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REPORT TO: Finance and Corporate Services Committee <br />DATE OF MEETING: August31, 2020 <br />SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 <br />PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 <br />WARD (S) INVOLVED: All <br />DATE OF REPORT:July 24, 2020 <br />REPORT NO.: FIN-20-054 <br />SUBJECT: Development Charge(DC) & Community Benefit Charge (CBC) Update <br />___________________________________________________________________________ <br />RECOMMENDATION: <br />That financial policy FIN-PLA-XXXX “Development Charge Interest” be approved, <br />including an annual interest rate of Prime + 2% for: <br />Development Charge Rate Freezes <br />Development Charge Deferrals related to institutional and rental housing <br />development; and <br />That no interest be charged for Development Charge Deferrals related to non-profit <br />housing development. <br />BACKGROUND: <br />As part of the More Homes More Choices Act(Bill 108),the Plan to Build Ontario Together Act <br />(Bill 138),and the COVID-19 Economic Recovery Act(Bill 197),the Provincial government <br />enactedchanges to existing development legislation including the Development Charges Act, <br />and introduced new development legislation by creating a Community Benefits Charge. <br />Amongst other changes, the new legislation included two new provisions allowingdevelopers <br />tomodify their typicaldevelopment charges. The new provisions allow qualifying <br />developments to: <br />Freeze development chargeratesthrough the development process(section 26.2) <br />Defer development chargepaymentsover multiple years (section 26.1) <br />The new legislation also allows municipalities to charge interest when either of these <br />provisions is employed. <br />The purpose of this reportis to briefly outline the changes to the Development Charges Act <br />and introduce the proposed policy related to development charge interest. <br />REPORT: <br />1)Overview of Development Charges Act Changes <br />The end result of the multiple pieces of development legislation appears to be generally <br />positivefor municipalities.Changes proposed in earlier Bills would have been very costly to <br />municipalities and stifled growth, but the results of Bill 197 should allow municipalities to continue <br />growing and providing services to new residents. Some highlights of Bill 197 are provided below. <br />*** This information is available in accessible formats upon request. *** <br />Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. <br />2 - 1 <br />