'This is urgent': York Region warns taxpayers will bear brunt of Ontario's Bill 23

Almost $35 million has already been lost in developer fees due to the province's More Homes Built Faster Act

Yorkregion.com
Sept. 19, 2023
Kim Zarzour

In the first few months since the province implemented changes to development charges, York Region has already lost $35 million in revenue -- with much more to come -- and regional councillors warn that the shortfall is going to hit taxpayers hard.

Among the sweeping changes introduced with its Bill 23 housing law, the Ford government froze, reduced and exempted fees developers pay for growth-related related infrastructure such as roads, transit and sewers.

The development industry argued that the charges were a barrier to building new homes and to making housing more affordable.

In York Region, a staff report in February predicted that the changes could reduce the region’s revenue up to $1.6 billion over the next 10 years.

A new report presented to council on Sept. 14 showed that the losses are already being felt.

Development activity in York Region continues to remain strong, the report said, but associated development charges declined with the implementation of Bill 23.

As of the end of July, the region saw a $34.9-million reduction due to the phasing in of development charge rates, said Laura Mirabella, commissioner, finance and regional treasurer.

“At that rate, it doesn’t take long to realize how quickly we’re going to be in desperate financial straits,” said Richmond Hill Mayor Dave West. “This is urgent.”

“This is a problem,” agreed Vaughan Regional Councillor Mario Racco.

“We won’t be able to build the infrastructure we need, we can’t assist people who need social assistance, can’t build the parks and roads … We want to make sure people find this out today, not tomorrow.”

Council members called on the region to spread the word and counter “misinformation” blaming municipalities and mayors for the housing affordability crisis.

York Region should “put the facts on the table,” issue press releases and engage the public with data showing it’s not the municipalities’ fault, said Newmarket Mayor John Taylor.

“I don't think we've spoken loudly enough or clearly enough," he said. "We need to be a little more aggressive in making our case and also defending (against) the growing narrative that somehow municipalities or mayors are responsible for the housing affordability crisis across this country.”

Newmarket is one of several Ontario municipalities to have their finances probed by a third-party auditor.

The province has offered $1.2 billion in incentives over three years to municipalities who meet their housing targets.

But Taylor said that’s unrealistic, given that the building industry is predicted to face stagnation for several years due to market conditions.

“And even if it were realizable, it represents much less than what has truly been lost,” he added.

Georgina Regional Councillor Naomi Davison agreed.

“If we’re losing $10 million a month, that is going to impact the taxpayer and that taxpayer has the right to understand. If the provincial government isn’t going to do that, then we have to.

“As much as our staff are trying to find a fiscally responsible way to deal with these changes and turning themselves inside out to make that happen, the taxpayer is where this is going to land.”