TV Ontario is discussing the ongoing situation in Burlington.
If the city council continues like this, it could become a national issue: Mayor Meed Ward would welcome that.
Burlington mayor Marianne Meed Ward was, until recently, doubtful about claims from the provincial government and developers that lowering development charges on new homes would lead to much affordable housing being built. My colleague Steve Paikin reported last October that Meed Ward believed cutting development charges – the fees municipalities in Ontario charge on new homes to help pay for infrastructure – wouldn’t do much by itself to tackle the housing crisis.
High-rise towers like this one have received approvals and permits but aren’t being constructed. The market just isn’t there.
However, circumstances have shifted, and Meed Ward has had a change of heart.
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“According to Canada Mortgage and Housing Corporation Data, Burlington may be lucky to see 300 homes built this year; if we’re really fortunate, we might reach 500. Our goal under the Building Faster Fund is 2,900,” says Meed Ward. “Development charges alone won’t solve everything; that’s a viewpoint I’ve always held and still maintain… but there are steps we can take.”
With this in mind, Meed Ward and her fellow council members are considering eliminating development charges entirely for two years after previously deciding to reduce them. Other cities like Mississauga and Vaughan have also opted to lower their fees, but Burlington’s proposal would be among the most extensive even though it’s temporary.
The discussion hasn’t been smooth sailing: while the idea passed at a committee meeting earlier this month and was presented before council on February 17, it was pushed back to a special meeting scheduled for March 2. That meeting may also get postponed by a month as city staff conduct a deeper analysis of how a development charge freeze could impact finances.
Councillor Rory Nisan
Councillor Rory Nisan isn’t against reducing development charges but wants assurance that Burlington residents won’t face financial repercussions due to policy changes.
“I want us to be made whole,” Nisan states. “I want clarity on whether there’s any funding source we can tap into. If we receive funding, then great. We’ll offset our [development charges] dollar-for-dollar with every dollar of support we get toward them. But right now, no funding is available.”
Nisan worries that implementing the moratorium on development charges could drain the city’s reserve funds meant for community projects – effectively putting local parks or firehouses at risk just so housing can grow. Another concern is increasing municipal debt which taxpayers would eventually need to repay.
Housing Minister Rob Flack stopped short of an unambiguous promise to keep municipalities whole for any reductions.
Both Premier Doug Ford and his housing minister Rob Flack have encouraged municipalities to lower their development charges in order to promote more home construction but haven’t provided clear guarantees about compensating municipalities for these cuts. Flack’s office declined an interview with TVO Today but sent an email statement through spokesperson Michael Minzak instead.
“We applaud Burlington for taking steps to pause development charges following Vaughan, Mississauga, and Peel,” said Minzak’s statement. “We understand that these fees can hinder progress in starting new homes; Burlington’s move supports our government efforts aimed at reducing such costs across Ontario.”
The province is exploring additional measures aimed at lowering expenses tied to new housing developments including expanding HST rebates for new homes as well as shifting water and sewer service costs onto specific municipal corporations instead of onto property tax bills. These strategies aren’t mutually exclusive-a rebate combined with reduced development charges could further ease housing costs.
The home building sector naturally shows excitement over potential actions happening in Burlington while cautioning that given today’s tough economic climate surrounding home sales in Ontario, removing development fees alone won’t magically create abundant housing in western GTA.
Mike Collins-Williams from West End Home Builders Association commented: “Every little bit helps; all three levels of government need involvement in finding solutions.”
“By itself it won’t drastically alter economic conditions,” noted Mike Collins-Williams from West End Home Builders Association while commending Meed Ward alongside Burlington council for stepping up on this matter. “Every little bit helps; our perspective is all three levels of government must contribute towards resolving these challenges.”
“I hope municipalities wake up during this time; essentially saying it’s time out regarding high development fees,” added Collins-Williams. “Everyone understands infrastructure must be funded somehow-development fees are essential tools-but they’ve spiraled out of control over recent years.”
The decision made by council will depend heavily upon assessing possible financial impacts on Burlington yet both Collins-Williams and Meed Ward highlight one key fact: without construction taking place there won’t be any collection from those charges-“nothing from nothing is still nothing,” as Premier Ford stated last year. Collins-Williams pointed out voters don’t need faith in developers’ goodwill regarding whether price reductions happen with any newly constructed homes thanks solely due because of reduced fees imposed during construction phase either way.
