You may have heard the term "development charge" (DC) thrown around during housing debates in Ontario — but what exactly does it mean, and why does it matter for housing prices?
Put simply, a development charge is a fee that municipalities charge developers when they build new homes or apartments. This fee helps cover the cost of infrastructure — things like roads, water treatment plants, or new libraries — that connect new developments to the broader community.
For example, if a developer builds a new subdivision, the sidewalks and streetlights inside the subdivision are already paid for by the developer. But connecting that area to wider city services — like sewer systems, widened roads, or a new water treatment plant — costs money. That’s where development charges come in.