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Municipalities have $10B from developers saved up. Ontario says they should spend it now
Municipalities have $10B from developers saved up. Ontario says they should spend it now

Global News

time18-07-2025

  • Business
  • Global News

Municipalities have $10B from developers saved up. Ontario says they should spend it now

The Ford government is accusing Ontario's major towns and cities of 'sitting' on billions of unspent dollars amidst a growing housing crisis, telling them the money should be used to reduce the cost of building. According to data shared by the provincial government, Ontario's 444 municipalities have roughly $10 billion in the bank between them, funds collected from developers building new housing projects. The data, which Global News requested from the Ministry of Municipal Affairs and Housing, shows Toronto has $2.8 billion, Durham Region has $1.1 billion and the City of Ottawa has collected over $800,000. Brampton's development charge balance, as of 2023, sits around $412,000. Vaughan's is at 543,000, while Mississauga's has roughly $414,0000. It's money the provincial government argues municipalities should spend — and quickly — to reduce the cost of building new homes. Story continues below advertisement 'Municipalities across Ontario are sitting on $10 billion of development charge reserve funds — funds that could be used to get shovels in the ground,' a spokesperson for Municipal Affairs and Housing Minister Rob Flack told Global News. 'The changes we are making through the Protect Ontario by Building Faster and Smarter Act will ensure municipalities allocate at least 60 per cent of their development charge reserves, following the examples of Vaughan and Mississauga, who are already using these reserves to reduce building costs and support new housing.' Developers continue to complain that it is too expensive to build new homes in Ontario, despite various fees being reduced. Housing starts across the province are down compared to 2024, which was also a decline from the year before. Municipalities, however, argue the money they have in their reserve accounts isn't simply sitting there. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy In Toronto, for example, a spokesperson said the $2.8 billion reserve fund weighs against a 10-year building plan worth $6.1 billion. 'We are also now at a point in time where we are spending development charges at a faster pace than we are collecting them,' they said. Similarly, Mississauga — where the mayor slashed development charges — is predicting a shortfall when spending commitments are taken into account. A spokesperson for Durham Region said that 'funds currently held in the DC reserve funds have already been committed to capital projects that are either underway or about to commence.' Story continues below advertisement Vaughan, which has made cuts to its DCs, said the changes the provincial government would not have a negative impact on its balance. The Ministry of Municipal Affairs and Housing urged the cities to use the money in their accounts to unlock new housing. 'We continue to encourage municipalities across the province to use their reserve funds to build more homes in their communities,' they said in a statement. Burlington Mayor Marianne Meed-Ward, who also chairs the Big City Mayors' caucus, said the 'narrative that development charges hold up housing or make it less affordable is a destructive distraction.' 'There's this narrative, there's a single DC rate for everybody and it's too high — without any kind of understanding DCs are developed in the community, with the development industry, based on very restrictive provincial restrictions,' she said. 'So I can't collect a DC for a community centre and spend it on my fire department. I have to spend it on what it was intended for, it's very prescribed.' In 2022, the Ford government announced audits into the development charge accounts of major municipalities, alleging at the time that they were sitting on billions. Those audits were never made public. Since then, the province has made a number of changes to how development charges work, what can be collected and how they can be spent. Story continues below advertisement In its latest legislation, Ontario reduced the scope and number of studies municipalities can require for new developments, sped up certain minor variances and standardized and streamlined development charges. It also allows municipalities to more easily reduce development charges, allows residential builders to pay those fees at the time of occupancy instead of when a permit is issued and exempts long-term care homes from the fees in order to spur their development. Many of those changes, unlike previous tweaks, were suggested to the government by homebuilders and municipal advocates together. Lindsay Jones, the director of policy and government relations for the Association of Municipalities of Ontario, agreed that 'municipalities are not hoarding development charges.' She said, however, the system would benefit from changes. 'There's no question that there's been really significant shifts in the market, in the overall macroeconomic context, and in the realities of incomes for Ontarians since the development charge regime was put in place almost 30 years ago,' she said. 'No question, there are ways that it can be improved — and we are optimistic about the potential for Bill 17 to be able to have some positive impacts.' — with a file from The Canadian Press

With Ford's government in one corner and city officials in another, will Toronto's green homebuilding measures survive?
With Ford's government in one corner and city officials in another, will Toronto's green homebuilding measures survive?

