraph 9 of subsection 5 (1) for determining if a development charge is payable in any particular case and for determining the amount of the charge. 2. An express statement indicating how, if at all, the rules provide for exemptions, for the phasing in of development charges and for the indexing of development charges. 3. How the rules referred to in paragraph 1 apply to the redevelopment of land. 4. The area of the municipality to which the by-law applies. 1997, c. 27, s. 6. Class of services 7 (1) Subject to subsection (3.1), a development charge by-law may provide for any service listed in subsection 2 (4) or the capital costs listed in subsection 5 (3) in respect of those services to be included in a class set out in the by-law. 2020, c. 18, Sched. 3, s. 3; 2025, c. 14, Sched. 3, s. 2 (1). Composition of class (2) A class may be composed of any number or combination of services and may include parts or portions of the services listed in subsection 2 (4) or parts or portions of the capital costs listed in subsection 5 (3) in respect of those services. 2020, c. 18, Sched. 3, s. 3. Studies (3) For greater certainty, a development charge by-law may provide for a class consisting of studies in respect of any service listed in subsection 2 (4) whose capital costs are described in paragraphs 5 and 6 of subsection 5 (3). 2020, c. 18, Sched. 3, s. 3. Land acquisition (3.1) A development charge by-law that imposes development charges in respect of capital costs described in paragraph 1 of subsection 5 (3) shall provide for a class consisting only of those capital costs, but that class is not required to include capital costs in respect of services described in paragraphs 6 and 6.1 of subsection 2 (4). 2025, c. 14, Sched. 3, s. 2 (2). Effect of class (4) A class of service set out in a development charge by-law is deemed to be a single service for the purposes of this Act in relation to reserve funds, the use of money from reserve funds and credits. 2020, c. 18, Sched. 3, s. 3. Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 4 - no effect - see 2020, c. 18, Sched. 3, s. 12 - 21/07/2020 2020, c. 18, Sched. 3, s. 3 - 18/09/2020 2025, c. 14, Sched. 3, s. 2 (1, 2) - 27/11/2025 Commencement of development charge by-law 8 A development charge by-law or a by-law amending it comes into force on the day it is passed or the day specified in the by-law, whichever is later. 1997, c. 27, s. 8. Duration of development charge by-law 9 (1) Unless it expires or is repealed earlier, a development charge by-law expires 10 years after the day it comes into force. 1997, c. 27, s. 9 (1); 2022, c. 21, Sched. 3, s. 6 (1). Transition (1.1) For greater certainty, subsection (1), as it reads on and after the day subsection 6 (1) of Schedule 3 to the More Homes Built Faster Act, 2022 came into force, does not apply with respect to a development charge by-law that, before that day, had expired pursuant to subsection (1) as it read before that day. 2022, c. 21, Sched. 3, s. 6 (2). Council can pass new by-law (2) Subsection (1) does not prevent a council from passing a new development charge by-law. 1997, c. 27, s. 9 (2). Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 6 (1, 2) - 28/11/2022 Same, transitional matters 9.1 (1) In this section, “specified date” means the day that is two years after the day subsection 1 (2) of Schedule 3 to the COVID-19 Economic Recovery Act, 2020 comes into force. 2020, c. 18, Sched. 3, s. 4; 2022, c. 21, Sched. 3, s. 6 (1). By-law — expiry before specified date (2) Despite subsections 2 (4) and 9 (1), a development charge by-law that would expire on or after May 2, 2019 and before the specified date remains in force as it relates to any service other than the services described in paragraphs 1 to 10 of subsection 2 (4) until the earliest of, (a) the day it is repealed; (b) the day the municipality passes a community benefits charge by-law under subsection 37 (2) of the Planning Act; and (c) the specified date. 2020, c. 18, Sched. 3, s. 4. By-law — expiry on or after specified date (3) If a development charge by-law would expire on or after the specified date, the following rules apply in respect of the by-law as it relates to any service other than the services described in paragraphs 1 to 20 of subsection 2 (4): 1. Despite subsection 2 (4), the by-law continues to apply, even as it relates to the service, until the earliest of the days described in paragraph 2. 2. The days referred to in paragraph 1 are the following: i. The day the by-law is repealed. ii. In the case of a development charge by-law of a local municipality, the earlier of, A. the day the municipality passes a community benefits charge by-law under subsection 37 (2) of the Planning Act; or B. the specified date. iii. In the case of a development charge by-law of an upper-tier municipality, the specified date. 3. The by-law is deemed to have expired, as it relates to the service, on the earliest of the dates mentioned in paragraph 2. 2020, c. 18, Sched. 3, s. 4. Services prescribed under para. 21 of subs. 2 (4) (4) Subsection (3) does not apply in respect of the by-law as it relates to a service that is prescribed for the purposes of paragraph 21 of subsection 2 (4) if the service is prescribed before the day referred to in subparagraph 2 ii or iii of subsection (3), as the case may be. 2020, c. 18, Sched. 3, s. 4. Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 5 (1) - 06/06/2019; 2019, c. 9, Sched. 3, s. 5 (2, 3) - no effect - see 2020, c. 18, Sched. 3, s. 12 - 21/07/2020 2020, c. 18, Sched. 3, s. 4 - 18/09/2020 Special rule re emergency declaration By-law remains in force 9.2 (1) In this section, “specified date” means the date that is six months after the day that the emergency declared by Order in Council 518/2020 (Ontario Regulation 50/20) on March 17, 2020 pursuant to section 7.0.1 of the Emergency Management and Civil Protection Act is terminated or disallowed. 2020, c. 6, Sched. 1, s. 1. Same (2) Despite subsection 9 (1), (a) a development charge by-law that expired on or after March 17, 2020 and before the day section 1 of Schedule 1 to the Coronavirus (COVID-19) Support and Protection Act, 2020 comes into force is deemed not to have expired and shall remain in force until the earlier of the day the by-law is repealed and the specified date; and (b) a development charge by-law that expires on or after the day section 1 of Schedule 1 to the Coronavirus (COVID-19) Support and Protection Act, 2020 comes into force and before the specified date shall remain in force until the earlier of the day the by-law is repealed and the specified date. 2020, c. 6, Sched. 1, s. 1. Exception (3) Subsection (2) does not apply in respect of any part of a development charge by-law to which subsection 9.1 (2) applies. 2020, c. 6, Sched. 1, s. 1; 2020, c. 18, Sched. 3, s. 5. Section Amendments with date in force (d/m/y) 2020, c. 6, Sched. 1, s.1 - 14/04/2020; 2020, c. 18, Sched. 3, s. 5 - 18/09/2020 Process before passing By-law Background study 10 (1) Before passing a development charge by-law, the council shall complete a development charge background study. 1997, c. 27, s. 10 (1). Same (2) The development charge background study shall include, (a) the estimates under paragraph 1 of subsection 5 (1) of the anticipated amount, type and location of development; (b) the calculations under paragraphs 2 to 7 of subsection 5 (1) for each service to which the development charge by-law would relate; (c) an examination, for each service to which the development charge by-law would relate, of the long term capital and operating costs for capital infrastructure required for the service; (c.1) unless subsection 2 (9) or (11) applies, consideration of the use of more than one development charge by-law to reflect different needs for services in different areas; (c.2) an asset management plan prepared in accordance with subsection (3); and (d) such other information as may be prescribed. 1997, c. 27, s. 10 (2); 2015, c. 26, s. 5 (1); 2019, c. 9, Sched. 3, s. 6. Asset management plan (3) The asset management plan shall, (a) deal with all assets whose capital costs are proposed to be funded under the development charge by-law; (b) demonstrate that all the assets mentioned in clause (a) are financially sustainable over their full life cycle; (c) contain any other information that is prescribed; and (d) be prepared in the prescribed manner. 2015, c. 26, s. 5 (2).

Background study to be made available (4) The council shall ensure that a development charge background study is made available to the public at least 60 days prior to the passing of the development charge by-law and until the by-law expires or is repealed by posting the study on the website of the municipality or, if there is no such website, in the municipal office. 2015, c. 26, s. 5 (3). Copy to Minister (5) The council shall give a copy of the background study to the Minister of Municipal Affairs and Housing on request, by the deadline specified in the request. 2025, c. 14, Sched. 3, s. 3. Section Amendments with date in force (d/m/y) 2015, c. 26, s. 5 (1-3) - 01/01/2016 2019, c. 9, Sched. 3, s. 6 - 18/09/2020 2025, c. 14, Sched. 3, s. 3 - 27/11/2025 By-law within one year after study 11 A development charge by-law may only be passed within the one-year period following the completion of the development charge background study. 1997, c. 27, s. 11. Public meeting before by-law passed 12 (1) Before passing a development charge by-law, the council shall, (a) hold at least one public meeting; (b) give at least 20-days notice of the meeting or meetings in accordance with the regulations; and (c) ensure that the proposed by-law and the background study are made available to the public at least two weeks prior to the meeting or, if there is more than one meeting, prior to the first meeting. 1997, c. 27, s. 12 (1). Making representations (2) Any person who attends a meeting under this section may make representations relating to the proposed by-law. 1997, c. 27, s. 12 (2). Council determination is final (3) If a proposed by-law is changed following a meeting under this section, the council shall determine whether a further meeting under this section is necessary and such a determination is final and not subject to review by a court or the Ontario Land Tribunal. 1997, c. 27, s. 12 (3); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Appeal of By-law Notice of by-law and time for appeal 13 (1) The clerk of a municipality that has passed a development charge by-law shall give written notice of the passing of the by-law, and of the last day for appealing the by-law, which shall be the day that is 40 days after the day the by-law is passed. 1997, c. 27, s. 13 (1). Requirements of notice (2) Notices required under this section must meet the requirements prescribed in the regulations and shall be given in accordance with the regulations. 1997, c. 27, s. 13 (2). Same (3) Every notice required under this section must be given not later than 20 days after the day the by-law is passed. 1997, c. 27, s. 13 (3). When notice given (4) A notice required under this section shall be deemed to have been given, (a) if the notice is by publication in a newspaper, on the day that the publication occurs; (b) if the notice is given by mail, on the day that the notice is mailed. 1997, c. 27, s. 13 (4). Copy to Minister (5) The council shall give a copy of the by-law to the Minister of Municipal Affairs and Housing on request, by the deadline specified in the request. 2025, c. 14, Sched. 3, s. 4. Section Amendments with date in force (d/m/y) 2025, c. 14, Sched. 