Development Charges

Site Selection - Development Charges

Quick Facts

25%
Halton’s non-residential, non-retail development charges decreased 25 per cent in 2012


Understanding non-residential development charges in Halton Region

Created under Ontario's Development Charges Act, 1997, development charges (DCs) allow Ontario municipalities and school boards to recover growth-related costs associated with capital infrastructure needed to service new development. DCs help municipalities finance the capital costs of providing important services such:

  • Roads
  • Water and wastewater services
  • Fire and transit
  • Other general services

What triggers a development charge?

Generally, DCs are required for both new developments and redevelopments, although certain exemptions apply (see below).

  • Development typically refers to the construction of one or more buildings on land. It also refers to an addition or alteration to an existing building, which increases size or usability.
  • Redevelopment typically refers to the construction of one or more buildings on land where all or part of a building has previously been demolished. It also applies when the use of all or part of a building is changed from a residential purpose to a non-residential purpose, or from one non- residential development to another non-residential development.

Development Charge Policy & Rates

Development charges (DCs) are typically payable at the time of a building permit application, and depend on the following:

  • Total Square Footage – In the case of non-residential developments, DCs are based on the total square footage of a proposed development.
  • Type of Development – Halton Region's current DC By-law No. 48-12 (PDF file) classifies three types of development: residential, retail and non-retail. Each type has different rates based on the demand placed on the regional infrastructure.
  • Location of Development – Halton Region's DC By-law No. 48-12 also classifies DCs based on the location of the development within Halton and its related infrastructure characteristics: built-boundary, greenfield and rural. DCs vary depending on where the proposed development is located. To learn how your proposed development site is classified, based on its location, access the Development Charges By-Law mapping tool. (Development Charges By-Law mapping tool).

The Development Charges Pamphlet summarizes the current policy and rates for the Regional Municipality of Halton (effective April 1, 2014).

Development Charge Exemptions & Support

  • Development Charges Deferral Policy
    The Development Charges Act states that DCs are due and payable upon building permit issuance. However, to assist in defraying the upfront cost of development charges or to expedite construction, an owner/developer can request that payment of DCs be deferred for eligible non- residential developments, redevelopments and expansions. The policy allows for up to 10 years of deferral with an annual repayment plan.
  • Demolition Credits
    If all or part of a building is to be demolished for redevelopment purposes, a Halton Region demolition credit can be applied to the development charge fees. To ensure timely redevelopment of a property, demolition credits are provided for a period of five years from the date of demolition issuance. The demolition credits are based on the usage and size of the structure that is demolished on the property.
  • Expansion Exemptions for Industrial Development
    The Development Charges Act, 1997 provides for an exemption to applicable DC fees if an existing industrial building is being expanded. If the total floor area is enlarged by 50 per cent or less, the DC fee for the enlarged area is zero. Or, if the total floor area is enlarged by more than 50 per cent, DCs are only payable on the amount by which the enlargement exceeds 50 per cent of the total floor area before the expansion.

We're here to help

For information about development charges in Halton, read the by-law, or contact us.