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Home My WebLink AboutFIN-2025-453 - Municipal Act Section 357 (g) Applications - Repairs and RenovationsStaff Report Financial Services Department www.kitchener.ca REPORT TO: Planning and Strategic Initiatives Committee DATE OF MEETING: December 1, 2025 SUBMITTED BY: Saleh Saleh, Director, Revenue Division, 519-904-6308 PREPARED BY: Faye West, Manager, Taxation & Payment Processing, 519-783-8022 WARD(S) INVOLVED: ALL DATE OF REPORT: October 20, 2025 REPORT NO.: FIN -2025-453 SUBJECT: Municipal Act Section 357(g) Applications- Repairs and Renovations RECOMMENDATION: That Council approve the draft policy attached as Appendix A to report FIN -2025-453. REPORT HIGHLIGHTS: • The purpose of this report is to get council endorsement for a policy related to applications under Section 357 (g) the Repairs and Renovations category of the Municipal Act, 2001. • It is expected that a policy outlining the requirements for the applicants will provide for transparency and better customer service. • This report supports the achievement of the city's strategic vision through the delivery of core service. • There are no financial implications. BACKGROUND: Section 357 of the Act gives local municipalities the authority to write off, cancel, reduce, or refund all or part of taxes levied on land, subject to any procedural requirements which apply to the provision, in the year where applications are made for reasons laid out in these sections of the Act. Council has previously delegated authority to adjust taxes related to Section 357 to staff through a by-law. Staff are proposing that Council endorse the policy (Attachment A) to this report to promote transparency and consistency as it relates to applications under Section 357 (g) the Repairs and Renovations category. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 117 of 271 REPORT: In 2024, Council delegated the decision-making authority on all Section 357 applications to staff to enhance customer service and provide property owners with timely adjustments. Property owners retain the right to appeal against any decision through the Assessment Review Board (ARB). Applications under Section 357(g) the Repairs and Renovations category are more complex because they require additional documentation, such as building permits, photos of the renovation area, contractor invoices, and possibly a site visit by staff. Following a recent ARB appeal hearing, the City was encouraged to adopt a Council -endorsed policy to ensure transparency regarding the City's requirements for applications processed under Section 357(g). In 2025, the City received 17 applications under the Repairs and Renovations category. Ten applications were rejected for various reasons including missing information or late submission. For approved applications, a rebate of up to 30% of the property taxes related to the area subject to the repairs or renovations is provided to the property owner. It is expected that the policy will provide guidance to property owners and to staff when processing applications for property tax relief submitted under Section 357(g) of the Municipal Act, 2001, for situations where repairs or renovations have prevented the normal use of a property for a minimum of three months. The attached policy also outlines clear expectations for applicants under the Repairs and Renovations category, including the supporting documents required to process their application. STRATEGIC PLAN ALIGNMENT: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: There are no financial implications associated with this report. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: • Municipal Act, 2001 • Assessment Act Page 118 of 271 • FIN -2024-190: Delegated Authority for Property Tax Adjustments APPROVED BY: Jonathan Lautenbach, CFO Financial Services ATTACHMENTS: Attachment A — Municipal Act Section 357 (g) Applications Policy Page 119 of 271 POLICY CAT -SUB-#### Property Tax Rebate: Municipal Act. 2001, Category Sub -category Section 357 (g) Applications FIN - Finance GRA - Grants, Rebates & Incentives Approval Type Department/Division Author and Position COUNCIL Financial Manager Taxation and Payment Services/Revenue Processing Division Date Approved " Last Next Review Date December 1, 2025 Reviewed/Amended December 1 2030 December 1, 2025 Related Policies or Procedures • Municipal Act, Assessment Act Policy Purpose The purpose of this policy is to provide guidance to property owners and to staff when processing applications for property tax relief submitted under Section 357(g) of the Municipal Act, 2001, for situations where repairs or renovations have prevented the normal use of a property for a minimum of three months. Definitions N/A Policy Scope The Municipal Act, 2001 and the Assessment Act serving as the base, this policy provides guidance for property tax relief applications submitted under Section 357(g) of the Municipal Act, 2001, for situations where repairs or renovations have prevented the normal use of a property for a minimum of three months. 11 A3of 271 Application ❑X Employees (Indicate below which categories apply: All employees, Permanent full-time, Temporary full-time, Continuous part- time, Casual, Probationary, Student, Management, Non-union) • � sll.ji.�:�.1k.....p.!!."....:t�:�.Il .....::i..!!:E .....t��...... ,Intei�m...:text:::,. ❑ Unions (Indicate below which categories apply: All Unions, COPE 68 Civic, COPE 68 Mechanics, COPE 791, IATSE, IBEW, KPFFA) ('31liclk .II."....:t .I� .....Il; r !!..: c ...... ,lr ei�::...:text:::,. ............................................... ❑ Council ❑ Specified Positions: I[1.ck.....�.�!r:....:�;ajl:�.....l:a .!!'::.....:�:p...... li�n.:�::��.!!':....:�:.:q:::.. ❑ Other: Clhcllc oir tap heire to einteii,° text. Policy Content OBJECTIVES I. Provide guidance to property owners and staff for applications for property tax relief under Section 357(g) of the Municipal Act, 2001, for situations where repairs or renovations have prevented the normal use of a property for a minimum of three months. II. Establish required documentation for application under Section 357(g) of the Municipal Act, 2001. GOVERNING PRINCIPLES I. The procedure of reviewing, accepting, or rejecting Municipal Act, 2001, Section 357 (g) applications should be applied universally, uniformly, and consistently. II. The City Treasurer may exercise discretion in furthering the objectives of this policy. III. The City Treasurer may take all means necessary provided in the Municipal Act, 2001 to balance taxpayers' interests with that of the city. In so doing, The City Treasurer will strive to keep to minimum the administrative and legal costs. IV. At all times, the City should take reasonable care to respect and protect the interest of the taxpayer as well as that of the City, including the rights to privacy and confidentiality. REQUIRED DOCUMENTATION I. It is the responsibility of the applicant must provide proof of work completed or in progress. II. The proof of work being completed should include: a. Date stamped pictures of before and after work. b. A letter from the contractor outlining the work to be undertaken. e21 A 3of 271 c. Copy of paid contractor invoices. d. Building permits, demolition permit, occupancy permit. III. All applications must be received by the City of Kitchener by February 28th of the year following the year in respect of which the application is made. Applications received past this deadline will not be accepted. DECISION PROCESS I. Staff at their discretion, may inspect the subject property or require further information from the property owner. II. A report recommending accepting or rejecting the applications will be presented to Council twice a year III. If the application is approved, a rebate of up to 30% of the property taxes related to the area subject to the repairs and renovations will be provided to the applicant. IV. If the application is rejected, the applicant will be notified of the decision. Policy History Administrative and Housekeeping Changes Date Nature of Change 2025-01-01 New Policy e312Af 271