3, s. 4 - 27/11/2025 Appeal of by-law after passed 14 Any person or organization may appeal a development charge by-law to the Ontario Land Tribunal by filing with the clerk of the municipality on or before the last day for appealing the by-law, a notice of appeal setting out the objection to the by-law and the reasons supporting the objection. 1997, c. 27, s. 14; 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Clerk’s duties on appeal 15 (1) If the clerk of the municipality receives a notice of appeal on or before the last day for appealing a development charge by-law, the clerk shall compile a record that includes, (a) a copy of the by-law certified by the clerk; (b) a copy of the development charge background study; (c) an affidavit or declaration certifying that notice of the passing of the by-law and of the last day for appealing it was given in accordance with this Act; and (d) the original or a true copy of all written submissions and material received in respect of the by-law before it was passed. 1997, c. 27, s. 15 (1). Same (2) The clerk shall forward a copy of the notice of appeal and the record to the Ontario Land Tribunal within 30 days after the last day of appeal and shall provide such other information or material as the Tribunal may require in respect of the appeal. 1997, c. 27, s. 15 (2); 2021, c. 4, Sched. 6, s. 41 (2). Affidavit, declaration conclusive evidence (3) An affidavit or declaration of the clerk of a municipality that notice of the passing of the by-law and of the last day for appealing it was given in accordance with this Act is conclusive evidence of the facts stated in the affidavit or declaration. 1997, c. 27, s. 15 (3). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (2)- 01/06/2021 Tribunal hearing of appeal 16 (1) The Ontario Land Tribunal shall hold a hearing to deal with any notice of appeal of a development charge by-law forwarded by the clerk of a municipality. 1997, c. 27, s. 16 (1); 2021, c. 4, Sched. 6, s. 41 (1). Who to get notice (2) The Ontario Land Tribunal shall determine who shall be given notice of the hearing and in what manner. 1997, c. 27, s. 16 (2); 2021, c. 4, Sched. 6, s. 41 (1). Powers of Tribunal (3) After the hearing, the Ontario Land Tribunal may, (a) dismiss the appeal in whole or in part; (b) order the council of the municipality to repeal or amend the by-law in accordance with the Tribunal’s order; (c) repeal or amend the by-law in such manner as the Tribunal may determine. 2021, c. 4, Sched. 6, s. 41 (3). Limitation on powers (4) The Ontario Land Tribunal may not amend or order the amendment of a by-law so as to, (a) increase the amount of a development charge that will be payable in any particular case; (b) remove, or reduce the scope of, an exemption; (c) change a provision for the phasing in of development charges in such a way as to make a charge, or part of a charge, payable earlier; (d) change the date the by-law will expire. 1997, c. 27, s. 16 (4); 2021, c. 4, Sched. 6, s. 41 (1). Dismissal without hearing (5) Despite subsection (1), the Ontario Land Tribunal may, where it is of the opinion that the objection to the by-law set out in the notice of appeal is insufficient, dismiss the appeal without holding a full hearing after notifying the appellant and giving the appellant an opportunity to make representations as to the merits of the appeal. 1997, c. 27, s. 16 (5); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1, 3) - 01/06/2021 When Tribunal ordered repeals, amendments effective 17 The repeal or amendment of a development charge by-law by the Ontario Land Tribunal, or by the council of a municipality pursuant to an order of the Ontario Land Tribunal, shall be deemed to have come into force on the day the by-law came into force. 1997, c. 27, s. 17; 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Refunds, if Tribunal repeals by-law, etc. 18 (1) If the Ontario Land Tribunal repeals or amends a development charge by-law or orders the council of a municipality to repeal or amend a development charge by-law, the municipality shall refund, (a) in the case of a repeal, any development charge paid under the by-law; (b) in the case of an amendment, the difference between any development charge paid under the by-law and the development charge that would have been payable under the by-law as amended. 1997, c. 27, s. 18 (1); 2021, c. 4, Sched. 6, s. 41 (1). When refund due (2) If a municipality is required to make a refund under subsection (1), it shall do so, (a) if the Ontario Land Tribunal repeals or amends the by-law, within 30 days after the Tribunal’s order; (b) if the Ontario Land Tribunal orders the council of the municipality to repeal or amend the by-law, within 30 days after the repeal or amendment by the council. 1997, c. 27, s. 18 (2); 2021, c. 4, Sched. 6, s. 41 (4). Interest (3) The municipality shall pay interest on an amount it refunds at a rate not less than the prescribed minimum interest rate from the day the amount was paid to the municipality to the day it is refunded. 1997, c. 27, s. 18 (3); 2020, c. 18, Sched. 3, s. 6. Section Amendments with date in force (d/m/y) 2020, c. 18, Sched. 3, s. 6 - 18/09/2020 2021, c. 4, Sched. 6, s. 41 (1, 4) - 01/06/2021 Process and Appeals for Amendments to By-laws Application of other sections to amendments 19 (1) Sections 10 to 18 apply, with necessary modifications, to an amendment to a development charge by-law other than an amendment by, or pursuant to an order of, the Ontario Land Tribunal. 1997, c. 27, s. 19 (1); 2021, c. 4, Sched. 6, s. 41 (1). Exceptions (1.1) Subsection (1) does not apply to an amendment to a development charge by-law if the only effect of the amendment is to, (a) repeal a provision specifying the date on which the by-law expires or to amend such a provision to provide for the by-law to expire on a later date; (b) repeal a provision providing for the indexing of a development charge or to amend such a provision to provide for a development charge not to be indexed; or (c) decrease the amount of a development charge that is payable for one or more types of development in the circumstances specified in the amendment. 2025, c. 9, Sched. 4, s. 3. Notice (1.2) The clerk of a municipality that passed an amendment referred to in subsection (1.1) shall give written notice of the passing of the amendment and subsections 13 (2) to (4) apply, with necessary modifications, to the notice. 2024, c. 16, Sched. 6, s. 2 (2). (1.3), (1.4) Repealed: 2024, c. 16, Sched. 6, s. 2 (2). Limitation of Tribunal powers (2) In an appeal of an amendment to a development charge by-law, the Ontario Land Tribunal may exercise its powers only in relation to the amendment. 1997, c. 27, s. 19 (2); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 2024, c. 16, Sched. 6, s. 2 (1) - 06/06/2024; 2024, c. 16, Sched. 6, s. 2 (2) - 06/01/2025 2025, c. 9, Sched. 4, s. 3 - 05/06/2025 Complaints about Development Charges Complaint to council of municipality 20 (1) A person required to pay a development charge, or the person’s agent, may complain to the council of the municipality imposing the development charge that, (a) the amount of the development charge was incorrectly determined; (b) whether a credit is available to be used against the development charge, or the amount of the credit or the service with respect to which the credit was given, was incorrectly determined; or (c) there was an error in the application of the development charge by-law. 1997, c. 27, s. 20 (1). Time limit (2) A complaint may not be made under subsection (1) later than 90 days after the day the development charge, or any part of it, is payable. 1997, c. 27, s. 20 (2). Form of complaint (3) The complaint must be in writing, must state the complainant’s name, the address where notice can be given to the complainant and the reasons for the complaint. 1997, c. 27, s. 20 (3). Hearing (4) The council shall hold a hearing into the complaint and shall give the complainant an opportunity to make representations at the hearing. 1997, c. 27, s. 20 (4). Notice of hearing (5) The clerk of the municipality shall mail a notice of the hearing to the complainant at least 14 days before the hearing. 1997, c. 27, s. 20 (5). Council’s powers (6) After hearing the evidence and submissions of the complainant, the council may dismiss the complaint or rectify any incorrect determination or error that was the subject of the complaint. 1997, c. 27, s. 20 (6). Notice of decision and time for appeal 21 (1) The clerk of the municipality shall mail to the complainant a notice of the council’s decision, and of the last day for appealing the decision, which shall be the day that is 40 days after the day the decision is made. 1997, c. 27, s. 21 (1). Requirements of notice (2) The notice required under this section must be mailed not later than 20 days after the day the council’s decision is made. 1997, c. 27, s. 21 (2). Appeal of council’s decision 22 (1) A complainant may appeal the decision of the council of the municipality to the Ontario Land Tribunal by filing with the clerk of the municipality, on or before the last day for appealing the decision, a notice of appeal setting out the reasons for the appeal. 1997, c. 27, s. 22 (1); 2021, c. 4, Sched. 6, s. 41 (1). Additional ground (2) A complainant may also appeal to the Ontario Land Tribunal if the council of the municipality does not deal with the complaint within 60 days after the complaint is made by filing with the clerk of the municipality a notice of appeal. 1997, c. 27, s. 22 (2); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Clerk’s duties on appeal 23 (1) If a notice of appeal under subsection 22 (1) is filed with the clerk of the municipality on or before the last day for appealing a decision, the clerk shall compile a record that includes, (a) a copy of the development charge by-law certified by the clerk; (b) the original or a true copy of the complaint and all written submissions and material received in support of the complaint; (c) a copy of the council’s decision certified by the clerk; and (d) an affidavit or declaration certifying that notice of the council’s decision and of the last day for appealing it was given in accordance with this Act. 1997, c. 27, s. 23 (1). Same (2) If a notice of appeal under subsection 22 (2) is filed with the clerk of the municipality, the clerk shall compile a record that includes, (a) a copy of the development charge by-law certified by the clerk; and (b) the original or a true copy of the complaint and all written submissions and material received in support of the complaint. 1997, c. 27, s. 23 (2). Same (3) The clerk shall forward a copy of the notice of appeal and the record to the Ontario Land Tribunal within 30 days after the notice is received and shall provide such other information and material that the Tribunal may require in respect of the appeal. 1997, c. 27, s. 23 (3); 2021, c. 4, Sched. 6, s. 41 (5). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (5) - 01/06/2021 Tribunal hearing of appeal 24 (1) The Ontario Land Tribunal shall hold a hearing to deal with any notice of appeal relating to a complaint forwarded by the clerk of a municipality. 1997, c. 27, s. 24 (1); 2021, c. 4, Sched. 6, s. 41 (1). Parties (2) The parties to the appeal are the appellant and the municipality. 1997, c. 27, s. 24 (2). Notice to parties (3) The Ontario Land Tribunal shall give notice of the hearing to the parties. 1997, c. 27, s. 24 (3); 2021, c. 4, Sched. 6, s. 41 (1). Powers of Tribunal (4) After the hearing, the Ontario Land Tribunal may do anything that could have been done by the council of the municipality under subsection 20 (6). 