Development Charges, Community Benefits Charges and Parkland Dedication

Community Benefits Charges

Community Benefits Charges Public Engagement

The City would like to hear and understand resident and stakeholder opinions on the need to implement a CBC and what other factors we need to consider in implementing this strategy and by-law.

We want to hear what you think

Through the month of April and May we will make our draft documents available in full format for public consumption and commenting before finalizing and bringing them forward to Committee and Council.

Visit to provide feedback.

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