Ottawa council approves development charge increases despite potential impact on federal funding

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Ottawa council approves development charge increases despite potential impact on federal funding
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Federal Housing Minister has warned cities that increasing development fees would risk their ability to access the Canada Housing Infrastructure Fund

New homes are built in Ottawa on Aug. 14, 2023. Ottawa city councillors voted in favour of a bylaw to increase development charges on new housing construction, which will add up to $6,200 to the cost of a single-family home. Provincial legislation requires cities revisit development charges every five years and Ottawa's bylaw on the matter expires this month.

Federal Housing Minister Sean Fraser recently warned cities that increasing development charges would jeopardize their ability to access the $6-billion Canada Housing Infrastructure Fund. The fund was announced in last month’s budget and includes a condition that local governments freeze development charges as of April 2 for three years.

“So that would be a big risk for us to take right now,” Councillor Glen Gower said about pausing that sort of revenue, adding that “we don’t have full information from the federal government yet.”programs that require cities and provinces to make changes to density, development charges and other policies in order to qualify for billions of dollars for new housing construction. The other is theMs.

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