1997, c. 27, s. 24 (4); 2021, c. 4, Sched. 6, s. 41 (1). Dismissal without hearing (5) Despite subsection (1), the Ontario Land Tribunal may, where it is of the opinion that the complaint set out in the notice of appeal is insufficient, dismiss the appeal without holding a full hearing after notifying the appellant and giving the appellant an opportunity to make representations as to the merits of the appeal. 1997, c. 27, s. 24 (5); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Refund if development charge reduced 25 (1) If a development charge that has already been paid is reduced by the council of a municipality under section 20 or by the Ontario Land Tribunal under section 24, the municipality shall immediately refund the overpayment. 1997, c. 27, s. 25 (1); 2021, c. 4, Sched. 6, s. 41 (1). Interest (2) The municipality shall pay interest on an amount it refunds at a rate not less than the prescribed minimum interest rate from the day the amount was paid to the municipality to the day it is refunded. 1997, c. 27, s. 25 (2); 2020, c. 18, Sched. 3, s. 7. Section Amendments with date in force (d/m/y) 2020, c. 18, Sched. 3, s. 7 - 18/09/2020 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Collection of Development Charges When development charge is payable 26 (1) A development charge is payable for a development upon a building permit being issued for the development unless the development charge by-law provides otherwise under subsection (2). 1997, c. 27, s. 26 (1). Multiple building permits (1.1) If a development consists of one building that requires more than one building permit, the development charge for the development is payable upon the first building permit being issued. 2015, c. 26, s. 6. Multiple phases (1.2) If a development consists of two or more phases that will not be constructed concurrently and are anticipated to be completed in different years, each phase of the development is deemed to be a separate development for the purposes of this section. 2015, c. 26, s. 6. Special case, approval of plan of subdivision (2) A municipality may, in a development charge by-law, provide that a development charge for services set out in paragraphs 1, 2, 3, 4 or 5 of subsection 2 (4) for development that requires approval of a plan of subdivision under section 51 of the Planning Act or a consent under section 53 of the Planning Act and for which a subdivision agreement or consent agreement is entered into, be payable immediately upon the parties entering into the agreement. 1997, c. 27, s. 26 (2); 2019, c. 9, Sched. 3, s. 7. Agreement prevails (3) This section does not apply in cases where there is an agreement under section 27. 1997, c. 27, s. 26 (3). Section Amendments with date in force (d/m/y) 2015, c. 26, s. 6 - 01/01/2016 2019, c. 9, Sched. 3, s. 7 - 18/09/2020 Certain types of development, when charge payable 26.1 (1) Despite section 26, a development charge in respect of any part of a development that consists of a type of development set out in subsection (2) is payable in accordance with this section. 2019, c. 9, Sched. 3, s. 8 (1). Same (2) The types of development referred to in subsection (1) are the following: 1. Rental housing development. 2. Institutional development. 3. Residential development not described in paragraph 1. 4., 5. Repealed: 2019, c. 15, Sched. 10, s. 1 (1). 2019, c. 9, Sched. 3, s. 8 (1); 2019, c. 15, Sched. 10, s. 1 (1); 2022, c. 21, Sched. 3, s. 7 (1); 2025, c. 9, Sched. 4, s. 4 (1). Annual instalments (3) A development charge in respect of any part of a development that consists of a type of development described in paragraph 1 or 2 of subsection (2) shall be paid in equal annual instalments beginning on the earlier of the date of the issuance of a permit under the Building Code Act, 1992 authorizing occupation of the building and the date the building is first occupied, and continuing on the following five anniversaries of that date. 2022, c. 21, Sched. 3, s. 7 (2); 2025, c. 9, Sched. 4, s. 4 (2). Payable on occupancy (3.1) Subject to subsection (3.2), a development charge in respect of any part of a development that consists of a type of development described in paragraph 3 of subsection (2) shall be paid in full on the earlier of, (a) the day a permit is issued under the Building Code Act, 1992 authorizing occupation of the building; and (b) the day the building is first occupied. 2025, c. 9, Sched. 4, s. 4 (3). Same, financial security (3.2) If the prescribed circumstances exist, the municipality that imposes a development charge in respect of a type of development described in paragraph 3 of subsection (2) may require the person required to pay the charge to provide an instrument to be used to secure the payment of the charge under subsection (3.1), subject to any prescribed limitations. 2025, c. 9, Sched. 4, s. 4 (3). Amount of charge (4) The amount of a development charge referred to in subsection (1) is the amount of the development charge determined in accordance with section 26.2, regardless of whether the by-law under which the amount of the development charge would be determined is no longer in effect on the date the amount is payable in accordance with this section. 2019, c. 9, Sched. 3, s. 8 (1); 2025, c. 9, Sched. 4, s. 4 (4). Notice of occupation (5) A person required to pay a development charge referred to in subsection (1) shall, unless the occupation of the building in respect of which the development charge is required is authorized by a permit under the Building Code Act, 1992, notify the municipality within five business days of the building first being occupied. 2019, c. 9, Sched. 3, s. 8 (1). Failure to provide notice (6) If a person described in subsection (5) fails to comply with that subsection, the development charge, including any interest payable in accordance with subsection (7), is payable immediately. 2019, c. 9, Sched. 3, s. 8 (1). Interest (7) A municipality may charge interest on the instalments payable under subsection (3) in accordance with this subsection, as it read before the day subsection 4 (5) of Schedule 4 to the Protect Ontario by Building Faster and Smarter Act, 2025 came into force, but only to the extent that the interest being charged had accrued before that day. 2025, c. 9, Sched. 4, s. 4 (5). Unpaid amounts added to taxes (8) Section 32 applies to instalments required by subsection (3), development charges payable under subsection (3.1) and interest charged in accordance with subsection (7), with necessary modifications. 2019, c. 9, Sched. 3, s. 8 (1); 2025, c. 9, Sched. 4, s. 4 (6). (9) Repealed: 2025, c. 9, Sched. 4, s. 4 (7). Transition, date charge payable (10) This section does not apply to a development charge that becomes payable before the day subsection 8 (1) of Schedule 3 to the More Homes, More Choice Act, 2019 comes into force. 2019, c. 9, Sched. 3, s. 8 (1). Agreement prevails (11) This section does not apply in cases where there is an agreement under section 27. 2019, c. 9, Sched. 3, s. 8 (1). Early payment in absence of agreement under s. 27 (12) For greater certainty, a person required to pay a development charge under this section may pay the charge before the day it is payable even in the absence of an agreement under section 27. 2025, c. 9, Sched. 4, s. 4 (8). Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 8 (1) - 01/01/2020; 2019, c. 15, Sched. 10, s. 1 (1-3) - 01/01/2020 2022, c. 21, Sched. 3, s. 7 (1-3) - 28/11/2022 2025, c. 9, Sched. 4, s. 4 (1-8) - 03/11/2025 When amount of development charge is determined 26.2 (1) Subject to subsection (1.1), the total amount of a development charge is the amount of the development charge that would be determined under the by-law on, (a) the day an application for an approval of development in a site plan control area under subsection 41 (4) of the Planning Act or subsection 114 (5) of the City of Toronto Act, 2006 was made in respect of the development that is the subject of the development charge; (b) if clause (a) does not apply, the day an application for an amendment to a by-law passed under section 34 of the Planning Act was made in respect of the development that is the subject of the development charge; or (c) if neither clause (a) nor clause (b) applies, (i) in the case of a development charge in respect of a development to which section 26.1 applies, the day the development charge would be payable in accordance with section 26 if section 26.1 did not apply, or (ii) in the case of a development charge in respect of a development to which section 26.1 does not apply, the day the development charge is payable in accordance with section 26. 2019, c. 9, Sched. 3, s. 8 (1); 2022, c. 21, Sched. 3, s. 8 (1). Discount, rental housing development (1.1) In the case of rental housing development, the amount determined under subsection (1) shall be reduced in accordance with the following rules: 1. A development charge for a residential unit intended for use as a rented residential premises with three or more bedrooms shall be reduced by 25 per cent. 2. A development charge for a residential unit intended for use as a rented residential premises with two bedrooms shall be reduced by 20 per cent. 3. A development charge for a residential unit intended for use as a rented residential premises not referred to in paragraph 1 or 2 shall be reduced by 15 per cent. 2022, c. 21, Sched. 3, s. 8 (2). Same, transition (1.2) Subject to subsection (1.3), subsection (1.1) does not apply in respect of a development charge for a development in respect of which a building permit was issued before the day subsection 8 (2) of Schedule 3 to the More Homes Built Faster Act, 2022 came into force. 2022, c. 21, Sched. 3, s. 8 (2). Same, exception (1.3) Despite subsection (7), paragraphs 1 to 3 of subsection (1.1) apply to any part of a development charge payable under an agreement under section 27 that is in respect of a prescribed development and that was entered into before the day that subsection 8 (2) of Schedule 3 to the More Homes Built Faster Act, 2022 came into force, other than a part of the development charge that is payable under the agreement before the day the development was prescribed for the purposes of this subsection. 2022, c. 21, Sched. 3, s. 8 (2). Same, if by-law not in effect (2) Subsection (1) applies regardless of whether the by-law under which the amount of the development charge would be determined is no longer in effect on the date the development charge is payable. 2019, c. 9, Sched. 3, s. 8 (1). Interest (3) Where clause (1) (a) or (b) applies, the municipality may charge interest on the development charge, at a rate not exceeding the maximum interest rate determined in accordance with section 26.3, from the date of the application referred to in the applicable clause to the date the development charge is payable. 2019, c. 9, Sched. 3, s. 8 (1); 2022, c. 21, Sched. 3, s. 8 (3). More than one application (4) If a development was the subject of more than one application referred to in clause (1) (a) or (b), the later one is deemed to be the applicable application for the purposes of this section. 2019, c. 9, Sched. 3, s. 8 (1). Exception, prescribed amount of time elapsed (5) Clauses (1) (a) and (b) do not apply in respect of, (a) any part of a development to which section 26.1 applies if, on the date the first building permit is issued for the development, more than 18 months has elapsed since the application referred to in clause (1) (a) or (b) was approved; or (b) any part of a development to which section 26.1 does not apply if, on the date the development charge is payable, more than 18 months has elapsed since the application referred to in clause (1) (a) or (b) was approved. 