May 15, 2024 — West End Home Builders’ Association
Yesterday, the City of Burlington’s Committee of the Whole unanimously endorsed a city-wide development charge reduction. In an unprecedented move across Ontario, Burlington brought forward an approximately $1500 reduction to the city’s per-unit development charge rate (or taxes levied on the construction of new housing). This move demonstrates a clear recognition on behalf of the city and council, that to address the housing crisis, all levels of government need to reduce taxation and other costs to build new homes.
The City of Burlington has adopted a housing pledge of building 29,000 units over the next ten years. The proposed development charge reduction signifies Burlington is taking the housing crisis seriously and working in partnership with industry to ensure Burlington is a place where everyone is welcome. Burlington’s decision builds on the recognition at all levels of government that new housing supply will significantly help to alleviate our housing crisis. Yesterday’s vote was a decision to lower the impact of local taxes on new housing in Burlington. The decision helps to position Burlington to achieve ambitious housing targets and hopefully receive provincial Building Faster Fund dollars and additional federal Housing Accelerator Fund dollars.
“The cost of development charges has a significant impact on housing affordability as these taxes are passed onto people buying or renting homes. Typically, municipalities increase their development charge rates every five years, however, Burlington is showing leadership in a housing crisis and has decided to do the exact opposite. City staff sharpened their pencils looking carefully at their budgets and given the housing crisis deferred collecting development charges on some projects that are unlikely to be built within the next 10 years,” noted West End HBA CEO Mike Collins-Williams. “Burlington is one of the only municipalities in Ontario that has made this bold and pragmatic decision to lower development charges in an effort to spur new home construction and address the crisis we find ourselves in.”
At the March 25 Housing Summit hosted by WE HBA, OHBA, and BILD, the industry discussed the following principle: “It is profoundly unfair on an intergenerational level to download the costs of infrastructure built to last generations into the amortized mortgages of young people, newcomers, and new home buyers.” The West End HBA was pleased to support the staff recommendations to lower the development charges, deferring the collection of fees until closer to the time when the new infrastructure projects will be realized.
Recent reports from Urbanation identify that the market for new condo construction is the worst it has been since the 2009 financial crisis. “Yesterday’s decision indicates a willingness on behalf of the City of Burlington to go above and beyond while doing their part to relieve the housing crisis,” said Mike Collins-Williams. “This decision to lower development charges will position Burlington to receive federal and provincial funding that is tied to the number of new homes built — such as the Building Faster Fund and the Housing Accelerator Fund.”
Burlington’s Committee of the Whole decision is scheduled to be ratified on May 21, 2024. WE HBA is hopeful that council will support the committee’s decision and build on the city’s commitment to building 29,000 new homes for Burlington in the next ten years.
