In Ontario, development charges and levies refer to fees that are imposed by municipal or regional governments on new developments, including pre-construction projects such as residential or commercial buildings. These charges are intended to offset the costs incurred by the local government to accommodate the increased demand for infrastructure and services resulting from the development.
Development charges typically cover the costs associated with essential infrastructure such as roads, water and wastewater systems, parks, and other community facilities. These charges are meant to ensure that the new development contributes its fair share to the overall infrastructure needs of the growing community.
Levies, on the other hand, are specific fees that can be charged by the municipal or regional government for particular services or facilities that are directly related to the development. These may include charges for services such as public transit, community centers, libraries, or other amenities that serve the residents in the new development area.
It’s important for developers and individuals interested in pre-construction properties to be aware of these charges and levies, as they can significantly impact the overall cost of the project and the subsequent property prices. Understanding these fees allows developers and potential buyers to make informed decisions and adequately budget for the additional costs associated with the development process.