Development charges are one-time fees collected from developers by municipalities at the time a building permit is issued.

The fees collected help pay for a share of growth-related capital infrastructure needs, such as transportation services, other services related to a highway including facilities, vehicles and equipment, fire protection services, by-law enforcement services, parks and recreation, library services, growth-related studies, and stormwater management.

The City collects development charges on behalf of the City, the Region of Durham and Durham area school boards.

2023/2024 Development Charges Pamphlet

Bill 23 (More Homes, Built Faster Act, November, 2022) introduced phasing of DC fees for the first 5 years of a DC by-law. The rates for July 1 to July 11, 2023 reflect 80% of the maximum DC fee, indexed. The rates for July 12, 2023 to June 30, 2024 reflect 85% of the maximum DC fee, indexed.

2022 Development Charges Background Study

Development Charges By-law

The final Report to Council on the 2022 Development Charges Background Study  and By-law 7953/22 were passed at the Council meeting of July 11, 2022. Development Charges rates presented in Schedule "C" and "D" in By-law 7953/22 approved to be effective July 12, 2022. 

 

Development Charges Interest Policy

January 1, 2020 Changes to the Development Charges Act (DCA)

Please refer to Report to Council FIN 09-20 for information pertaining to the changes to the DCA, and the related DC Interest Policy.

 

Bill 23 established that the maximum interest rate is to be prime plus 1% (section 26.3 of DCA). These rates are reflected in the table below, and FIN 09-20 will be revised to include the maximum legislated interest rates.

Interest Rate

Section 26.2 of the DCA prescribes that the total amount of a development charge (DC) is determined based on the day of application for an approval of a site plan development or the day an application for a zoning amendment to a By-law. As a result, the municipality may charge interest on the DC from the date of application to the date the DC is payable.

The interest rate to apply is as follows:

Application Date and Interest Rate
January 1 - June 30, 2020    3.75%
July 1 - December 31, 2020  2.25%
January 1 - June 30, 2021    2.25%
July 1 - December 31, 2021  2.25%
January 1 - June 30, 2022    2.25%
July 1 - December 31, 2022  2.00%
January 1 - June 30, 2023     4.25%

July 1 - December 31, 2023  5.50%

 

Exception to Interest Calculation

There will be no interest calculation in the following situations:

Two-year time lapsed from the application approval date to building permit issuance date, on which the DC rates in effect are the rates at the time the building permit is issued;

or

In the absence of site plan or zoning by-law application, DC rates in effect are the rates at the time the building permit is issued. 

Treasurer's Statement

For additional information, please view the June 2023 Council Report re Development Charges Reserve Fund - 2022 Statement of the Treasurer for the Year Ended December 31, 2022.