Region taking steps to improve housing affordability

In a bid to address housing challenges across York Region communities, York Regional Council has approved several changes to development charges deferral policies.

Those changes include non-luxury rentals until their use changes, provided they operate as non-luxury rentals for at least 40 years and have at least four units. That policy is retroactive to April 3, 2025 and is available for developments achieving building permits up to December 31, 2029.

The changes also include ground-related development, deferring payment of hard services development charges (water, wastewater and roads) until the issuance of a first building permit issuance, interest-free, originally approved at and in effect since the Special Meeting of Council on April 3.

Also included in the changes: high-rise buildings until the earlier of 48 months or registration of condominium, with the first two years being interest free. That was also originally approved at the Special Meeting of Council on April 3 and has been in effect since. Changes to other existing deferral policies will incentivize development of large and small office buildings.

A first-time homebuyers’ development charges equivalent rebate up to and including $1 million before taxes and a declining scale development charges equivalent rebate up to $1.5 million before taxes is also included in the changes. That passes savings to homebuyers and will take effect pending receipt of new dedicated funding from provincial and federal governments to fully offset costs, York Region reports. That was also brought forward at the April 3 meeting.

Other policies include increasing flexibility for developers providing upfront financing for infrastructure; modernizing security requirements, to accept Pay on Demand Surety Bonds for Development Charge Deferral Agreements and Prepaid Development Charge Credit Agreements; supporting farming with a new deferral or exemption contingent on local municipal matching for a new residential dwelling unit for farm workers on agricultural lands; and revised redevelopment credits treatment to encourage prompt demolition of derelict buildings.

Development charges are a cost recovery tool municipalities use to help fund vital growth-related, housing enabling infrastructure, including water, wastewater, roads and transit. In York Region, development charges fund about two thirds of growth infrastructure within the 2025 Capital Plan.

Learn more about how York Region is working towards improving housing affordability at york.ca/DevelopmentChargeImpacts.