Hamilton City Council recently made amendments to the city’s Development Charges By-law in an attempt to help fight the housing crisis.
Council approved a temporary two-year 20 per cent cut to development charges, which will start on Sept. 1, 2025, and continue until Aug. 31, 2027.
A city report says that development charge rates for a single detached dwelling are currently $98,511 per unit and will be reduced to $78,809 with the short-term exemption.
The city collects development charges to help fund capital costs associated with growth, such as roads, wastewater systems, and emergency services.
The charges are payable at the time of building permit issuance
It should be noted that the rates will also be decreased temporarily for non-residential development. The current rate for non-residential is $45.09 per square foot and will be reduced to $36.07 per square foot.
In the motion, Council also directed staff to propose a streamlined process for non-profit housing developments to improve access to the existing exemption.
Additionally, Government Relations staff were directed to engage with provincial and federal levels of government “to advocate for greater intergovernmental collaboration and support in addressing municipal infrastructure funding challenges with the objective of minimizing the financial burden of Development Charge exemptions on property taxpayers and rate payers.”
Housing Secretariat and Housing Services staff will also be assessing the feasibility of reinstating a Down Payment Assistance Program, including potential funding sources and delivery models.
The 20 per cent exemption is expected to cost the city $9.6 million per year in lost revenue.
Staff say that the exemption costs for this year can be funded within the 2025 Council-approved budget, “with no levy or user fee impact expected for 2025.”
However, if development were to increase significantly from the current pace, staff say that “a levy impact may arise,” which will be “assessed and addressed through the 2026 Budget.”
The city says that the temporary partial exemption “is intended to support the development industry and protect the construction labour market during a period of economic uncertainty.”
Indeed, Mike Collins-Williams of the West End Home Builders’ Association, a nonprofit that represents 300 land development, home building, and renovation member companies, told the Council that the situation “keeps getting worse.”
“In the entirety of my 25 years in the field, I’ve never seen anything as bad as this – not in the 2008 financial crisis, not ever. In fact, it hasn’t been this bad since the early 1990s. And by many accounts, it is maybe even getting worse,” he explained.
“Right now, the housing market isn’t just stalling, it’s coming to a grinding halt. People simply aren’t buying new homes. And when that happens, the ripple effect is outward. Job losses, stalled developments, and fewer options for families looking for a place to live.”
Collins-Williams said that they recommend a 50 per cent reduction in the charges, which would help reduce building costs further so that developers can reduce prices.
City staff will provide annual reports on the impact of the exemptions.
The motion to implement the temporary 20 per cent reduction in development charges passed at Council in a 9-3 vote.
Those against the reduction voiced concerns about municipal tax rate impacts and skepticism that the measure would result in decreased home prices.
VOTING RESULTS
Motion: To implement the temporary 20 per cent reduction to development charges.
IN FAVOUR (9): Maureen Wilson (Ward 1 – Chedoke-Cootes-Westdale), Nrinder Nann (Ward 3 – East Hamilton Centre), Tammy Hwang (Ward 4 – Hamilton East), Matt Francis (Ward 5 – Hamilton East-Stoney Creek), Tom Jackson (Ward 6 – East Mountain), Jeff Beattie (Ward 10 – Stoney Creek-Fruitland-Winona), Craig Cassar (Ward 12 – Ancaster-West Flamborough), Mike Spadafora (Ward 14 – West Mountain), Mayor Andrea Horwath.
AGAINST (3): Cameron Kroetsch (Ward 2 – Downtown Hamilton), Brad Clark (Ward 9 – Upper Stoney Creek), Alex Wilson (Ward 13 – Dundas-Central Flamborough).
ABSENT (3): Esther Pauls (Ward 7 – Central Mountain), Mark Tadeson (Ward 11 – Glanbrook-Binbrook-Mount Hope), Ted McMeekin (Ward 15 – East Flamborough-Waterdown).
VACANT (1): Ward 8 – West/Central Mountain
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