2019, c. 9, Sched. 3, s. 8 (1); 2024, c. 16, Sched. 6, s. 3 (1). Same, transition (5.1) Subsection (5) as it read before the day subsection 3 (1) of Schedule 6 to the Cutting Red Tape to Build More Homes Act, 2024 came into force continues to apply to a development in respect of which the application referred to in clause (1) (a) or (b) was approved before the day subsection 3 (1) of Schedule 6 to the Cutting Red Tape to Build More Homes Act, 2024 came into force. 2024, c. 16, Sched. 6, s. 3 (2). Exception, decrease in amount of charges payable (5.2) Clauses (1) (a) and (b) do not apply to a development charge if the total amount of all charges, including any interest charged under subsection (3), that are payable in accordance with either of those clauses exceeds the total amount of all charges that would be payable if clause (1) (c) applied. 2025, c. 9, Sched. 4, s. 5. Other charges included if paid at the same time (5.3) For the purposes of subsection (5.2), the total amount of all charges includes any other development charges in respect of the same development that are payable at the same time as the charge referred to in subsection (5.2) is payable. 2025, c. 9, Sched. 4, s. 5. Same, transition (5.4) Subsection (5.2) does not apply in respect of a development charge that is payable or, if section 26.1 did not apply, would be payable, in accordance with section 26 before the day section 5 of Schedule 4 to the Protect Ontario by Building Faster and Smarter Act, 2025 comes into force. 2025, c. 9, Sched. 4, s. 5. Transition, date of application (6) Clauses (1) (a) and (b) do not apply in the case of an application made before the day subsection 8 (1) of Schedule 3 to the More Homes, More Choice Act, 2019 comes into force. 2019, c. 9, Sched. 3, s. 8 (1). Transition, eligible services (6.1) Beginning on the day described in subsection (6.2), the total amount of a municipality’s development charge for the purposes of subsection (1) shall not include the amount of a development charge in respect of a service unless the service is listed in subsection 2 (4). 2020, c. 18, Sched. 3, s. 8. Same (6.2) The day referred to in subsection (6.1) is, (a) in the case of a local municipality, the earlier of, (i) the day the municipality passes a community benefits charge by-law under subsection 37 (2) of the Planning Act, and (ii) the specified date for the purposes of section 9.1; and (b) in the case of an upper-tier municipality, the specified date for the purposes of section 9.1. 2020, c. 18, Sched. 3, s. 8. Agreement prevails (7) This section does not apply in cases where there is an agreement under section 27. 2019, c. 9, Sched. 3, s. 8 (1). Special rule, City of Ottawa (8) If an application referred to in clause (1) (a) or (b) is made to the City of Ottawa between May 14, 2024 and the day that is 15 days after the day subsection 3 (3) of Schedule 6 to the Cutting Red Tape to Build More Homes Act, 2024 comes into force, the application shall be deemed for the purposes of this section to have been made on the day that is 16 days after the day subsection 3 (3) of Schedule 6 to the Cutting Red Tape to Build More Homes Act, 2024 comes into force. 2024, c. 16, Sched. 6, s. 3 (3). Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 8 (1) - 01/01/2020; 2019, c. 9, Sched. 3, s. 8 (2) - no effect - see 2020, c. 18, Sched. 3, s. 12 - 21/07/2020 2020, c. 18, Sched. 3, s. 8 - 18/09/2020 2022, c. 21, Sched. 3, s. 8 (1-3) - 28/11/2022 2024, c. 16, Sched. 6, s. 3 (1-3) - 06/06/2024 2025, c. 9, Sched. 4, s. 5 - 05/06/2025 Maximum interest rate 26.3 (1) In this section, “adjustment date” means January 1, April 1, July 1 or October 1; (“date de rajustement”) “average prime rate”, on a particular date, means the mean, rounded to the nearest hundredth of a percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. (“taux préférentiel moyen”) 2022, c. 21, Sched. 3, s. 9. Same (2) For the purposes of subsections 26.1 (7) and 26.2 (3), the maximum interest rate that a municipality may charge shall be determined in accordance with the following rules: 1. A base rate of interest shall be determined for April 1, 2022 and for each adjustment date after April 1, 2022 and shall be equal to the average prime rate on, i. October 15 of the previous year, if the adjustment date is January 1, ii. January 15 of the same year, if the adjustment date is April 1, iii. April 15 of the same year, if the adjustment date is July 1, and iv. July 15 of the same year, if the adjustment date is October 1. 2. The base rate of interest in effect on a particular date shall be, i. the base rate for the particular date, if the particular date is an adjustment date, and ii. the base rate for the last adjustment date before the particular date, otherwise. 3. The maximum rate of interest that may be charged, in respect of a particular day after June 1, 2022, shall be an annual interest rate that is one percentage point higher than the base rate of interest in effect for that day. 2022, c. 21, Sched. 3, s. 9. Transition (3) Subsection (2) does not apply in respect of a development charge that was payable before the day section 9 of Schedule 3 to the More Homes Built Faster Act, 2022 comes into force. 2022, c. 21, Sched. 3, s. 9. Section Amendments with date in force (d/m/y) 2022, c. 21, Sched. 3, s. 9 - 28/11/2022 Agreement, early or late payment 27 (1) A municipality may enter into an agreement with a person who is required to pay a development charge providing for all or any part of a development charge to be paid before or after it would otherwise be payable. 1997, c. 27, s. 27 (1). Amount of charge payable (2) The total amount of a development charge payable under an agreement under this section is the amount of the development charge that would be determined under the by-law on the day specified in the agreement or, if no such day is specified, at the earlier of, (a) the time the development charge or any part of it is payable under the agreement; (b) the time the development charge would have been payable in the absence of the agreement. 1997, c. 27, s. 27 (2). Interest on late payments (3) An agreement under this section may allow the municipality to charge interest, at a rate stipulated in the agreement, on that part of the development charge paid after it would otherwise be payable. 1997, c. 27, s. 27 (3). Withholding of permit until charge paid 28 Despite any other Act, a municipality is not required to issue a permit under the Building Code Act, 1992 for a development to which development charges apply unless, (a) in the case of a permit issued under subsection 8 (1) of that Act, all development charges have been paid except for any charges payable in accordance with section 26.1 of this Act or any charges that an agreement made under section 27 of this Act provides are payable after the permit is issued; or (b) in the case of any other permit issued under that Act, all development charges that are payable before the issuance of the permit have been paid. 2025, c. 9, Sched. 4, s. 6. Section Amendments with date in force (d/m/y) 2025, c. 9, Sched. 4, s. 6 - 03/11/2025 Upper-tier municipalities, development charges 29 If a development charge is imposed by an upper-tier municipality on a development in an area municipality, the following apply: 1. The treasurer of the upper-tier municipality shall certify to the treasurer of the area municipality that the charge has been imposed, the amount of the charge, the manner in which the charge is to be paid and when the charge is payable. 2. The treasurer of the area municipality shall collect the charge when it is payable and shall, unless otherwise agreed by the upper-tier municipality, pay the charge to the treasurer of the upper-tier municipality on or before the 25th day of the month following the month in which the charge is received by the area municipality. 3. If the charge is collected by the upper-tier municipality, the treasurer of the upper-tier municipality shall certify to the treasurer of the area municipality that the charge has been collected. 1997, c. 27, s. 29. If upper-tier issues building permits 30 If an upper-tier municipality issues building permits, the treasurer of each area municipality within the upper-tier municipality shall, when all development charges are paid with respect to a development in the area municipality, certify to the chief building official of the upper-tier municipality that those charges have been paid. 1997, c. 27, s. 30; 1997, c. 31, s. 146. Section Amendments with date in force (d/m/y) 1997, c. 31, s. 146 (1) - 01/01/1998 Agreement, upper-tier to collect charges 31 (1) If building permits are issued by an upper-tier municipality, the upper-tier municipality may agree with an area municipality to collect all the development charges on development in the area municipality. 1997, c. 27, s. 31 (1); 1997, c. 31, s. 146. Sections 29 and 30 (2) If an agreement is made under this section, sections 29 and 30 do not apply with respect to development in the area municipality. 1997, c. 27, s. 31 (2). Section Amendments with date in force (d/m/y) 1997, c. 31, s. 146 (1) - 01/01/1998 Unpaid charges added to taxes 32 (1) If a development charge or any part of it remains unpaid after it is payable, the amount unpaid including any interest payable in respect of it in accordance with this Act shall be added to the tax roll and shall be collected in the same manner as taxes. 1997, c. 27, s. 32 (1); 2019, c. 9, Sched. 3, s. 9. Treasurer certifies unpaid amount (2) If a development charge or any part of it imposed by an upper-tier municipality remains unpaid after it is payable, the treasurer of the upper-tier municipality shall certify to the treasurer of the area municipality in which the land is located the amount that is unpaid. 1997, c. 27, s. 32 (2). Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 9 - 01/01/2020 Reserve Funds and the Use of Development Charges Reserve funds 33 A municipality that has passed a development charge by-law shall establish a separate reserve fund for each service to which the development charge relates. 1997, c. 27, s. 33. Reserve funds — transition, upper-tier municipalities 33.1 (1) This section applies with respect to a reserve fund established by an upper-tier municipality in accordance with section 33 before the day subsection 1 (2) of Schedule 3 to the COVID-19 Economic Recovery Act, 2020 comes into force for any services other than those described in paragraphs 1 to 20 of subsection 2 (4). 2020, c. 18, Sched. 3, s. 9. Non-application, reserve fund re services prescribed under para. 21 of subs. 2 (4) (2) Despite subsection (1), this section does not apply with respect to a reserve fund established for a service that is prescribed for the purposes of paragraph 21 of subsection 2 (4) if the service is prescribed before the specified date for the purposes of section 9.1. 2020, c. 18, Sched. 3, s. 9. Deemed general capital reserve (3) The following rules apply with respect to a reserve fund to which this section applies: 1. On the specified date for the purposes of section 9.1, the reserve fund is deemed to be a general capital reserve fund for the same purposes for which the money in the reserve fund was collected. 2. Despite paragraph 1, subsection 417 (4) of the Municipal Act, 2001 and any equivalent provision of, or made under, the City of Toronto Act, 2006 do not apply with respect to the general capital reserve fund referred to in paragraph 1. 2020, c. 18, Sched. 3, s. 9. Section Amendments with date in force (d/m/y) 2020, c. 18, Sched. 