Toronto Star

time23-06-2025

  • Business
  • Toronto Star

With Ford's government in one corner and city officials in another, will Toronto's green homebuilding measures survive?

A battle is brewing over the fate of environmental standards that Toronto has long imposed on homebuilders, with the Ford government and developers in one corner and city officials in the other, the Star has learned. The fight includes a stern warning from the province to the city, and harsh words on both sides. City councillors are calling Premier Doug Ford's government 'inept' at drafting housing legislation. A developer's lobby group is blasting city hall as 'arrogant' and suffering from 'utter obliviousness' about the housing market. Ford's latest legislation aimed at boosting meagre housing builds in Ontario was introduced last month as Bill 17 and quickly passed in the legislature as Protect Ontario by Building Faster and Smarter Act. The multi-pronged law includes a provision that municipalities cannot impose on developers requirements that exceed Ontario's building code, echoing a demand from developers who are suing the City of Toronto in a bid to kill its 'Green Standard' environment regulations. The Residential Construction Council of Ontario (RESCON) cheered the apparent legislated death of requirements introduced in 2010 to ensure new buildings are low-emission and resistant to climate-change impacts such as flooding. Such municipal requirements increase projects' cost and complexity, exacerbating the affordable housing crisis, RESCON said. However, 'City staff have reviewed (the new law) and determined that there is no impact to the City's ability to continue to apply the (green standard) to new development,' stated a report to Mayor Olivia Chow's executive committee that met June 17. Requirements include bicycle parking at new multi-unit residential buildings, limits on hard surfaces to minimize stormwater runoff, highrise design that allows tenants to recycle rather than put everything in trash, and window glazing on a share of lower-floor windows to minimize strikes that kill birds. City staff also said the new law's restrictions on development charges — fees levied on builders to pay for sewers, roads and other infrastructure to service each project's new residents — will cost Toronto taxpayers at least $1.9 billion over the next decade. At the meeting, Coun. Gord Perks, council's housing chair, said the law fails its name because it will not protect Ontarians or build homes faster or smarter. Coun. Mike Colle, a former Liberal MPP and one of Chow's ceremonial deputy mayors, blasted the law as the latest in a series of Ford housing bills, each producing fewer and fewer new homes. The number of Ontario housing starts between January and April was the lowest since 2009. 'You can't build housing with stupid legislation — they don't know what they're doing,' Colle said, before taking direct aim at Rob Flack, the Progressive Conservative MPP who became minister of Municipal Affairs and Housing last March. 'Now they've got some new minister of municipal affairs who used to sell farm equipment — he's in charge of building,' homes, Colle said to gasps and laughs from his executive committee colleagues. Flack's online biography says the Elgin-Middlesex-London MPP is a former chief executive of Masterfeeds, a farm animal feed company. His office, which declined to respond to Colle, says the minister also remains a proud farmer. Chow, who has boasted of her good working relationship with Ford and his government, did not join the insults, instead focusing on the predicted $1.9 billion loss in development charge revenue. She urged the province to announce how they will make the city 'whole.' Richard Lyall, RESCON president, issued a scathing rebuttal, calling city staff's determination that the green standard can continue 'hallucinatory' and 'a display of utter obliviousness.' Colle's comments, he said, were 'childish' and 'disturbing' while committee recommendations to Ford would 'reverse virtually every meaningful provision of the legislation.' Flack's deputy minister, Martha Greenberg, then weighed in, sending city manager Paul Johnson a June 19 'clarification,' obtained by the Star, that attempts to set the record straight on the fate of Toronto's green standard. 'Municipalities cannot use provisions in the Municipal Act, City of Toronto Act, and Planning Act, including site plan control, to create and require construction or demolition standards for buildings,' including environmental requirements, she wrote. Greenberg added that the ministry 'has been directed to monitor outcomes to ensure actions are not taken to bypass this.' If necessary, the government will take 'additional legislative action to ensure municipalities are adhering to the provincial framework and reducing red tape in this space.' Asked to explain the city's position, a spokesperson said the green standard 'is not a bylaw enacted under Sections 7 or 8 of the City of Toronto Act, which Bill 17 referenced. As such, staff's review of Bill 17 did not find any impact on the City's ability to implement the (green standard) as part of the development review process.' Perks, the housing chair, said that as far as he's concerned, the green standard lives — unless city council says otherwise. 'Once again the province is showing they don't know how to write a law, they're a bit inept at it, and that's why they have had to rewrite planning legislation every six months since Doug became premier ...' said the Parkdale—High Park councillor. 'The province keeps insisting that they can pass a law that makes private market housing more viable, and they keep failing at that. In the meantime, city staff have given us clear advice that the current legislation does not remove our ability to have a green standard.'

