Making housing more affordable for families

Vaughan Council takes progressive steps to get shovels in the ground by reducing development charges 

Making life affordable for Vaughan residents – both now and in the future – is a priority for the City of Vaughan. That includes taking steps to get shovels in the ground to build new, attainable homes to support our growing population. 

As part of this commitment, Mayor Steven Del Duca and Members of Council today approved reductions to the City’s development charges, which have been among the highest in the Greater Toronto Area. 

This step, which comes following a Member’s Resolution from Mayor Del Duca to find solutions to this housing crisis, positions the City to address affordability challenges and to make life easier, particularly for young families.

Development charges are fees charged by a municipality to developers to help fund the initial capital costs required to support growth. From 2009 to 2021, the City’s development charge rates increased by 229 per cent, and, since 2018, rates have increased another 66 per cent. 

The Council-approved staff report calls for the following: 

• That staff revise the development charge rates on all residential development applications to the rates in effect on Sept. 21, 2018, until Nov. 19, 2029, through the use of section 27 agreements.
• That staff lower development charge rates on low-rise residential developments through the use of section 27 agreements.
• That staff initiate a new development charge background study and Development Charge By-law.
• That Council approve a new Development Charges Rate Reduction and Deferral for Residential Development Policy.
• That staff stop charging development charge interest on residential developments.

The City is committed to working with partners at all levels of government to secure investments for the services and infrastructure necessary to build more homes and complete communities. 

QUOTE

“Development charges have become an unfair tax burden on homebuyers. Too many of our residents, in particular young families in our community, have seen their dream of buying a home close to where they grew up, disappear completely as housing prices have spiraled out of control.  We have a housing affordability crisis and it’s time for us to get real about the solutions needed to solve it. Today’s decision by Vaughan Council to dramatically reduce our development charges for the foreseeable future is a strong step in the right direction. I urge other municipalities to follow our lead and do the right thing.”

• Mayor Steven Del Duca 

QUICK FACTS 

• Prior to today, the City’s published development charge rate for low-rise residential was$94,466. The new City development charge rate applicable to low-rise residential will now be $50,193.
• In September, Mayor Del Duca introduced a Member’s Resolution (PDF) requesting City staff to report back with options to amend Vaughan’s current Development Charges By-Law in order to help make housing more affordable and accessible for homebuyers. 
• Development charges are fees charged by a municipality to developers to help fund the initial capital costs required to support growth, such as new housing developments. This can include costs related to roads, water and sewer infrastructure and community centres, among others. 
• On Nov. 19, 2024, Vaughan Council approved reductions to the City’s development charges, which are among the highest in the Greater Toronto Area. 
• The City of Vaughan agreed to the provincial housing pledge that committed Vaughan to enable the building of 42,000 units of housing by 2032. 
• The City of Vaughan is scheduled to begin the next update of its Development Charges Background Study and Development Charges By-Law in 2027.

LEARN MORE 

• Mayor Del Duca’s Member’s Resolution: Making Housing More Affordable in Vaughan (PDF) – Sept. 17, 2024
• Staff report: Development Charges Reduction Options – Response to Member’s Resolution (PDF) – Nov. 12, 2024
• Staff communication: C33 - Development Charges Reduction Options – Response to Member’s Resolution (PDF) – Nov 19, 2024
• City of Vaughan’s Development Charges By-law (PDF)