3, s. 9 - 18/09/2020 Development charges paid into reserve funds 34 The municipality shall pay each development charge it collects into the reserve fund or funds to which the charge relates. 1997, c. 27, s. 34. Use of reserve funds 35 (1) The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 7 of subsection 5 (1). 1997, c. 27, s. 35; 2019, c. 9, Sched. 3, s. 10. Exception (1.1) In addition to the uses permitted by subsection (1), the money in a reserve fund established for a service may be spent on the capital costs of that service described in paragraph 1 of subsection 5 (3) provided the costs are ones determined under paragraphs 2 to 7 of subsection 5 (1) that are not paid for with money in the reserve fund established for a class required by subsection 7 (3.1). 2025, c. 14, Sched. 3, s. 5. Requirement to spend or allocate monies in reserve fund (2) Beginning in 2023 and in each calendar year thereafter, a municipality shall spend or allocate at least 60 per cent of the monies that are in a reserve fund for the following services at the beginning of the year: 1. Water supply services, including distribution and treatment services. 2. Waste water services, including sewers and treatment services. 3. Services related to a highway as defined in subsection 1 (1) of the Municipal Act, 2001 or subsection 3 (1) of the City of Toronto Act, 2006, as the case may be. 2022, c. 21, Sched. 3, s. 10. Same (3) If a service is prescribed for the purposes of this subsection, beginning in the first calendar year that commences after the service is prescribed and in each calendar year thereafter, a municipality shall spend or allocate at least 60 per cent of the monies that are in a reserve fund for the prescribed service at the beginning of the year. 2022, c. 21, Sched. 3, s. 10. Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 10 - 18/09/2020 2022, c. 21, Sched. 3, s. 10 - 28/11/2022 2025, c. 14, Sched. 3, s. 5 - 27/11/2025 Municipality may borrow from reserve fund 36 Despite section 35, a municipality may borrow money from a reserve fund but if it does so, the municipality shall repay the amount used plus interest at a rate not less than the prescribed minimum interest rate. 1997, c. 27, s. 36. Exclusions 37 (1) Subsections 418 (3) and (4) and 418.1 (14) and (15) of the Municipal Act, 2001 and any equivalent provisions of, or made under, the City of Toronto Act, 2006 do not apply to development charges collected by a municipality. 2002, c. 17, Sched. F, Table; 2006, c. 32, Sched. C, s. 12 (2); 2017, c. 10, Sched. 4, s. 2. Limitation (2) Development charges may not be advanced by a municipality to its capital account as interim financing of capital undertakings of the municipality, except for those capital undertakings for which the development charges may be spent under this Act. 2002, c. 17, Sched. F, Table. Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003 2006, c. 32, Sched. C, s. 12 (2) - 01/01/2007 2017, c. 10, Sched. 4, s. 2 - 01/03/2018 Credits Credits for work 38 (1) If a municipality agrees to allow a person to perform work that relates to a service to which a development charge by-law relates, the municipality shall give the person a credit towards the development charge in accordance with the agreement. 1997, c. 27, s. 38 (1). Amount of credits (2) The amount of the credit is the reasonable cost of doing the work as agreed by the municipality and the person who is to be given the credit. 1997, c. 27, s. 38 (2). Limitation: above average level of service (3) No credit may be given for any part of the cost of work that relates to an increase in the level of service that exceeds the average level of service described in paragraph 4 of subsection 5 (1). 1997, c. 27, s. 38 (3). Credit can be given before work completed (4) A credit, or any part of it, may be given before the work for which the credit is given is completed. 1997, c. 27, s. 38 (4). Credit relates to service for which work done 39 (1) A credit given in exchange for work done is a credit only in relation to the service to which the work relates. 1997, c. 27, s. 39 (1). Credits can be divided among services (2) If the work relates to more than one service, the credit for the work must be allocated, in the manner agreed by the municipality, among the services to which the work relates. 1997, c. 27, s. 39 (2). Exception by agreement (3) The municipality may agree that a credit given be in relation to another service to which the development charge by-law relates. 1997, c. 27, s. 39 (3). Changes after credit given (4) The municipality may agree to change a credit so that it relates to another service to which the development charge by-law relates. 1997, c. 27, s. 39 (4). Transfer of credits 40 (1) A credit may not be transferred unless, (a) the holder and person to whom the credit is to be transferred have agreed in writing to the transfer; and (b) the municipality has agreed to the transfer, either in the agreement under which the holder of the credit was given the credit or subsequently. 1997, c. 27, s. 40 (1). Transfer is by municipality (2) The transfer of a credit is not effective until the municipality transfers it. 1997, c. 27, s. 40 (2). When municipality must transfer credit (3) A municipality shall transfer a credit upon being requested to do so by the holder, the person to whom the credit is to be transferred or the agent of either of them and being given proof that the conditions in subsection (1) are satisfied. 1997, c. 27, s. 40 (3). Use of a credit 41 (1) Subject to subsection (1.1), a credit that relates to a service may be used only with respect to that part of a development charge that relates to the service. 1997, c. 27, s. 41 (1); 2025, c. 9, Sched. 4, s. 7 (1). Services deemed to be one service (1.1) If two or more services are deemed to be one service by the regulations, a credit that relates to any one of those services may be used with respect to that part of a development charge that relates to any of those services. 2025, c. 9, Sched. 4, s. 7 (2). Use under another development charge by-law (2) A credit given towards a development charge under a development charge by-law may be used for a development charge under another development charge by-law only if that other development charge by-law so provides. 1997, c. 27, s. 41 (2). Used by holder or agent (3) A credit may be used only by the holder or the holder’s agent. 1997, c. 27, s. 41 (3). Section Amendments with date in force (d/m/y) 2025, c. 9, Sched. 4, s. 7 (1, 2) - 05/06/2025 Miscellaneous Registration of by-law 42 A municipality that has passed a development charge by-law may register the by-law or a certified copy of it against the land to which it applies. 1997, c. 27, s. 42. Statement of treasurer 43 (1) The treasurer of a municipality shall each year on or before June 30 of the year, give the council a financial statement relating to development charge by-laws and reserve funds established under section 33. 1997, c. 27, s. 43 (1); 2025, c. 14, Sched. 3, s. 6 (1). Requirements (2) A statement must include, for the preceding year, (a) statements of the opening and closing balances of the reserve funds and of the transactions relating to the funds; (b) statements identifying, (i) all assets whose capital costs were funded under a development charge by-law during the year, (ii) for each asset mentioned in subclause (i), the manner in which any capital cost not funded under the by-law was or will be funded; (c) a statement as to compliance with subsection 59.1 (1); and (d) any other information that is prescribed. 2015, c. 26, s. 7 (1). Statement available to public (2.1) The council shall ensure that the statement is made available to the public, (a) by posting the statement on the website of the municipality or, if there is no such website, in the municipal office; and (b) in such other manner and in accordance with such other requirements as may be prescribed. 2022, c. 12, Sched. 2, s. 1. Copy to Minister (3) The treasurer shall give a copy of a statement to the Minister of Municipal Affairs and Housing no later than July 15 of the year in which the statement was provided to the council. 1997, c. 27, s. 43 (3); 2015, c. 26, s. 7 (2); 2025, c. 14, Sched. 3, s. 6 (2). Section Amendments with date in force (d/m/y) 2015, c. 26, s. 7 (1, 2) - 01/01/2016 2022, c. 12, Sched. 2, s. 1 - 14/04/2022 2025, c. 14, Sched. 3, s.

6 (1, 2) - 27/11/2025 PART III FRONT-ENDING AGREEMENTS Front-ending Agreements Front-ending agreement 44 (1) A municipality in which a development charge by-law is in force may enter into an agreement, called a front-ending agreement, that, (a) applies with respect to work, done before or after the agreement is entered into, (i) that relates to the provision of services for which there will be an increased need as a result of development, and (ii) that will benefit an area of the municipality, defined in the agreement, to which the development charge by-law applies; (b) provides for the costs of the work to be borne by one or more of the parties to the agreement; and (c) provides for persons who, in the future, develop land within the area defined in the agreement to pay an amount to reimburse some part of the costs of the work. 1997, c. 27, s. 44 (1). Restrictions on services covered (2) The services to which the work relates must be services to which the development charge by-law relates and that are set out in paragraph 1, 2, 3, 4 or 5 of subsection 2 (4). 1997, c. 27, s. 44 (2); 2019, c. 9, Sched. 3, s. 11 (1). Reimbursement restriction (3) A front-ending agreement may provide for a person who is not a party to the agreement to pay an amount only if the person develops land and a development charge could be imposed for the development under subsections 2 (2) and (3). 1997, c. 27, s. 44 (3). Exemption (4) Subsections 2 (3.3), 4.1 (8) and (10), 4.2 (2) and 4.3 (1) and section 4 apply, with necessary modifications, to amounts a person who is not a party to a front-ending agreement must pay under the agreement. 1997, c. 27, s. 44 (4); 2019, c. 9, Sched. 3, s. 11 (2); 2022, c. 21, Sched. 3, s. 11. “Tiering” of front end costs (5) A front-ending agreement may provide for persons who reimburse part of the costs of the work borne by the parties to be themselves reimbursed by persons who later develop land within the area defined in the agreement. 1997, c. 27, s. 44 (5). Person can not be reimbursed for their share (6) A front-ending agreement must not provide for a person to be reimbursed for any part of their non-reimbursable share of the costs of the work as determined under the agreement. 1997, c. 27, s. 44 (6). Inclusions in cost of work (7) A front-ending agreement may provide for the following to be included in the cost of the work: 1. The reasonable costs of administering the agreement. 2. The reasonable costs of consultants and studies required to prepare the agreement. 1997, c. 27, s. 44 (7). Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 11 (1, 2) - 18/09/2020 2022, c. 21, Sched. 3, s. 11 (1) - 28/11/2022; 2022, c. 21, Sched. 3, s. 11 (2) - 01/06/2024 Contents of agreements 45 (1) A front-ending agreement must contain the following: 1. A description of the work to be done, a definition of the area of the municipality that will benefit from the work and the estimated cost of the work. 2. The proportion of the cost of the work that will be borne by each party to the agreement. 3. The method for determining the part of the costs of the work that will be reimbursed by the persons who, in the future, develop land within the area defined in the agreement. 