Development Charges

Municipalities in Ontario use Development Charges (DCs) to recover growth related capital costs associated with residential and non-residential growth. In accordance with the Development Charges Act, DCs are collected at the building permit stage to help the City pay for municipal services needed to support the new development. These services include, water, wastewater, emergency services, roads and more.

Please refer to heading “Rates” below for the rates in effect from July 1, 2020 to June 30, 2021.

View the Development Charges By-law.

View the Development Charges Rates and Summary Pamphlet - July 1, 2020 to June 30, 2021

View the Notice of Development Charges By-law Passage.

Development Charge Exemptions

Some properties are exempt or partially exempt from Development Charges which are calculated as part of the cost to be paid before obtaining a municipal building permit.

Contact

For more information regarding Development Charges, please call 705-674-4455, ext. 2529.

Annual Treasurer Reports

The Development Charges Act, section 43(1) states that “The treasurer of a municipality shall each year on or before such date as the council  of the municipality may direct, give the council a financial statement relating to development charge by-laws and reserve funds established under section 33.” In addition, Paragraphs 12 and 13 of Ontario Regulation 82/98 indicate the information to be included in the report.

The following are annual treasurer reports presented to Council since the passage of Development Charges By-law 2009-200F.

Background

Further information can be obtained from the Office of the Chief Financial Officer/Treasurer at 705-674-4455 ext 4258.

Challenges

Under the Development Charges Act, 1997, a person required to pay a development charge, or that person’s agent, is entitled to submit a complaint to challenge a development charge collected under By-law 2019-100 for the following reasons:

  • the amount of the development charge was incorrectly determined;
  • whether a credit is available to be used against the development charge or the amount of the credit or the service with respect to which the credit was given, was incorrectly determined; or
  • there was an error in the application of the development charge by-law.

The complaint must be in writing, must state the complainant’s name, the address where notice can be given to the complainant and the reasons for the complaint as set out above.

What is the deadline to submit a complaint?

The person required to pay a development charge or that person’s agent, must submit a complaint to the Hearing Committee in writing within 90 days after the day the development charge, or any part of it, is payable according to the Development Charges Act. The ability for a person to submit a complaint is forfeited after the 90-day time period.

If the complaint does not meet the statutory requirements, the City Clerk will notify the complainant in writing as to the nature of the deficiency and that no hearing can be scheduled as a result.

The City Clerk will provide the complainant with at least 14 days notice of a meeting of the Hearing Committee. The complainant will have an opportunity to make representation at the Hearing Committee.

After hearing the evidence and submissions of the complainant, the Hearing Committee may dismiss the complaint or rectify any incorrect determination of amount or error that was the subject of the complaint.

Request for Review

Prior to filing a complaint, a person can request a review in writing to the Chief Building Official to review the calculation of the development charge for the reasons identified above. This request does not represent a complaint to the Hearing Committee as the person can file a complaint after the results of the request for review. However, the complaint must be submitted in writing to the City Clerk within 90 days after the day the development charges, or any part of it is payable.

Complaints can be submitted to:
Office of the City Clerk,
City of Greater Sudbury,
P. O. Box 5000, Station A,
Sudbury, ON P3A 5P3

Or hand-delivered to the Office of the City Clerk, City of Greater Sudbury, Second Floor, Tom Davies Square, 200 Brady St., Sudbury, during regular business hours of 8:30 a.m. to 4:30 p.m., Monday to Friday.

Deferral Program

In accordance with a decision of City Council, applicants for building permits for long-term care homes and hospices may now apply to defer payment of development charges (DCs) otherwise payable at the building permit stage until the date which is earliest of:

  1. Occupancy plus six months
  2. Two years from the building permit application; or
  3. The date of transfer of the property

By-Law 2019-88  “Deferral of Payment of Development Charges for Long Term Care Homes and Hospices” provides additional information.  Application forms will be available upon request.