With Ford's government in one corner and city officials in the other, will Toronto's green homebuilding measures survive the brewing battle?
With Ford's government in one corner and city officials in the other, will Toronto's green homebuilding measures survive the brewing battle?

Toronto Star

time23-06-2025

  • Business
  • Toronto Star

With Ford's government in one corner and city officials in the other, will Toronto's green homebuilding measures survive the brewing battle?

A battle is brewing over the fate of environmental standards that Toronto has long imposed on homebuilders, with the Ford government and developers in one corner and city officials in the other, the Star has learned. The fight includes a stern warning from the province to the city, and harsh words on both sides. City councillors are calling Premier Doug Ford's government 'inept' at drafting housing legislation. A developer's lobby group is blasting city hall as 'arrogant' and suffering from 'utter obliviousness' about the housing market. Ford's latest legislation aimed at boosting meagre housing builds in Ontario was introduced last month as Bill 17 and quickly passed in the legislature as Protect Ontario by Building Faster and Smarter Act. The multi-pronged law includes a provision that municipalities cannot impose on developers requirements that exceed Ontario's building code, echoing a demand from developers who are suing the City of Toronto in a bid to kill its 'Green Standard' environment regulations. The Residential Construction Council of Ontario (RESCON) cheered the apparent legislated death of requirements introduced in 2010 to ensure new buildings are low-emission and resistant to climate-change impacts such as flooding. Such municipal requirements increase projects' cost and complexity, exacerbating the affordable housing crisis, RESCON said. However, 'City staff have reviewed (the new law) and determined that there is no impact to the City's ability to continue to apply the (green standard) to new development,' stated a report to Mayor Olivia Chow's executive committee that met June 17. Requirements include bicycle parking at new multi-unit residential buildings, limits on hard surfaces to minimize stormwater runoff, highrise design that allows tenants to recycle rather than put everything in trash, and window glazing on a share of lower-floor windows to minimize strikes that kill birds. City staff also said the new law's restrictions on development charges — fees levied on builders to pay for sewers, roads and other infrastructure to service each project's new residents — will cost Toronto taxpayers at least $1.9 billion over the next decade. At the meeting, Coun. Gord Perks, council's housing chair, said the law fails its name because it will not protect Ontarians or build homes faster or smarter. Coun. Mike Colle, a former Liberal MPP and one of Chow's ceremonial deputy mayors, blasted the law as the latest in a series of Ford housing bills, each producing fewer and fewer new homes. The number of Ontario housing starts between January and April was the lowest since 2009. 'You can't build housing with stupid legislation — they don't know what they're doing,' Colle said, before taking direct aim at Rob Flack, the Progressive Conservative MPP who became minister of Municipal Affairs and Housing last March. 'Now they've got some new minister of municipal affairs who used to sell farm equipment — he's in charge of building,' homes, Colle said to gasps and laughs from his executive committee colleagues. Flack's online biography says the Elgin-Middlesex-London MPP is a former chief executive of Masterfeeds, a farm animal feed company. His office, which declined to respond to Colle, says the minister also remains a proud farmer. Chow, who has boasted of her good working relationship with Ford and his government, did not join the insults, instead focusing on the predicted $1.9 billion loss in development charge revenue. She urged the province to announce how they will make the city 'whole.' Richard Lyall, RESCON president, issued a scathing rebuttal, calling city staff's determination that the green standard can continue 'hallucinatory' and 'a display of utter obliviousness.' Colle's comments, he said, were 'childish' and 'disturbing' while committee recommendations to Ford would 'reverse virtually every meaningful provision of the legislation.' Flack's deputy minister, Martha Greenberg, then weighed in, sending city manager Paul Johnson a June 19 'clarification,' obtained by the Star, that attempts to set the record straight on the fate of Toronto's green standard. 'Municipalities cannot use provisions in the Municipal Act, City of Toronto Act, and Planning Act, including site plan control, to create and require construction or demolition standards for buildings,' including environmental requirements, she wrote. Greenberg added that the ministry 'has been directed to monitor outcomes to ensure actions are not taken to bypass this.' If necessary, the government will take 'additional legislative action to ensure municipalities are adhering to the provincial framework and reducing red tape in this space.' Asked to explain the city's position, a spokesperson said the green standard 'is not a bylaw enacted under Sections 7 or 8 of the City of Toronto Act, which Bill 17 referenced. As such, staff's review of Bill 17 did not find any impact on the City's ability to implement the (green standard) as part of the development review process.' Perks, the housing chair, said that as far as he's concerned, the green standard lives — unless city council says otherwise. 'Once again the province is showing they don't know how to write a law, they're a bit inept at it, and that's why they have had to rewrite planning legislation every six months since Doug became premier ...' said the Parkdale—High Park councillor. 'The province keeps insisting that they can pass a law that makes private market housing more viable, and they keep failing at that. In the meantime, city staff have given us clear advice that the current legislation does not remove our ability to have a green standard.'