4. The amount, or a method for determining the amount, of the non-reimbursable share of the costs of the work for the parties and for persons who reimburse parts of the costs of the work. 5. A description of the way in which amounts collected from persons to reimburse the costs of the work will be allocated. 1997, c. 27, s. 45 (1). Other provisions allowed (2) A front-ending agreement may contain other provisions in addition to those required under subsection (1). 1997, c. 27, s. 45 (2). Objections to Agreements Notice of agreement and time for objections 46 (1) The clerk of a municipality that has entered into a front-ending agreement shall give written notice of an agreement and of the last day for filing an objection to the agreement, which shall be the day that is 40 days after the day the agreement is made. 1997, c. 27, s. 46 (1). Requirements of notice (2) Notice must be given, not later than 20 days after the day the agreement is made, (a) by mailing a notice to every owner of land within the area defined in the front-ending agreement; or (b) by publishing a notice in a newspaper having general circulation in the municipality. 1997, c. 27, s. 46 (2). Same (3) A notice required under this section must explain the nature and purpose of the agreement and must indicate that the agreement can be viewed in the office of the clerk of the municipality during normal office hours. 1997, c. 27, s. 46 (3). Agreement to be available (4) The clerk of the municipality shall ensure that the agreement can be viewed as set out in the notice. 1997, c. 27, s. 46 (4). Objection to agreement 47 Any owner of land within the area defined in the front-ending agreement may object to a front-ending agreement by filing with the clerk of the municipality on or before the last day for objecting to the agreement, a notice of objection setting out the objection to the agreement and the reasons supporting the objection. 1997, c. 27, s. 47. Clerk’s duties if objection 48 (1) If the clerk of the municipality receives a notice of objection on or before the last day for filing an objection, the clerk shall compile a record that includes, (a) a copy, certified by the clerk, of every development charge by-law that applies to the area defined in the front-ending agreement; (b) a copy of the front-ending agreement certified by the clerk; (c) an affidavit or declaration certifying that notice of the front-ending agreement and of the last day for filing an objection to it was given in accordance with this Act. 1997, c. 27, s. 48 (1). Same (2) The clerk shall forward a copy of the notice of objection and the record to the Ontario Land Tribunal within 30 days after the last day for filing an objection and shall provide such other information or material as the Tribunal may require in respect of the objection. 1997, c. 27, s. 48 (2); 2021, c. 4, Sched. 6, s. 41 (6). Affidavit, declaration conclusive evidence (3) An affidavit or declaration of the clerk of a municipality that notice of the front-ending agreement and of the last day for filing an objection to it was given in accordance with this Act is conclusive evidence of the facts stated in the affidavit or declaration. 1997, c. 27, s. 48 (3). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (6) - 01/06/2021 Tribunal hearing of objection 49 (1) The Ontario Land Tribunal shall hold a hearing to deal with any notice of objection to a front-ending agreement forwarded by the clerk of a municipality. 1997, c. 27, s. 49 (1); 2021, c. 4, Sched. 6, s. 41 (1). Powers of Tribunal (2) After the hearing, the Ontario Land Tribunal may, (a) dismiss the objection in whole or in part; (b) terminate the agreement; (c) order that the agreement is terminated unless the parties amend it in accordance with the Tribunal’s order. 2021, c. 4, Sched. 6, s. 41 (7). Same (3) If the Ontario Land Tribunal terminates the agreement or makes an order under clause (2) (c), the Tribunal may order the municipality to refund any amount paid under the agreement in excess of, (a) if the agreement is terminated, what would have been payable under the development charge by-law; or (b) if the agreement is amended, what would have been payable under the amended agreement. 1997, c. 27, s. 49 (3); 2021, c. 4, Sched. 6, s. 41 (8). Effective date of amendment (4) An amendment in accordance with an order under clause (2) (c) shall be deemed to have come into force on the day the agreement comes into force. 1997, c. 27, s. 49 (4). Dismissal without hearing (5) Despite subsection (1), the Ontario Land Tribunal may, where it is of the opinion that the objection to the agreement set out in the notice of objection is insufficient, dismiss the objection without holding a full hearing after notifying the person filing the objection and giving that person an opportunity to make representations as to the merits of the objection. 1997, c. 27, s. 49 (5); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1, 7, 8) - 01/06/2021 Objections to amendments 50 Sections 46 to 49 apply, with necessary modifications, to an amendment to a front-ending agreement other than an amendment pursuant to an order of the Ontario Land Tribunal. 1997, c. 27, s. 50; 2021, c. 4, Sched. 6, s. 41 (9). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (9) - 01/06/2021 Miscellaneous When agreements in force 51 (1) A front-ending agreement comes into force on the day the agreement is made. 1997, c. 27, s. 51 (1). If agreement terminated (2) A front-ending agreement that is terminated by the Ontario Land Tribunal shall be deemed to have never come into force. 1997, c. 27, s. 51 (2); 2021, c. 4, Sched. 6, s. 41 (1). Application to amendments (3) This section applies, with necessary modifications, with respect to amendments to front-ending agreements. 1997, c. 27, s. 51 (3). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 Non-parties bound by agreement 52 (1) A person who develops land within the area defined in a front-ending agreement shall pay any amount the agreement provides under clause 44 (1) (c). 1997, c. 27, s. 52 (1). When amounts payable (2) An amount that is payable under subsection (1) is payable upon a building permit being issued for the development unless the front-ending agreement provides for the amount to be payable on a later day or on an earlier day as allowed under subsection (3). 1997, c. 27, s. 52 (2). Same (3) A front-ending agreement may provide that an amount payable under subsection (1) for development that requires approval of a plan of subdivision under section 51 of the Planning Act or a consent under section 53 of the Planning Act and for which a subdivision agreement or consent agreement is entered into, be payable immediately upon the parties entering into the subdivision or consent agreement. 1997, c. 27, s. 52 (3). Special case, certain types of development (3.1) Despite subsections (2) and (3), an amount that is payable under subsection (1) in respect of any part of a development that consists of a type of development set out in subsection 26.1 (2) is payable in accordance with the following provisions, with necessary modifications: 1. Subsection 26.1 (3) or (3.1), as applicable. 2. Subsections 26.1 (5) and (6). 2019, c. 9, Sched. 3, s. 12; 2026, c. 8, Sched. 3, s. 2. Transition, date of agreement (3.2) Subsection (3.1) does not apply to an amount that is payable under subsection (1) in respect of a front-ending agreement entered into before the day section 12 of Schedule 3 to the More Homes, More Choice Act, 2019 comes into force. 2019, c. 9, Sched. 3, s. 12. Amounts paid to municipality (4) Amounts paid under subsection (1) shall be paid to the municipality. 1997, c. 27, s. 52 (4). Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 12 - 01/01/2020 2026, c. 8, Sched. 3, s. 2 - 02/06/2026 Building permits withheld until amounts paid 53 If an amount is payable under a front-ending agreement by a person who develops land, no municipality shall issue a building permit for the development until the amount is paid. 1997, c. 27, s. 53. Use of money received under an agreement 54 (1) A municipality that receives money under a front-ending agreement shall place the money in a special account. 1997, c. 27, s. 54 (1). Use of money in special account (2) The money in the special account shall be used, in accordance with the agreement, only for the following purposes: 1. To pay for work provided for under the agreement. 2. To reimburse those who, under the agreement, have a right to be reimbursed. 1997, c. 27, s. 54 (2). Return of excess funds (3) Despite subsection (2), if the municipality receives money from parties to the agreement to pay for work provided under the agreement, the municipality shall, if the agreement so provides, return to the parties any amounts that are not needed to pay for the work. 1997, c. 27, s. 54 (3). Money held until objections disposed of (4) If an objection to a front-ending agreement is made, the municipality shall retain any money received from persons who are not parties to the agreement until all the objections to the agreement are disposed of by the Ontario Land Tribunal. If the Tribunal makes an order that the agreement be terminated unless the parties amend it in accordance with the Tribunal’s order, the municipality shall retain the money until the agreement is either terminated or amended. 2021, c. 4, Sched. 6, s. 41 (10). Application to amendments (5) Subsection (4) applies with necessary modifications with respect to amendments to front-ending agreements. 1997, c. 27, s. 54 (5). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (10) - 01/06/2021 Credits 55 (1) A person is entitled to be given a credit towards a development charge for the amount of their non-reimbursable share of the costs of work under a front-ending agreement. 1997, c. 27, s. 55 (1). Restriction on the amount (2) If the work would result in a level of service that exceeds the average level of the service in the 10-year period immediately preceding the preparation of the background study for the development charge by-law, the amount of the credit must be reduced in the same proportion that the costs of the work that relate to a level of service that exceeds that average level of service bear to the costs of the work. Any regulations relating to the level of service and average level of service for the purposes of paragraph 4 of subsection 5 (1) also apply with necessary modifications for the purposes of this subsection. 1997, c. 27, s. 55 (2). Credits are treated like s. 38 credits (3) Credits under this section shall be treated, for the purposes of this Act, as though they were credits under section 38. 1997, c. 27, s. 55 (3). Registration of agreement 56 A party to a front-ending agreement may register the agreement or a certified copy of it against the land to which it applies. 1997, c. 27, s. 56. Notice to other tier 57 (1) An upper-tier municipality that is a party to a front-ending agreement shall, within 20 days after the agreement is made or amended, give a copy of the agreement or amendment to any area municipality that is not a party to the agreement and whose territory includes any part of the area defined in the agreement. 1997, c. 27, s. 57 (1). Same (2) An area municipality that is a party to a front-ending agreement shall, within 20 days after the agreement is made or amended, give a copy of the agreement or amendment to the upper-tier municipality that the area municipality is part of, if the upper-tier municipality is not a party to the agreement. 1997, c. 27, s. 57 (2). PART IV GENERAL 58 Repealed: 2009, c. 33, Sched. 2, s. 24. Section Amendments with date in force (d/m/y) 2009, c. 33, Sched. 