 

Exemptions

Development Charges By-law 2019-100 applies to all lands within the City of Greater Sudbury subject to certain exceptions:

  • a development owned and used by a Board of Education or a municipality,
  • an enlargement of an existing dwelling unit,
  • an enlargement of gross floor area by 50 percent or less in an existing industrial building,
  • a development designated for temporary use (less than eight months),
  • a development in a designated exempt area identified in Schedules E of By-Law 2019-100 and any future BIAs approved by City Council,
  • any college created pursuant to the Ontario Colleges of Applied Arts & Technology Act,
  • a development owned and used for university academic or research purposes,
  • 50 percent exemption for development owned by university and used for purposes other than academic or research purposes,
  • development within Designated Exempt Areas as per Schedule E of by-law 2019-100
  • affordable housing projects which meet criteria in By-law 2019-100,
  • garden suites when removed within 10 years,
  • a secondary dwelling unit as defined in the Zoning By-law,
  • a 50% reduction in DCs for Multi-Unit Residential Building constructed within the Nodes and Corridors as outlined in By-law 2019-100,
  • any hospices or long term care homes that are exempt from property taxation as outlined in By-law 2019-100,
  • additional intensification of existing housing as outlined in By-law 2019-100

The following situations may be eligible for partial credits on development charges:

  • When a building or structure is demolished to make way for a property redevelopment, previously paid development charges will be credited against the amount charged for the redevelopment, provided that redevelopment occurs within five years of demolition.
  • Property owners providing eligible services may receive a credit in lieu of direct payment of development charges.

Please see By-law 2019-100 for a complete list of exemptions to development charges.

Instalment Payments

In accordance with changes to the Development Charges Act, 1997, some developments are eligible for development charges to be paid in equal instalments.  

The owner/developer would be required to sign a Development Charges Instalment Payment Plan Agreement for agreement of DC’s owing and required instalment payment plan.

Eligible developments and instalment payment plan:

a) Institutional development (6 equal instalments over 5 years)

-    Long term care homes under Long Term Care Homes Act 2007
-    Retirement homes under Retirement Homes Act 2010
-    Post-secondary institutions
-    Royal Canadian Legion memorial home, clubhouse or athletic groups
-    Hospices to provide end of life care

b) Rental (6 equal instalments over 5 years)

-    Buildings with four or more dwelling units and intended for use as rented residential premises.

c) Non-profit housing development (21 payments over 20 years)

-    Buildings intended for use as residential premises by
o    A non-share capital corporation under Corporations Act or Canada Not-for Profit Corporations Act and in good standing under governing Act with primary object is to provide housing
o    Non-profit housing co-op under Co-Operative Corporations Act and in good standing under the Act.

Equal instalments would start at the earliest of:
 - Date of occupancy or approval of occupancy under the building permit
 - Date of building is first occupied 
 - and then subsequent payments on annual anniversaries of that date.

The onus is on the owner/developer to notify the City of occupancy.  If notification is not provided to the City within 5 days, it may result in loss of instalment payment plan and result in payment of DC’s in full immediately.

Municipal Services

Development charges are collected to fund growth portion of costs for the following municipal services:

General Services

  • general government
  • libraries
  • fire services
  • police services
  • public safety
  • parks and recreation
  • ambulance services
  • emergency preparedness
  • transit services

Engineering Services

  • roads
  • water
  • wastewater
  • drains and stormwater

Payment

The development charge is payable on the date the building permit or other approval is issued and shall be based on the development charge schedule in force on that date.

By agreement, the City of Greater Sudbury may accept the provision of service in lieu of cash payment.

In the case of mixed-use developments, the development charge allocation shall be based on the proportion of space expressed in gross floor area.

Rates

Development charges will change on July 1, 2019 and most are lower than existing rates. Council approved 50 per cent lower non-residential rates than those calculated by the background study to encourage development in the community.

Starting on July 1, 2020, these rates will be adjusted annually in accordance with the most recent 12-month change reflected in the Statistics Canada Quarterly, Building Construction Price Indexes, non-residential (Ottawa-Gatineau) in accordance with Section 23 of the by-law.

City Council has established a new rate for development charges for a small residential unit (a Single Detached Dwelling or a Semi-Detached Dwelling with a Gross Floor Area of less than 1,000 square feet) at the same rate for Multiples.

Development Charges from July 1, 2020 to June 30, 2021

Development Charges from July 1, 2019 to June 30, 2020

Development Charges from July 1, 2018 to June 30, 2019

Development Charges from July 1, 2017 to June 30, 2018

Development Charges from July 1, 2016 to June 30, 2017

Development Charges from July 1, 2015 to June 30, 2016

Development Charges from July 10, 2014 to June 30, 2015