“The market has settled down considerably,” remarked Collins-Williams adding candidly if conditions were booming pricing structure dictated outcomes rather than fee cuts affecting buyer prices directly or indirectly through market competition pressures facing builders today who need attractive offers simply move products quickly off shelves.”
Meed Ward : “Let ’ s focus on policy , not personal attacks , but let ’ s also make sure that we respect people enough give them good accurate information. ”
Meed Ward will face re-election along with other Ontario municipal politicians come October if she decides run again. In theory she could use strong-mayor powers enact measure despite opposing views within council ; however she confirms plans not go down route (She did employ her authority direct staff carry out financial analysis related initiative.) She isn ’ t worried backlash arising around election period associated consequences stemming from decisions taken now.
“My main worry involves misinformation circulating communities regarding topic at hand since many don ’ t fully grasp concept behind Development Charges ,” stated Meed ward firmly adding : ” Let ‘s concentrate policies rather than personal insults ; let’s ensure everyone receives quality accurate information instead.”
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Councillor Rory Nisan
Councillor Rory Nisan isn’t against reducing development charges but wants assurance that Burlington residents won’t face financial repercussions due to policy changes.
“I want us to be made whole,” Nisan states. “I want clarity on whether there’s any funding source we can tap into. If we receive funding, then great. We’ll offset our [development charges] dollar-for-dollar with every dollar of support we get toward them. But right now, no funding is available.”
Nisan worries that implementing the moratorium on development charges could drain the city’s reserve funds meant for community projects – effectively putting local parks or firehouses at risk just so housing can grow. Another concern is increasing municipal debt which taxpayers would eventually need to repay.
Housing Minister Rob Flack stopped short of an unambiguous promise to keep municipalities whole for any reductions.
Both Premier Doug Ford and his housing minister Rob Flack have encouraged municipalities to lower their development charges in order to promote more home construction but haven’t provided clear guarantees about compensating municipalities for these cuts. Flack’s office declined an interview with TVO Today but sent an email statement through spokesperson Michael Minzak instead.
“We applaud Burlington for taking steps to pause development charges following Vaughan, Mississauga, and Peel,” said Minzak’s statement. “We understand that these fees can hinder progress in starting new homes; Burlington’s move supports our government efforts aimed at reducing such costs across Ontario.”
The province is exploring additional measures aimed at lowering expenses tied to new housing developments including expanding HST rebates for new homes as well as shifting water and sewer service costs onto specific municipal corporations instead of onto property tax bills. These strategies aren’t mutually exclusive-a rebate combined with reduced development charges could further ease housing costs.
The home building sector naturally shows excitement over potential actions happening in Burlington while cautioning that given today’s tough economic climate surrounding home sales in Ontario, removing development fees alone won’t magically create abundant housing in western GTA.
Mike Collins-Williams from West End Home Builders Association commented: “Every little bit helps; all three levels of government need involvement in finding solutions.”
“By itself it won’t drastically alter economic conditions,” noted Mike Collins-Williams from West End Home Builders Association while commending Meed Ward alongside Burlington council for stepping up on this matter. “Every little bit helps; our perspective is all three levels of government must contribute towards resolving these challenges.”
“I hope municipalities wake up during this time; essentially saying it’s time out regarding high development fees,” added Collins-Williams. “Everyone understands infrastructure must be funded somehow-development fees are essential tools-but they’ve spiraled out of control over recent years.”
The decision made by council will depend heavily upon assessing possible financial impacts on Burlington yet both Collins-Williams and Meed Ward highlight one key fact: without construction taking place there won’t be any collection from those charges-“nothing from nothing is still nothing,” as Premier Ford stated last year. Collins-Williams pointed out voters don’t need faith in developers’ goodwill regarding whether price reductions happen with any newly constructed homes thanks solely due because of reduced fees imposed during construction phase either way.
“The market has settled down considerably,” remarked Collins-Williams adding candidly if conditions were booming pricing structure dictated outcomes rather than fee cuts affecting buyer prices directly or indirectly through market competition pressures facing builders today who need attractive offers simply move products quickly off shelves.”
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