City of Ottawa
2014 Development Charges
Background Study
Affordable Housing
July 8, 2014
Purpose
To recover the capital costs associated with
residential and non-residential growth within the
municipality
 The capital costs are in addition to what costs
would normally be constructed as part of a
subdivision (i.e. internal roads, sewers,
watermains, roads, sidewalks, streetlights, etc.)
 Municipalities are empowered to impose these
charges via the Development Charges Act
(DCA)

1
Development Charges
Methodology
2
Development Charges
Methodology
1.
Identify amount, type and location of growth
 Affordable
Housing Services maximum 10-year
forecast period
 Charges imposed on residential development
types
Inside
Greenbelt
Urban
Outside
Greenbelt
Rural
City of
Ottawa
% Inside
Greenbelt
% Urban
Outside
Greenbelt
% Rural
3
2014
Dwelling Units
2024
2014
Population
2024
2031
246,011
270,024
121,324
32,995
Dwelling Unit Growth
2014-2024 2014-2031
Population Growth
2014-2024 2014-2031
2031
286,819
529,498
570,377
598,155
24,014
40,808
40,880
68,658
152,152
38,173
168,927
41,295
325,753
93,631
388,588
105,090
425,711
111,974
30,828
5,178
47,603
8,300
62,835
11,460
99,958
18,343
400,330
460,349
497,041
948,881
1,064,056
1,135,840
60,019
96,711
115,175
186,959
61.5%
58.7%
57.7%
55.8%
53.6%
52.7%
40.0%
42.2%
35.5%
36.7%
30.3%
8.2%
33.1%
8.3%
34.0%
8.3%
34.3%
9.9%
36.5%
9.9%
37.5%
9.9%
51.4%
8.6%
49.2%
8.6%
54.6%
9.9%
53.5%
9.8%
Development Charges
Methodology
2.
Identify Servicing needs to accommodate
growth
 Service
specific assessment
 Distinguish between DC service and local service
3.
Identify servicing needs to accommodate
growth; a DC may not provide for:





4
Parkland acquisition
Town Halls, Tourism and Cultural Facilities
Solid Waste Service
Hospitals
Restrictions re rolling stock and computer
hardware
Development Charges
Methodology
4.
DC capital needs assessment requires
 Consideration
of 10-year average historic level of
service
 Council intention that needs will be met
 Long-term capital and operating cost determination
5.
5
Identify capital costs to provide services to
meet the needs “incurred or proposed to be
incurred by a municipality or a local board
directly or by others on behalf of, and as
authorized by, a municipality or local board.”
Development Charges
Methodology
6.
Capital costs may include:







6
Land acquisition (excluding parkland)
Capital improvements, acquisitions, leases and
construction projects
Rolling stock with 7 years + useful life
Furniture and equipment for eligible services
Library circulation materials
Interest costs
Studies in connection to the above (including the
preparation of a DC background study)
Development Charges
Methodology
7.
Capital cost assessment must have regard for:





7
Amounts in excess of 10 year historic service
calculation
Uncommitted excess capacity
Grants, subsidies and other contributions
Benefit to existing development (2009 estimate
based on affordable housing units to be occupied
by existing residents, based on waiting lists and
priority for assigning units; 70%)
Statutory 10% deduction (applicable for
Affordable Housing Services)
Development Charges
Methodology
8.
Net costs then allocated by type of
development (i.e. 100% residential)
9.
Net costs divided by growth (gross population)
to provide the DC charge
10.
Spatial applicability of the charge
 Uniform
City-wide vs. area-specific (i.e. Inside
Greenbelt, Outside Greenbelt and Rural)
8
Development Charges
Methodology
11.
DC bylaw policy considerations:






9
Collection timing (building permit issuance)
Statutory and non-statutory DC exemptions
Credit policies (s.38 credits and redevelopment
credits)
Fee implementation (uniform by use,
differentiated by use, exempt developments)
Transitional policies (phase-in policies)
Indexing policies
City's 2009 DC By-Law
(Affordable Housing)
In 2009, the City’s 10-year Affordable Housing
Program identified $3.5 million annually for an
additional 100 units per year ($31.5 million total)
 $8.5 million (27%) identified for recovery from
residential development over the forecast period
 DC for Affordable Housing Services imposed on
a uniform City-wide basis
 DC per single detached dwelling on August 31,
2013 was $189/unit

10
Affordable Housing Survey

Toronto




11
Program identifies an addition 200 affordable
ownership units and 1,000 subsidized units over the
forecast period at a total cost of $266.8 million.
Service level cap over 10 years of $197.7 million.
$84.0 million (31% of $266.8 million) included in the
calculation of the charge.
$711/sdu current DC.
Affordable Housing Survey

York Region




12
Program identifies an addition 1,000 affordable
housing units over the forecast period at a total cost
of $232.8 million.
Service level cap over 10 years of $443.4 million.
$26.7 million (11% of $232.8 million) included in the
calculation of the charge.
$347/sdu current DC.
Affordable Housing Survey

Peel Region




13
Program identifies a total cost of $180.1 million.
Service level cap over 10 years of $272.3 million.
$55.5 million (31% of $180.1 million) included in the
calculation of the charge.
$716/sdu current DC.
Affordable/Social Housing
Survey

Halton Region




14
Program identifies an addition 60-100 units annually,
with a mix of construction, ownership and operation.
Service level cap for 646 units over 10 years.
$17.4 million (40% of $44.0 million) included in the
calculation of the charge.
$392/sdu calculated DC.
Affordable/Social Housing
Survey

Hamilton




15
Program identifies an addition 3,000 units over the
forecast period at a total cost of $405.0 million.
Service level cap for 494 units over 10 years or $66.7
million.
$13.9 million (3% of $405.0 million) included in the
calculation of the charge.
$427/sdu current DC