Development Charges | City of Hamilton

Consolidated Development Charges By-law

New Rates in effect December 1, 2024

Consolidated Development Charge By-Law 24-072

Development Charges (DCs) are one-time fees collected from developers when a building permit is issued. These fees help pay for the infrastructure needed to support growth, including roads, transit, water and sewer infrastructure, fire and police services.

Development Charges By-Law Review Underway

The City of Hamilton is reviewing its Development Charges (DC) By-Law in response to current economic conditions and the slowdown in Hamilton’s development market.

As part of this review process, the City is meeting with industry experts from the commercial, industrial, and residential development communities to discuss proposed amendments to the By-Law. Two sector-specific workshops are scheduled:

Industrial and Commercial Developers Workshop – Tuesday, May 14, 2025
Residential Developers Workshop – Thursday, May 16, 2025

Each session will include a presentation of the proposed changes and provide an opportunity for dialogue with industry experts.

In response to current economic conditions, reduced building activity, and related job loss, the City of Hamilton is proposing targeted amendments to the DC By-Law. These changes aim to support ongoing development projects while balancing the City’s financial responsibilities.

Proposed changes for discussion include:

Letting Council decide whether to stop future automatic fee increases
Giving developers more time to get permits at the current DC rate (from 6 months to 12 months)
Keeping the current discount for residential projects in the Downtown area for 2 more years
Keeping the current discount for non-manufacturing industrial projects for 2 more years
Charging the same lower DC rate to all apartment units, including 2- and 3-bedroom units
Giving developers 10 years (instead of 5) to qualify for a DC credit after demolishing a building

The development community can also suggest additional changes for the City to consider.

Key consideration
On May 12, 2025, the Minister of Municipal Affairs and Housing introduced Bill 17, which proposes more changes to the Development Charges Act. The City will review this new bill to understand how it might affect the proposed updates being considered.

Following the workshops, a Public Meeting will be held on Wednesday, June 12, 2025, at the Audit, Finance and Administration Committee. An information report summarizing the proposed amendments and feedback from the development community will be presented.

Register to speak at the Public Meeting on June 12, 2025, or Send your written comments by email or mail before 12:00 p.m. (noon) on June 11, 2025 to:

Tamara Bates, Legislative Coordinator
Audit, Finance and Administration Committee
City Clerk’s Office, 1st Floor
71 Main Street West, Hamilton, ON, L8P 4Y5
[email protected]

Please note: Written submissions will be part of the public record.

Why Development Charges Exist

Development Charges help ensure the cost of new infrastructure needed for growth is not passed on to existing local property taxpayers. Without DCs, those costs would lead to higher property taxes and user fees. Most Ontario municipalities use Development Charges.

How Development Charges are Determined

Under the Development Charges Act, 1997 City Council can pass a by-law to impose Development Charges. This requires that a DC Background Study be completed, including:

Forecasts of the type, amount, and location of development and population
A review of past capital service levels
A review of future capital projects to support the expected new development.

The Development Charges By-law also allows for annual DC fee adjustments. The Act and the By-law include exemptions for certain types of development.

Treasurer’s Statement

The City Treasurer prepares an annual statement regarding the use of development charges funds and sets out the balance in each of the development charges reserves

Learn More About

Development Charge Rates

Rates and Information

Deferral Program

Education DC

Development Charges Rates (Information Pamphlets)

Development Charges By-law & Background Study

Guide to Development Charge Information Pamphlets

Effective January, 1, 2020 the Province amended the Development Charges Act, 1997 and the timing of when development charges are calculated. Refer to this table for guidance regarding what DC pamphlet will apply for which type of DC.

Download 2025 Development Charges Interest Calculator Tool(File, 321.32 KB)

Situation	City DC, GO DC, Dun/Wat SAC	Education DC
Complete application for site plan or zoning amendment was made prior to January 1, 2020	DC Pamphlet in effect at permit issuance **	DC Pamphlet in effect at permit issuance
Complete application for site plan or zoning amendment was made on or after January 1, 2020 and building permit is issued within 2 years of site plan approval	DC Pamphlet in effect at the later application date plus interest using the tool above to permit issuance	DC Pamphlet in effect at permit issuance
Complete application for site plan or zoning amendment was made on or after January 1, 2020 but the associated building permit is issued more than 2 years after site plan approval	DC Pamphlet in effect at permit issuance **	DC Pamphlet in effect at permit issuance
The development is not subject to a site plan or zoning amendment application	DC Pamphlet in effect at permit issuance **	DC Pamphlet in effect at permit issuance

** The City offers a transition policy based on complete building permit application date for 6 months following a DC rate increase which may permit the pamphlet in effect at building permit application to be applied.

Rental Housing and Institutional Development Installments

Rental Housing and Institutional Developments will pay in 6 equal annual payments commencing at occupancy.

Complete Development Charge Instalment Declaration Form(PDF, 355.86 KB)

The City accepts industrial DC Deferral applications. Currently, the City is accepting a limited number of non-industrial DC Deferral applications. Unless otherwise stated, the DC Deferral program has available capacity and is continuing to accept applications. Allocations will be assigned on a first come, first serve basis until the program has reached capacity.

Eligible non-industrial developments

Non-residential
High density residential
Mixed-use

Not eligible to apply

Low and medium density residential developments
Developments located within the Downtown Hamilton Community Improvement Project Area (CIPA)

A minimum Development Charge of $50,000 is required in order to apply.

Complete Deferral Program Application Form(PDF, 119.48 KB)

Applications may be emailed to [email protected] with the corresponding $780 application fee delivered, in person, within 2 business days. Application fees will be returned for any applications that are submitted after the available funds have been allocated.

Section 257.54(1) of the Education Act enables a district school board to pass by-laws for the imposition of education development charges against land if there is residential development in its area of jurisdiction that would increase education land costs.

Both school boards in Hamilton have determined that the residential development of land to which the by-law applies increase education land costs.

Education Board Development Charges

Date modified

May 27, 2025