Committee approves decrease to development charges

The Planning and Housing Committee today approved amending the Development Charges (DC) By-law and updating the 2026 Development Charges Background Study. These changes will ensure the City collects the appropriate charges to fund the infrastructure projects outlined in the updated Transportation Master Plan.

Council approved the Transportation Master Plan update in 2025, which included a revised schedule of transportation infrastructure projects needed to support growth in Ottawa. The changes approved today reflect that updated schedule as well as a new method of calculating what portion of transportation projects supports new growth and what portion benefits existing residents. 

As a result, development charge rates for residential development would decrease by an average of one per cent citywide. That includes an average decrease of one per cent for residential development inside the Greenbelt and two per cent outside the Greenbelt. In the rural area, residential development charge rates would remain relatively stable, increasing by an average of only 0.1 per cent. The rate for non-residential development would decrease by an average of three per cent citywide.

Development charges are one-time fees that municipalities charge on new residential and non-residential developments. They are used to fund infrastructure essential for the growth of a city, such as water and wastewater systems, stormwater management, public transit, roads, parks, recreation facilities, libraries and paramedic services. 

While development charges help ensure the costs of new growth are paid by those who benefit, they also represent a cost pressure that is ultimately borne by property buyers and renters. To balance the need for growth-related infrastructure against the need to ensure affordability and market viability, Ottawa maintains moderate development charge rates compared to many peer municipalities. 

City Council will consider the recommendations from today’s meeting on Wednesday, March 11.