No impact to Toronto's green standard under new Ontario law, city staff says
No impact to Toronto's green standard under new Ontario law, city staff says

Hamilton Spectator

time17-06-2025

  • Business
  • Hamilton Spectator

No impact to Toronto's green standard under new Ontario law, city staff says

TORONTO - A newly released report from city staff says Toronto still has the authority to mandate new buildings meet certain climate and sustainability targets, despite concerns those powers could be undercut by a recent Ontario law. The report set to go before the city's executive committee today says there's 'no impact' to the city's ability to apply its green standard to new development under the recently passed Bill 17, Protect Ontario by Building Faster and Smarter Act. Several environmental and industry groups have suggested the law may prevent municipalities from setting standards beyond what's already required in the provincial building code. Toronto's green standard is considered a key plank of the city's climate plan and is touted as a way to make new buildings more resilient to climate-fuelled extreme weather while cutting back on emissions. Among other things, it requires new builds to retain stormwater to prevent flooding during extreme rainfall and have enough tree canopy to help stave off extreme heat. It also requires buildings to meet annual emissions targets, pushing developers to consider low-carbon heating options such as heat pumps over natural gas, and install parking spots for bikes and electric vehicles. A spokesperson for Municipal Affairs and Housing Minister Rob Flack did not directly say whether the bill would impact Toronto's ability to enforce the standard, but she did say it was adding to building costs and slowing down construction. 'Our government is focused on what the economics support, setting the same rules for everyone to get shovels in the ground to build more homes faster,' Alexandra Sanita wrote in a statement. The Atmospheric Fund, a regional agency that supports climate solutions in the Greater Toronto and Hamilton Area, has suggested green development standards may actually help accelerate development timelines by streamlining sustainability-related planning requirements into a single document with clear expectations. In a letter to the province, it pointed to data that suggested Toronto and Pickering, two municipalities with green standards, have both seen their approval timelines improve in recent years, although they remain above the national average. Bryan Purcell, a vice-president at The Atmospheric Fund who's worked closely on green standards, says he was 'somewhat surprised' but 'very encouraged' by how definitive the city's position was in the staff report. He says green standards are 'so core' to Toronto's climate objectives that 'we can't really afford to lose it.' But he said the bill had generated enough confusion to possibly stall efforts by municipalities interested in pursuing their own version of the standard. 'I think the biggest immediate impact is that I expect to see some slowdown in those cities that were on the path of developing their first green standards,' he said in an interview. The omnibus Bill 17 was rushed through the legislature and passed into law earlier this month before a public comment period closed and without further review by a legislative committee. Changes made under the new provincial law prevent municipalities from passing bylaws respecting the construction or demolition of buildings. Some law firms and regulatory bodies, including the Ontario Association of Architects, have said that change would appear to make green standards obsolete. Others have suggested the province may use the bill to limit what types of studies a city can require from a developer before approving a project. Toronto's green standard, for example, requires a developer to submit an energy modelling report that outlines how the building will keep greenhouse gas emissions in check. The OAA says green standards should not be lost, adding they help 'everyone understand energy consumption in buildings,' and position Ontario to achieve its climate targets. More than a dozen other Ontario municipalities have used Toronto as a model to come up with their own green standards. While Toronto, Halton Hills and Whitby are among those with mandatory standards, most are voluntary. The Residential Construction Council of Ontario, a vocal critic of the standard, has suggested it's adding to housing costs. RESCON sued Toronto over the standard last year in a case still before the courts. President Richard Lyall called the city staff report set to be discussed Tuesday 'delusional and unsubstantiated.' 'We're going to make our views known to the committee,' he said. This report by The Canadian Press was first published June 16, 2025. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .

Ford government bulldozes green building standards with new legislation
Ford government bulldozes green building standards with new legislation

Hamilton Spectator

time04-06-2025

  • Business
  • Hamilton Spectator

Ford government bulldozes green building standards with new legislation

The Ford government passed controversial legislation on Tuesday, stripping Ontario cities of the ability to set their own green building standards. Bill 17, the Protect Ontario by Building Faster and Smarter Act , was introduced last month by the provincial government in response to housing pressures and economic uncertainty. The legislation is intended to 'streamline development processes' and 'reduce costs' by establishing consistent construction standards across all municipalities, the government said. But critics say passage of the bill was rushed without proper consultation, denying municipalities, large and small, the ability to confront climate threats. Currently, at least 14 municipalities in Ontario, including Toronto and Hamilton, have adopted policies requiring new buildings to meet higher environmental performance benchmarks. Those will be invalidated by the new legislation. 'There is no doubt in my mind that Bill 17 will make flooding and other extreme weather impacts worse in many communities across Ontario,' said How-Sen Chong, climate campaigner at the Toronto Environmental Alliance. The changes mean municipalities are not allowed to pass bylaws for the construction or demolition of buildings — a move widely seen by experts and advocates as targeting municipal green building standards. The legislation also requires municipal councils to get written approval from the provincial minister of municipal affairs and housing before making certain changes to their official plans, further restricting cities' control over planning and development. 'Unfortunately, late last week, Doug Ford's government pushed the bill directly to the legislature without going through the committee process first,' Chong said. 'The problem with that is committees are where you hear from experts, organizations, and individuals who are impacted — or could be impacted — by a bill.' The bill now includes new regulations that limit what municipalities can request from developers during the planning process. Under the new legislation, cities are no longer allowed to require information on key design and environmental factors like shadow impact, wind conditions, urban design alignment or exterior lighting. Both Toronto and Hamilton are reviewing the implications of Bill 17. In Toronto, a city spokesperson said staff have been asked to prepare a report on the bill's potential impacts for the executive committee meeting later this month and are continuing to assess the proposed changes. Bryan Purcell, vice president of policy and programs at The Atmospheric Fund, said Bill 17 would severely undermine cities' ability to regulate development, leading to higher emissions and less climate-resilient buildings. 'Municipalities have a legislated responsibility to protect public health and environmental wellbeing,' Purcell said. 'Restricting their ability to exercise those duties will not protect Ontario or build housing faster. It will only reduce the quality of new housing and communities and expose Ontarian residents to greater environmental risks.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .

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