New homeowners pay the developers, for sure.
The last line by Young got me thinking. Maybe taxes were kept low by the developers, but who pays the developers?
And most local government defend development cost charges by saying "growth must pay for growth" but it's also unclear if those development charges accurately line up with new costs, or if it's like a 20-years worth of property taxes grabbed upfront and the homeowner still has to pay annual taxes after that.
Vancouver charges some of the highest development fees among major cities: Study
A CMHC report found that the amount and number of fees can have a big influence on the cost and timeline to deliver new housing.
The agency’s latest report, to be published on its website Tuesday, found that total fees amounted to $140 per square foot on the city’s lowrise and highrise condo developments, mostly due to density-related community amenity fees, accounting for about 20 per cent of construction costs.
Toronto City Council Votes in Favour of Raising Development Charges Nearly 50%
PUBLISHED: 11:09 AM JUL 20, 2022
Toronto City Council voted on Tuesday evening to hike development charges, adding more than $40,000 in fees to some development application processes.
Charges for residential buildings were hiked 46%, while the charge for non-residential buildings was bumped up 40%. Developers looking to build a detached or semi-detached home will face a $137,040 charge, up $43,062 from the current development charge of $93,978.
Edited by Victoria Watcher, 31 March 2023 - 07:40 AM.