Development Charges, Community Benefits Charges and Parkland Dedication

Community Benefits Charges

The City of Hamilton has begun work to establish a new Community Benefits Charge (CBC) Strategy and By-law under the Planning Act. The proposed Community Benefits Charge Strategy and By-law will be presented to Hamilton City Council in June 2022 for consideration.

Key facts about the CBC

  • Changes to the Planning Act include a tool that allows municipalities to impose a Community Benefits Charges on eligible high-density developments or redevelopments
  • The new CBC legislation replaces the prior Section 37 of the Planning Act, which allowed municipalities to secure community benefits through agreements related to re-zoning that allowed increased height and/or density over and above exiting planning permissions
  • Municipalities must pass a CBC Strategy and By-law to utilize this financing tool
  • CBC’s can fund capital costs of municipal services that are not being funded under a parkland by-law or a DC by-law

What is a CBC?

  • A new fee/charge paid by developers when a building permit is issued
  • A fee/charge to be imposed in addition to the Development Charges (DC) and Parkland dedication/payment or cash-in-lieu of parkland provisions of the Planning Act
  • A charge on developments with five or more storeys and 10 or more residential units
  • A cap at 4% of the land value on the day before a building permit is issued

Note:  A CBC is NOT the former Section 37 (Planning Act) bonusing density tool, OR a Community Benefit Agreement.

How do CBC’s work?

  • Growth-related capital infrastructure and services are eligible to be funded from CBC revenue including, but not limited to, the following:
    • Services being removed from DC collections as of September 18, 2022 (Parking, Airport and some Studies)
    • Other current ineligible DC services such as:
      • Municipal Administration Building Expansion
      • Cultural Initiatives (e.g. Museums, Arts Centres, Public Arts, Heritage Preservation)
      • Public Realm Improvements (e.g. Community Gardens, Space for Non-Profits)
      • Expansion to Landfill
    • Parkland Acquisition (in excess of parkland dedication provisions of the Planning Act)
    • Eligible DC infrastructure
  • Developments EXEMPT from a CBC (where specific criteria is met as set out in Ontario Regulation 509/20) include:
    • Long-term care homes and retirement homes
    • Universities, colleges, and Indigenous Institutes
    • Memorial homes, clubhouses or athletic grounds of the Royal Canadian Legion
    • Hospices
    • Non-profit housing

Documents

Staff Presentation to Audit, Finance and Administration Committee on June 16, 2022: