“We’ve concluded that the dramatic increase of development charges across the GTA is excessive, unsustainable and counterproductive,” said BILD president Michael Moldenhauer, whose company builds homes in Mississauga.
BILD’s report, “Over The Top,” pulled together for the first time data collected from GTA municipalities. It found that since 2001 average development charges have increased by more than 6.5 times the rate of inflation.
In 10 municipalities, total development charges are adding more than $30,000 to the price tag of a new home. Brampton is the highest at $35,398 while Mississauga comes in at $28,762.
The report notes the root problem facing new homeowners is inadequate municipal funding. Faced with social service costs downloaded from the Province, municipalities are beginning to view these development charges as a revenue “tap” that is draining home buyers of their ability to pay.
“We recognize that GTA municipalities require revenues from development charges to offset infrastructure costs resulting from new growth,” said Moldenhauer. “But the present situation is simply unfair. Communities have been forced to increase development charges to unsustainable levels.”
BILD, which represents more than 1,500 companies engaged in residential land development, is calling on the Ontario government not to make the problem worse by re-opening legislation that will allow further increases.
It also wants pressure on municipal budgets to be relieved by the uploading of social services back to the Province, and for all levels of government to work in partnership to adequately and fairly fund municipal infrastructure so it can keep pace with population growth.
In Peel, the Region, the cities and GO Transit all levy their share of development charges.
jchin@mississauga.net
