Development charges (DCs) are fees levied on new development to fund growth-related capital infrastructure, based on the principle that new development should pay for the infrastructure it requires rather than burdening existing taxpayers. Charges typically cover roads, water and wastewater systems, stormwater management, parks, recreation facilities, libraries, fire stations, and transit in some jurisdictions. Municipal staff calculate DCs through background studies that project growth, identify required infrastructure, estimate costs, and allocate charges per unit. Charges vary dramatically across Canada—from a few thousand dollars in smaller communities to over $100,000 per unit in high-growth municipalities. Provincial legislation governs DC frameworks, specifying eligible costs, calculation methods, and exemptions. Development charges represent a major revenue source for growth financing but contribute to housing costs, creating ongoing policy tension.
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Development Charges