Development Charges | City of Hamilton

Development Charges Background Study
The City’s existing Development Charges By-law is set to expire on June 13, 2024. A NEW Development Charges Background Study and By-law are being prepared and will be considered at Council prior to date of expiration. Information about schedules, opportunities to provide input and how to get involved with the Public Meeting will be announced as the project progresses.

The City of Hamilton imposes development charges (DC) to recover growth-related costs associated with the capital infrastructure within Hamilton. Development Charges are one-time fees paid by developers at the time a building permit is issued to help pay for municipal services to new developments, such as roads, transit, water and sewer infrastructure, community centres and fire and police facilities.

Learn More About

Development Charge Rates

Overview

Rates and Information

Deferral Program

Education DC

Development Charges ease the financial burden on taxpayers to fund new services as a result of growth. Without development charges, the costs for additional infrastructure would be at the expense of existing property owners in the form of higher property taxes and user fees. Most municipalities in Ontario use development charges.

How Development Charges are Determined

The Development Charges Act, 1997 provides Council with the authority to pass a by-law to impose Development Charges. This Act requires that a Development Charges Background Study be completed. The Background study takes into account:

A forecast of the amount, type and location of development and population
The historical level of capital service levels
A review of future capital projects to provide for the expected development.

The Development Charges By-law provides for an annual adjustment, on January 1^st of each year, of Development Charges Rates. The Act and the By-law also provide 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 Rates (Information Pamphlets)

Development Charges Rates effective Nov 8, 2019 to July 5, 2020 (PDF, 927.27 KB)Development Charges Rates effective July 6, 2020 to July 5, 2021 (PDF, 936.49 KB)Development Charges Rates effective July 6, 2021 to July 5, 2022 (PDF, 940.44 KB)Development Charges Rates effective July 6, 2022 to November 27, 2022 (PDF, 946.46 KB)Development Charges Rates effective November 28, 2022 to July 5, 2023 (PDF, 947.25 KB)Development Charges Rates effective July 6, 2023 to June 12, 2024 (PDF, 947.21 KB)

Development Charges By-law & Background Study

Presentation to Development Charges Stakeholder Sub-Committee - April 2023 (PDF, 816.52 KB)Development Charges Update Study to DC By-law 19-142 (PDF, 1.68 MB)Development Charges Background Study - 2019 (PDF, 24.35 MB)By-law 19-142 - Consolidated (PDF, 14.31 MB)By-law 11-174 - Consolidated (PDF, 1.05 MB)

Development Charges & Bill 108

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.

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	DC Pamphlet in effect at the later application date plus interest using the tool below to 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.

Payment Schedule

Rental Housing and Institutional Developments will pay in 6 equal annual payments commencing at occupancy.
Non-profit housing developments will pay in 21 equal annual payments.

Complete Development Charge Instalment Declaration Form(PDF, 133.12 KB)

Download Development Charges Interest Calculator Tool(File, 280.6 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, 103.52 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

April 27, 2023