Development Charges

Development Charge Request
Call 905-546-2424 ext. 4400 or
Email [email protected]

Consolidated Development Charges By-law
New Rates in effect December 1, 2024
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
- Development Charges Reserves Status Report as of December 31, 2023 (FCS24043)
- Development Charges Reserves Status Report as of December 31, 2022 (FCS23035)
- Development Charges Reserves Status Report as of December 31, 2021 (FCS22040)
- Development Charges Reserves Status Report as of December 31, 2020 (FCS21047)