2, s. 24 - 15/12/2009 Planning Act, ss. 51, 53 59 (1) A municipality shall not, by way of a condition or agreement under section 51 or 53 of the Planning Act, impose directly or indirectly a charge related to a development or a requirement to construct a work for the provision of a service related to development except as allowed in subsection (2). 1997, c. 27, s. 59 (1); 2025, c. 14, Sched. 3, s. 7 (1). Exception for local services (2) Subject to subsection (2.5), a condition or agreement referred to in subsection (1) may provide for, (a) works for the provision of local services, related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under section 51 of the Planning Act; (b) works for the provision of local services to be installed or paid for by the owner as a condition of approval under section 53 of the Planning Act. 1997, c. 27, s. 59 (2); 2025, c. 14, Sched. 3, s. 7 (2). What constitutes a local service (2.1) What constitutes a local service for the purposes of clauses (2) (a) and (b) may be determined by the regulations. 2025, c. 9, Sched. 4, s. 8. Local service policy (2.2) A municipality shall establish a local service policy for each service referred to in subsection 2 (4) in respect of which a by-law imposes a development charge and in respect of which some part of the service will be provided as a local service in accordance with subsection (2). 2025, c. 14, Sched. 3, s. 7 (3). Same, required content (2.3) The local service policy shall identify works or classes of works related to development that are intended to be works for the provision of local services. 2025, c. 14, Sched. 3, s. 7 (3). Same, optional content (2.4) The local service policy may identify, (a) works or classes of works related to development that are not intended to be works for the provision of local services; and (b) works or classes of works related to development of which only one or more parts of the works are intended to be works for the provision of local services. 2025, c. 14, Sched. 3, s. 7 (3). Same, application of subs. (2) (2.5) Subject to subsection (2.8), subsection (2) applies in respect of a work for the provision of a local service only to the extent the work is identified as being intended to be a work for the provision of a local service in the local service policy of the applicable municipality. 2025, c. 14, Sched. 3, s. 7 (3). Same, exception (2.6) Subsection (2.5) does not apply in respect of a work for the provision of a local service if the service is one in respect of which no development charge by-law in force in the municipality imposes a development charge. 2025, c. 14, Sched. 3, s. 7 (3). Same, application (2.7) Subsection (2.5) applies in respect of a municipality on the earlier of, (a) the day that is 18 months after the day subsection 7 (3) of Schedule 3 to the Fighting Delays, Building Faster Act, 2025 comes into force; and (b) the day the municipality establishes the local service policy required by subsection (2.2). 2025, c. 14, Sched. 3, s. 7 (3). Copy to Minister (2.8) The municipality shall give a copy of the local service policy to the Minister of Municipal Affairs and Housing on request, by the deadline specified in the request. 2025, c. 14, Sched. 3, s. 7 (3). Regular review of policy (2.9) If a local service policy has been established in a municipality, the municipality shall ensure that a review of the policy is undertaken to determine the need for a revision of the policy. 2025, c. 14, Sched. 3, s. 7 (3). Resolution re need for revision (2.10) After conducting a review under subsection (2.9), the council shall pass a resolution declaring whether a revision to the local service policy is needed. 2025, c. 14, Sched. 3, s. 7 (3). Timing of review (2.11) A resolution under subsection (2.10) shall be passed at the time any development charge by-law is passed after the municipality has established a local service policy required by subsection (2.2). 2025, c. 14, Sched. 3, s. 7 (3). Limitation (3) This section does not prevent a condition or agreement under section 51 or 53 of the Planning Act from requiring that services be in place before development begins. 1997, c. 27, s. 59 (3). Notice of development charges at transfer (4) In giving approval to a draft plan of subdivision under subsection 51 (31) of the Planning Act, the approval authority shall use its power to impose conditions under clause 51 (25) (d) of the Planning Act to ensure that the persons who first purchase the subdivided land after the final approval of the plan of subdivision are informed, at the time the land is transferred, of all the development charges related to the development. 1997, c. 27, s. 59 (4). Exception, old agreements (5) This section does not affect a condition or agreement imposed or made under section 51 or 53 of the Planning Act that was in effect on November 23, 1991. 1997, c. 27, s. 59 (5). Section Amendments with date in force (d/m/y) 2025, c. 9, Sched. 4, s. 8 - 05/06/2025 2025, c. 14, Sched. 3, s. 7 (1-3) - 27/11/2025 No additional levies 59.1 (1) A municipality shall not impose, directly or indirectly, a charge related to a development or a requirement to construct a service related to development, except as permitted by this Act or another Act. 2015, c. 26, s. 8. Prescribed exceptions (2) Subsection (1) does not apply with respect to, (a) a prescribed class of developments; (b) a prescribed class of services related to developments; or (c) a prescribed Act or a prescribed provision of an Act. 2015, c. 26, s. 8. Exception, transition (3) Subsection (1) does not affect a charge that is imposed before the day section 8 of the Smart Growth for Our Communities Act, 2015 comes into force. 2015, c. 26, s. 8. Power of investigation (4) The Minister of Municipal Affairs and Housing may, at any time, investigate whether a municipality has complied with subsection (1). 2015, c. 26, s. 8. Same (5) For the purposes of an investigation under subsection (4), the Minister may, (a) inquire into any or all of the municipality’s affairs, financial and otherwise; (b) require the production of any records and documents that may relate to the municipality’s affairs; (c) inspect, examine, audit and copy anything required to be produced under clause (b); (d) require any officer of the municipality and any other person to appear before the Minister and give evidence on oath about the municipality’s affairs; and (e) hold any hearings in respect of the municipality’s affairs as the Minister considers necessary or expedient. 2015, c. 26, s. 8. Application of Public Inquiries Act, 2009 (6) Section 33 of the Public Inquiries Act, 2009 applies to an investigation under subsection (4). 2015, c. 26, s. 8. Cost of investigation (7) The Minister may require the municipality to pay all or part of the cost of an investigation under subsection (4). 2015, c. 26, s. 8. Section Amendments with date in force (d/m/y) 2015, c. 26, s. 8 - 01/01/2016 Regulations 60 (1) The Lieutenant Governor in Council may make regulations, (a) defining or clarifying “gross floor area” and “existing industrial building” for the purposes of this Act; (b), (b.1) Repealed: 2022, c. 21, Sched. 3, s. 12 (1). (c) clarifying or defining terms used in subsection 2 (4) that are not already defined in or under this Act; (c.1) prescribing services for the purposes of paragraph 21 of subsection 2 (4); (c.2) governing transitional matters arising from additional services being prescribed under clause (c.1); (d) prescribing areas, and prescribing services with respect to prescribed areas, for the purposes of subsection 2 (9); (d.1) prescribing municipalities, services and criteria for the purposes of subsection 2 (11); (d.2) prescribing developments and classes of developments for the purposes of paragraph 3 of subsection 4.1 (4); (d.3) prescribing criteria for the purposes of paragraph 5 of subsection 4.1 (4); (e) governing the determination as to whether the council of a municipality has indicated, for the purposes of paragraph 3 of subsection 5 (1), an intention to ensure that an increase in need for service will be met; (f) governing the determination of the level of service and the average level of service for the purposes of paragraph 4 of subsection 5 (1); (g) for the purposes of paragraph 5 of subsection 5 (1), governing the determination of excess capacity and whether a council has indicated an intention that excess capacity would be paid for by new development; (h) governing the determination of the extent to which an increase in service would benefit existing development for the purposes of paragraph 6 of subsection 5 (1); (i) governing the estimation of the capital costs for the purposes of paragraph 7 of subsection 5 (1); (j) prescribing an index for the purpose of paragraph 10 of subsection 5 (1); (k) governing reductions, under subsection 5 (2), to adjust for capital grants, subsidies and other contributions, including governing what are capital grants, subsidies and other contributions for the purposes of that subsection and how much the reduction shall be for such grants, subsidies and other contributions; (l) providing for exceptions to the application of subsection 5 (3), and making such exceptions subject to conditions; (m) Repealed: 2019, c. 9, Sched. 3, s. 13 (4). (m.1) further clarifying or defining the term “Toronto-York subway extension” in subsection 5.1 (1) or the term “Yonge North subway extension” in subsection 5.1.1 (1); (m.2) prescribing the method and criteria to be used to estimate the planned level of service for the Toronto-York subway extension or the Yonge North subway extension; (m.3) prescribing a service, other than the Toronto-York subway extension or the Yonge North subway extension, as a service for the purposes of section 5.2; (m.4) prescribing the method and criteria to be used to estimate the planned level of service for a service that is prescribed for the purposes of section 5.2; (m.5) prescribing a date for the purposes of section 9.1; (n) prescribing information that must be included in a background study under section 10; (o) defining or clarifying “operating costs” for the purposes of clause 10 (2) (c); (o.1) prescribing information for the purposes of clause 10 (3) (c); (o.2) prescribing the manner in which an asset management plan is to be prepared for the purposes of clause 10 (3) (d); (p) for the purposes of clause 12 (1) (b), governing notice of meetings; (q) for the purposes of subsection 13 (2), governing notices of the passing of development charge by-laws; (r) requiring municipalities to keep records in respect of reserve funds and governing such records; (s) prescribing the minimum interest rate or a method for determining the minimum interest rate that municipalities shall pay under subsections 18 (3) and 25 (2) and section 36; (s.1) governing the types of development set out in subsection 26.1 (2); (s.1.1) prescribing circumstances and limitations for the purposes of subsection 26.1 (3.2); (s.2) Repealed: 2022, c. 21, Sched. 3, s. 12 (4); (s.2.1) prescribing developments for the purposes of subsection 26.2 (1.3); (s.3) Repealed: 2025, c. 9, Sched. 4, s. 9 (3); (s.4) prescribing one or more services for the purposes of subsection 35 (3); (s.5) deeming two or more services to be one service for the purposes of subsection 41 (1.1); (t) prescribing information for the purposes of clause 43 (2) (d); (t.0.1) prescribing the manner in which a statement is to be made available and other requirements for the purposes of clause 43 (2.1) (b); (t.0.2) determining what constitutes a local service for the purposes of clauses 59 (2) (a) and (b); (t.1) prescribing classes of developments and classes of services related to developments for the purposes of subsection 59.1 (2); (t.2) prescribing Acts and provisions of Acts for the purposes of subsection 59.1 (2); (u) requiring municipalities to give notice of the particulars of development charge by-laws that are in force, in the manner, and to the persons, prescribed in the regulations; (v) requiring municipalities to prepare and distribute pamphlets to explain their development charge by-laws and governing the preparation of such pamphlets and their distribution by municipalities and others. 