In 2022, the Province of Ontario announced significant changes in an effort to increase housing:

Bill 23, More Homes Built Faster Act, 2022, proposed sweeping changes to various provincial statutes that govern development, including the Planning Act, the Development Charges Act and the Conservation Authorities Act, with the stated goal of removing barriers to get more homes built in Ontario (1.5 million homes by 2031). Bill 23 was announced October 25, 2022 and passed on November 28, 2022.

Financial Impact of Bill 23

Bill 23 amends the Development Charges Act by freezing, reducing, and exempting fees typically levied by municipalities and other authorities that can significantly impact the cost of development. Currently developers pay fees that help pay for growth and go towards infrastructure such as roads, transit, water and sewer infrastructure, parks and community/recreational facilities. These are called Development Charges (DC).

Through Bill 23, the Province proposes shifting some of the cost of this growth from developers to municipalities as it believes this may lower the purchase price of homes.

Overall, the City’s estimated loss of DC revenues is approximately $22.8 million over the next four years. This would result in subsequent slower development of growth related infrastructure, reduction in service levels, an increase in property taxes for taxpayers, or a combination of the three.

Simply put, unless offset with replacement funding, Bill 23 will significantly impact our ability to fund growth and the infrastructure needed to support our growing community, which may also increase property taxes and reduce service delivery.

Read Report to Council FIN 14-23 for an updated financial assessment. 

Read Report to Council PLN 49-22 for a high-level summary of the major changes proposed through Bill 23 and the various other legislative, regulatory, plan and policy reforms to planning and development (page 274 of 307).

Specifically, Bill 23 includes:

  • Exemptions to development charges for “affordable residential units,” “attainable units,” “non-profit housing developments”, and “affordable housing units” required pursuant to an Inclusionary Zoning By-law;
  • Reductions to development charges for the development of rental housing;
  • Reduction of the amount of development charges that may be imposed under existing and future development charges by-laws (a 20% reduction from the development charge that otherwise could have been imposed during the first year the by-law is in force, and a 15%, 10%, 5% reduction in the second, third, and fourth year);
  • A maximum interest rate (prime plus 1%) that municipalities can charge on development charges in certain circumstances for rental, institutional, and non-profit housing.

The Region is asking the province to engage with municipalities, in a meaningful way, to help increase the supply of different types of housing for all residents and income levels.

Learn more about additional impacts at www.durham.ca. 

Growth Management Study

In the early 2000’s, the City undertook a Growth Management Study, which identified Cherrywood as suitable for commercial and residential development, because the lands abut the urban boundary and have easy access to available infrastructure such as roads, water, and sewer.

However, the provincial government of the day disagreed with the City’s position and placed Cherrywood into the Greenbelt, and subsequently enacted the Duffins Rouge Agricultural Preserve Act as an additional legislative layer to prohibit development of these lands.

In year’s past, Council’s position was that Cherrywood should be developed, and that is was inappropriately placed into the Greenbelt. The City of Pickering had formally asked the Government of Ontario to remove Cherrywood from the Greenbelt in both 2016 and 2019.

Recorded Minutes

 Reports