The mayor of Chatham-Kent says the municipality is working on a solution after renewed calls from the Chatham-Kent Home Builders’ Association (CKHBA) to reduce government-imposed fees on new homes.
The CKHBA also said it needs help to boost the supply of homes locally, having built only 47 new homes this year.
CKHBA Executive Officer Dan VanMoorsel told CK News Today they are not against development charges, but an additional $17,316 fee on a new home is too much when the region, the province, and the country is experiencing a housing supply crisis.
"People had deals signed, there's people [builders] who lost multiple deals because they couldn't absorb $17,000 and the home owners couldn't absorb $17,000," said VanMoorsel.
Mayor Darrin Canniff told CK Mornings with Chris, Allanah, and Matt the development charges issue is tough, but necessary, adding development charges are imposed so existing taxpayers don't have to pay for future growth and the amenities that come with it, such as new fire halls. The mayor said the last thing he wants to do is price home builders out of the new housing market.
The development charge increase was approved by council in August 2022 on top of the already existing $9,600 fee for every new single family home in our area.
Vanmoorsel said the municipality doesn't fully understand the negative impact that the charges will have on new home buyers and housing attainability in Chatham-Kent.
VanMoorsel also accuses the municipality of approving the fee recommended by staff with little discussion by councillors and without a formal consultation with local stakeholders including the CKHBA.
"We were never allowed a voice with the decision makers. So, it was always administration presenting and that was a big bone of contention with us and we were unable to find a happy medium," VanMoorsel said.
He said the CKHBA has been working closely with municipal staff to minimize the negative impact on housing affordability that such a fee increase would have for residents. VanMoorsel noted the local home builders association shared a proposal in December 2022 that balanced the needs of the municipality with that of new home buyers, but feel they have not been heard.
The CKHBA is urging Council and staff to meet with the stakeholders and the CKHBA to discuss a more balanced development charge model that will provide more certainty and predictability for future residents of Chatham-Kent.
The development charges issue is before the Ontario Land Tribunal and the hearings can cost upwards of $100,000, the CKHBA said.
"We still should be talking back and forth trying to find a proposal even if we're going to the Land Tribunal or have paperwork to go to the Land Tribunal because we're not going to see a hearing date until sometime in 2025, which is going to be very, very difficult for us to continue to build during this time," he said.
Council discussed development charge appeals in a Closed Session Meeting of Council on February 6, 2023. The closed door meeting was to relay legal advice that is subject to solicitor-client privilege and a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on by the municipality regarding development charge appeals.
The municipality said it can't say much because the CKHBA and other developers have started a legal proceeding against the development charges bylaw.
"Chatham-Kent has instituted a number of supports for the construction of more housing units in our community, including a Community Improvement Plan that has resulted in several multi-residential projects being constructed over the last few years," said the municipality in a news release issued Wednesday afternoon. "While housing is absolutely needed in the Province, all levels of government need to consider and balance who pays the costs of that growth. Ensuring that funding is available for growth-related infrastructure through Development Charges, and ensuring the necessary infrastructure can get built, directly supports housing in our community."
The municipality noted that of the 50 municipalities that have recently been assigned specific housing targets by the province, 48 of them have development charge bylaws in place, including Chatham-Kent, adding that many have charges that are significantly higher than those in Chatham-Kent.
The municipality also said two public meetings were held before the new development charges bylaw was passed, meeting the strict public consultation obligations that all municipalities must follow before such a bylaw can be passed.