Development charges are one-time fees collected from developers by municipalities at the time a building permit is issued.
The fees collected help pay for a share of growth-related capital infrastructure needs, such as transportation services, other services related to a highway including facilities, vehicles and equipment, fire protection services, by-law enforcement services, parks and recreation, library services, growth-related studies, and stormwater management.
The City collects development charges on behalf of the City, the Region of Durham and Durham area school boards.
Bill 23 (More Homes, Built Faster Act, Nov 2022) introduced phasing of DC fees for the first 5 years of a DC by-law. Bill 185 (Cutting Red Tape to Build More Homes Act) removes the mandatory phase-in of DC fees. As of June 6, 2024, the City will now be able to charge it’s maximum DC fees and this is reflected in the DC pamphlets posted below.
The final Report to Council on the 2025 Development Charges Background Study and By-law were passed at the June 23, 2025 Council Meeting.
2025 Development Charges Background Study
2022 Development Charges Background Study
Development Charges Interest Policy
Please refer to Report to Council FIN 09-20 for information pertaining to the changes to the DCA, and the related DC Interest Policy.
Bill 23 established that the maximum interest rate is to be prime plus 1% (section 26.3 of DCA). These rates are reflected in the table below, and FIN 09-20 will be revised to include the maximum legislated interest rates.
Section 26.2 of the DCA prescribes that the total amount of a development charge (DC) is determined based on the day of application for an approval of a site plan development or the day an application for a zoning amendment to a By-law. As a result, the municipality may charge interest on the DC from the date of application to the date the DC is payable.
The interest rate to apply is as follows:
Application Date and Interest Rate
January 1 - June 30, 2020 3.75%
July 1 - December 31, 2020 2.25%
January 1 - June 30, 2021 2.25%
July 1 - December 31, 2021 2.25%
January 1 - June 30, 2022 2.25%
July 1 - December 31, 2022 2.00%
January 1 - June 30, 2023 4.25%
July 1 - December 31, 2023 5.50%
January 1 - June 30, 2024 6.0%
July 1 - December 31, 2024 6.0%
Exception to Interest Calculation
There will be no interest calculation in the following situations:
Two-year time lapsed from the application approval date to building permit issuance date, on which the DC rates in effect are the rates at the time the building permit is issued;
or
In the absence of site plan or zoning by-law application, DC rates in effect are the rates at the time the building permit is issued.
For additional information, please view the June 2024 Council Report re Development Charges Reserve Fund - 2023 Statement of the Treasurer for the Year Ended December 31, 2023.
Community benefit charges is the responsibility of City Development staff. All queries should be directed to Paul Wirch in City Development.
2025 Community Benefits Charge Strategy
In 2020, changes to the Planning Act, replaced the former density and height bonusing provisions with a new financial tool, called a Community Benefits Charge (CBC). Any municipality in Ontario can create and collect a CBC from new buildings that are a minimum of five storeys high and have 10 or more residential units. The rate cannot exceed 4 per cent of the property’s land value on the day before a building permit is issued.
The following developments are exempt from CBCs:
A CBC is a financial contribution that is paid when land is developed to contribute to capital costs, related to growth, that are not already recovered from development charges and parkland provisions. CBCs may be collected to support land for parks and other public recreational purposes, arts and culture, and more.
A community benefits charge strategy was prepared to document the increase in demand for additional facilities, services, and document the projects that would be funded by these charges.
The current Community Benefits Charges By-law 8192/25 came into effect on July 1, 2025.
Disputes about whether a charge exceeds the maximum allowable amount can be resolved through the land value appraisal process.
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