City Communications people finally get out a detailed report on what Council decided to do about Development charges

By Gazette Staff

March 5th, 2026

BURLINGTON, ON

Council members took hours to get to the point where they all agreed on what Staff were being asked to bring back to Council in April.  Councillor Stolte needed several explanations before she felt comfortable with what the Commissioner of Development and Growth was trying to explain to her.

At a Special Meeting of Council on Monday, March 2, Burlington City Council directed staff to report back with options to support increased housing supply. This includes potential changes to broaden non-DC programs through a new or amended Affordable Rental Housing Community Improvement Plan (ARHCIP) funded from sources other than property taxes, as well as other time-limited options that could provide DC relief. No new incentives or program changes were approved at the Special Meeting of Council. The report back will outline impacts, funding sources, and implementation considerations to support fiscally responsible decision-making.

To advance this work, Council referred Report DGM-03-26 to the Commissioner of Development & Growth Management and the Chief Financial Officer, with direction to return to Committee of the Whole on April 13, 2026, with further analysis and options.

Council also unanimously directed that the staff report back include an option based on a “made whole” approach: Burlington would only reduce DCs where replacement provincial or federal funding is secured, reducing DCs dollar-for-dollar up to and including permanent elimination if fully matched. No changes to DCs were made at the March Special Council meeting. The unanimous vote reflects Council’s shared commitment to advancing housing supply solutions while maintaining fiscal responsibility.

Anyone interested in speaking to this item is encouraged to register as a delegate at burlington.ca/delegate or by contacting Legal and Legislative Services at clerks@burlington.ca no later than noon on April 10, 2026. If you are attending the meeting in person, you can register to speak during the meeting by following instructions provided during the meeting.

 

Frequently Asked Questions (FAQ) on Options for the Temporary Elimination of Development Charges (DGM-03-26) Staff Direction (SD)

Quick Snapshot

• Development Charges (DCs) are collected to support growth-related capital costs—for example, roads, storm drainage, fire stations/vehicles, recreation centres and libraries—and help service population growth.
• Report DGM-03-26 presents two main pathways for temporary DC relief: (1) amending the City’s DC by-law, or (2) amending the City’s Affordable Rental Housing Community Improvement Plan (ARHCIP).
  • By-law approach: amend the City’s Development Charges by-law to apply a temporary DC reduction or exemption more broadly through the by-law itself.
  • Program approach (ARHCIP): amend the Affordable Rental Housing Community Improvement Plan to deliver time-limited, criteria-based incentives—potentially including DC-related relief or other non-DC incentives—through a defined program framework.
• The report notes that if DC exemptions or reductions are provided, the Development Charges Act restricts how any resulting shortfall can be addressed, and the City would need to identify an alternate funding source to cover the impact.
• Council has not approved a new DC exemption or elimination program at this time.
• Council is directing staff to return with specific options and funding approaches for consideration at Committee of the Whole on April 13, 2026.

FAQs

1) What are Development Charges (DCs)?

Development Charges (DCs) are one-time charges collected on new development to help pay for the growth-related portion of capital infrastructure and services needed to support new homes and businesses. DCs are authorized and governed by Ontario’s Development Charges Act, 1997.

2) Why do municipalities use DCs?

DCs are a funding tool provided by the Province to fund growth-related infrastructure such as roads, water and wastewater, recreation centres, etc.

3) Who pays DCs to the City?

DCs are paid by the developer/landowner through the development process. Homebuyers do not receive a separate City invoice for DCs at closing, but DCs may be considered as part of a project’s overall costs and reflected in market pricing.

4) Are there only “City of Burlington” DCs?

No. “Total DCs” may include charges set by the City of Burlington, Halton Region, and Halton school boards. Burlington City Council only has authority to make changes to Burlington’s Development Charges.

5) Can the City spend DC money on anything it wants?

No. DCs are governed by provincial legislation and are intended for eligible growth-related capital costs and projects.

6) Where can residents see Burlington’s current DC rates and rules?

The City posts DC rates and key documents online, including current by-laws and the DC background study. Rates are indexed annually on April 1.

7) Can the City reduce or eliminate DCs?

If Council chooses to reduce or exempt DCs, provincial law requires the City to identify how the resulting shortfall will be funded.

8) Does eliminating DCs automatically mean property taxes go up?

Not automatically. It depends on how the reduction is funded. Current direction focuses on options funded from sources other than property taxes, such as provincial and/or federal funding.

9) How can upper levels of government make the City “whole”?

Another government program would need to provide earmarked funding that replaces the DC revenue being reduced, dollar-for-dollar. This could include funding like the Building Faster Fund (BFF) or the Canada Housing Infrastructure Fund.

10) What is a Community Improvement Plan (CIP)?

A CIP is a planning tool under the Planning Act that allows the City to set clear eligibility rules and conditions for incentives (e.g., grants, loans, fee waivers). Burlington’s ARHCIP was approved in 2025.

11) What is the ARHCIP and why is it central in this report?

The ARHCIP is a flexible tool that allows a municipality to provide incentives to landowners to advance policy objectives like housing needs.

12) What ARHCIP options are being considered for temporary relief?

• Option 2a: amend the ARHCIP to develop a new, temporary DC exemption program with defined criteria.
• Option 2b: amend the ARHCIP to adjust existing programs to temporarily expand eligibility.

13) What does the ARHCIP currently focus on?

The current ARHCIP is built on units where the tenure is rental and units meet the provincial definition of affordability.

14) What is Council asking the Province and Federal government to commit to?

Council has stated Burlington would only reduce DCs if senior governments step in with new, dedicated funding to replace lost revenue to ensure costs aren’t shifted onto property taxpayers.

15) Would any DC relief apply to all new housing?

No. The focus is on affordable housing and/or other clearly defined housing policy goals.

16) What about public engagement?

A CIP amendment typically requires a statutory public process, including notice and a public meeting. Residents can participate through the City’s standard delegation process.

17) What has the City already done to support housing and development readiness?

Actions include adopting a DC by-law with reduced rates, advancing a Housing Strategy, establishing a Pipeline to Permit Committee, and implementing a Housing Accelerator Fund action plan.

18) How do provincial changes affect DC timing and amounts?

Recent provincial changes include deferring DC payment to occupancy for residential development and providing exemptions for certain affordable/non-profit housing.

What happens next:

On April 13, 2026, Committee of the Whole is expected to receive a staff report back including:

• Option 2b from report DGM-03-26.
• A potential new or amended ARHCIP funded from a source other than property taxes.
• A “made whole” approach where DCs are reduced dollar-for-dollar only when replacement funding is secured.