1997, c. 27, s. 60 (1); 2006, c. 33, Sched. H, s. 3; 2015, c. 26, s. 9; 2019, c. 9, Sched. 3, s. 13 (1, 2, 4-6); 2020, c. 18, Sched. 3, s. 10; 2021, c. 34, Sched. 7, s. 3; 2022, c. 12, Sched. 2, s. 2; 2022, c. 21, Sched. 3, s. 12 (1-6); 2025, c. 9, Sched. 4, s. 9. Adoption by reference (1.1) A regulation under clause (1) (d.3) may adopt by reference, in whole or in part and with such changes as are considered necessary, any document and may require compliance with the document. 2022, c. 21, Sched. 3, s. 12 (7). Rolling incorporation by reference (1.2) The power to adopt by reference and require compliance with a document in subsection (1.1) includes the power to adopt a document as it may be amended from time to time. 2022, c. 21, Sched. 3, s. 12 (7). Forms (2) Regulations under subsection (1) may require the use of forms approved by the Minister of Municipal Affairs and Housing. 1997, c. 27, s. 60 (2). Section Amendments with date in force (d/m/y) 2006, c. 33, Sched. H, s. 3 - 04/05/2007 2015, c. 26, s. 9 (1-3) - 01/01/2016 2016, c. 25, Sched. 1, s. 2 - no effect - see 2019, c. 9, Sched. 3, s. 15 (1) - 06/06/2019 2019, c. 9, Sched. 3, s. 13 (1, 2, 4) - 18/09/2020; 2019, c. 9, Sched. 3, s. 13 (3) - no effect - 2020, c. 18, Sched. 3, s. 12 - 21/07/2020; 2019, c. 9, Sched. 3, s. 13 (5) - 06/06/2019; 2019, c. 9, Sched. 3, s. 13 (6) - 01/01/2020 2020, c. 18, Sched. 3, s. 10 - 18/09/2020 2021, c. 34, Sched. 7, s. 3 - 01/01/2022 2022, c. 12, Sched. 2, s. 2 - 14/04/2022; 2022, c. 21, Sched. 3, s. 12 (1, 3-6) - 28/11/2022; 2022, c. 21, Sched. 3, s. 12 (2, 7) - 01/06/2024 2025, c. 9, Sched. 4, s. 9 (1, 3, 4) - 05/06/2025; 2025, c. 9, Sched. 4, s. 9 (2) - 03/11/2025 Regulations respecting transition, 2019 amendments 60.1 The Lieutenant Governor in Council may make regulations, (a) setting out transitional rules dealing with matters not specifically dealt with in the amendments to this Act made by Schedule 3 to the More Homes, More Choice Act, 2019; (b) clarifying the transitional rules set out in the amendments to this Act made by Schedule 3 to the More Homes, More Choice Act, 2019; (c) setting out transitional rules dealing with matters not specifically dealt with in the amendments to this Act made by Schedule 3 to the COVID-19 Economic Recovery Act, 2020; (d) clarifying the transitional rules set out in the amendments to this Act made by Schedule 3 to the COVID-19 Economic Recovery Act, 2020. 2019, c. 9, Sched. 3, s. 14; 2020, c. 18, Sched. 3, s. 11. Section Amendments with date in force (d/m/y) 2019, c. 9, Sched. 3, s. 14 - 06/06/2019 2020, c. 18, Sched. 3, s. 11 - 18/09/2020 PART V TRANSITIONAL RULES Interpretation 61 In this Part, “old Act” means the Development Charges Act as it reads immediately before this section comes into force; (“ancienne loi”) “transition period” means the 18-month period beginning on the day this section comes into force. (“période de transition”) 1997, c. 27, s. 61. By-laws under the old Act 62 (1) This section applies with respect to a development charge by-law under the old Act. 1997, c. 27, s. 62 (1). Continues during transition period (2) Unless it expires or is repealed earlier, a development charge by-law continues in force until the end of the transition period and the old Act continues to apply with respect to the by-law. 1997, c. 27, s. 62 (2). Application of old Act (3) A municipality may, under the old Act, amend or repeal a development charge by-law with respect to which the old Act applies under subsection (2) but the municipality may not pass a new development charge by-law under that Act. 1997, c. 27, s. 62 (3). Repeal at the end of transition period (4) A development charge by-law under the old Act that has not already expired or been repealed expires at the end of the transition period. 1997, c. 27, s. 62 (4). Front-ending agreement requirement (5) For the purposes of subsection 44 (1), a development charge by-law under the old Act shall be deemed to be a development charge by-law under this Act. 1997, c. 27, s. 62 (5). Reserve funds under the old Act 63 (1) This section applies with respect to a reserve fund under a development charge by-law under the old Act that expires or is repealed during the transition period or expires, under section 62, at the end of the transition period. 1997, c. 27, s. 63 (1). Eligible services (2) If a reserve fund is not for a service referred to in paragraphs 1 to 7 of subsection 2 (4) then, upon the expiry or repeal of the development charge by-law, the reserve fund shall be deemed to be a reserve fund under this Act. 1997, c. 27, s. 63 (2). Ineligible services (3) If a reserve fund is for a service referred to in paragraphs 1 to 7 of subsection 2 (4) then, upon the expiry or repeal of the development charge by-law, the following apply: 1. The reserve fund shall be deemed to be a general capital reserve fund for the same purpose. 2. The municipality may, at any time, allocate all the money in the fund to one or more reserve funds established under development charge by-laws under this Act. 3. Five years after the development charge by-law expires or is repealed, the municipality shall allocate any money remaining in the fund to reserve funds established under development charge by-laws under this Act or, if there are no such reserve funds, to a general capital reserve fund. 4. Despite paragraph 1, subsection 417 (4) of the Municipal Act, 2001 and any equivalent provision of, or made under, the City of Toronto Act, 2006 do not apply with respect to the fund. 1997, c. 27, s. 63 (3); 2002, c. 17, Sched. F, Table; 2006, c. 32, Sched. C, s. 12 (3). Interpretation (4) In this section and in sections 64, 65 and 66, references to paragraphs 1 to 7 of subsection 2 (4) shall be read as references to those provisions as they read before the day subsection 2 (2) of the Smart Growth for Our Communities Act, 2015 comes into force. 2015, c. 26, s. 10. Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003 2006, c. 32, Sched. C, s. 12 (3) - 01/01/2007 2015, c. 26, s. 10 - 01/01/2016 Credits under old section 13, ineligible services 64 (1) The following apply with respect to a development charge by-law that expires or is repealed during the transition period or expires, under section 62, at the end of the transition period: 1. Within 20 days after the expiry or repeal of the development charge by-law, the clerk of the municipality shall give written notice of the expiry or repeal of the by-law and of the last day for applying for a refund of ineligible credits given under section 13 of the old Act which shall be the day that is 80 days after the day the by-law expires or is repealed. 2. Notices required under paragraph 1 must meet the requirements prescribed in the regulations and shall be given in accordance with the regulations. 3. A notice required under paragraph 1 shall be deemed to have been given, i. if the notice is by publication in a newspaper, on the day that the publication occurs, ii. if the notice is given by mail, on the day that the notice is mailed. 4. On or before the day that is 90 days after the last day for applying for a refund of ineligible credits given under section 13 of the old Act, the municipality shall pay each holder of such a credit the full value of the credit. 1997, c. 27, s. 64 (1). “Ineligible credit” (2) In this section, “ineligible credit” is a credit given under the old Act in respect of a service referred to in paragraphs 1 to 7 of subsection 2 (4) including such a credit given under the old Act as it applies under section 62. 1997, c. 27, s. 64 (2). Credits under old section 13, eligible services 65 (1) The following apply with respect to a development charge by-law that expires or is repealed during the transition period or expires, under section 62, at the end of the transition period: 1. The holder of an eligible credit given under section 13 of the old Act is entitled to be given a credit towards a development charge under a development charge by-law under this Act of the same municipality under whose by-law the eligible credit was given. 2. A credit may only be given with respect to the service to which the eligible credit related. 1997, c. 27, s. 65 (1). “Eligible credit” (2) In this section, “eligible credit” is a credit given under the old Act in respect of a service not referred to in paragraphs 1 to 7 of subsection 2 (4) including such a credit given under the old Act as it applies under section 62. 1997, c. 27, s. 65 (2). Debt under the old Act for eligible services 66 (1) This section applies with respect to a debt, other than credits, incurred with respect to a service not referred to in paragraphs 1 to 7 of subsection 2 (4), under a development charge by-law under the old Act that expires or is repealed during the transition period or expires, under section 62, at the end of the transition period. 1997, c. 27, s. 66 (1). Can be included as capital cost (2) For the purposes of developing a development charge by-law, the debt may be included as a capital cost subject to any limitations or reductions in this Act or the regulations. 1997, c. 27, s. 66 (2). Agreements to pay early or late 67 (1) This section applies with respect to an agreement under subsection 9 (4) or (8) of the old Act (early or late payment) that relates to a development charge under a development charge by-law under the old Act that expires or is repealed during the transition period or expires, under section 62 at the end of the transition period. 1997, c. 27, s. 67 (1). Agreements continued (2) An agreement continues in force after the development charge by-law expires or is repealed but only in respect of a development charge that was payable, in the absence of the agreement, before the development charge by-law expired or was repealed. 1997, c. 27, s. 67 (2). Regulations, transition 68 (1) The Lieutenant Governor in Council may make regulations, (a) governing notices for the purposes of paragraph 2 of subsection 64 (1); (b) for the purposes of section 66, limiting the circumstances in which a debt may be included as a capital cost and prescribing reductions that shall be made if a debt is to be included as a capital cost; (c) setting out transitional rules relating to credits given under section 14 of the old Act; (d) setting out transitional rules relating to front-ending agreements under Part II of the old Act; (e) setting out transitional rules dealing with matters not specifically dealt with in this Part; (f) clarifying the transitional rules set out in this Part. 1997, c. 27, s. 68 (1). Same (2) Regulations under clause (1) (c) may provide for procedures to apply in relation to credits given under section 14 of the old Act and, without limiting the generality of the foregoing, such regulations may provide for appeals to the Ontario Land Tribunal. 1997, c. 27, s. 68 (2); 2021, c. 4, Sched. 6, s. 41 (1). Section Amendments with date in force (d/m/y) 2021, c. 4, Sched. 6, s. 41 (1) - 01/06/2021 69-72 Omitted (amends or repeals other Acts). 1997, c. 27, ss. 69-72. 73 Omitted (provides for coming into force of provisions of this Act). 1997, c. 27, s. 73. 74 Omitted (enacts short title of this Act). 1997, c. 27, s. 74. ______________