TRENDING: TD Bank Places Burlington Waterfront Project Under Receivership

Development Charges (DCs)

Learn about development charges in Canadian real estate — what they fund, who pays, and why they’re key in urban growth.

Development Charges (DCs)

July 27, 2025


What are Development Charges?

Development charges (DCs) are fees imposed by municipalities on new developments to help fund infrastructure and services required due to growth.

Why Development Charges Matter in Real Estate

In Canadian real estate development, DCs ensure that growth-related costs are shared by new developments rather than existing taxpayers.



DCs fund:
  • Roads and transit
  • Water and sewer systems
  • Parks and recreation facilities
  • Libraries and emergency services



Understanding DCs helps developers budget accurately and assess project feasibility.

Example of Development Charges in Action

The developer factored in development charges when budgeting for the new 100-unit condo project.

Key Takeaways

  • Fees levied on new development
  • Fund infrastructure and community services
  • Applied at municipal level
  • Significant cost in project budgeting
  • Supports growth management

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Experts On Canadian Housing: What You Missed At SiteSummit 2026

Experts On Canadian Housing: What You Missed At SiteSummit 2026

Images: SitePartners

SiteSummit 2026 — presented by SiteNews and EllisDon — leaned into its "Summer School" theme, packing its Toronto program with sessions on everything from AI adoption to modular construction.

Among them, three sessions dug into housing from very different angles: a market update, a materials-focused deep dive on mass timber, and a policy panel on what it'll actually take to make things move. Between them, a market analyst, a real estate broker, a trio of architects and engineers, and a panel of housing executives laid out where the correction stands, where the industry is looking for new tools, and where the policy conversation is getting stuck.

Keep Reading Show less

KingSett Buys Insolvent TAS Labatt Village Project With $84.1M Credit Bid

KingSett Buys Insolvent TAS Labatt Village Project With $84.1M Credit Bid

The Labatt Village project by Toronto-based developer TAS is changing hands following a relatively quick receivership proceeding, according to filings in Ontario Superior Court.

At 7 Labatt Avenue and 77 River Street in Toronto, a 1.34-acre property located between Dundas Street East and Queen Street East near the Don River, TAS was planing to redevelop the two existing commercial buildings into a two-tower mixed-use community.

Keep Reading Show less

Beaches Beauty Sells Over Asking After 6 Days On The Market

Beaches Beauty Sells Over Asking After 6 Days On The Market

Zolo

We're smitten with this 3-bed beauty that was just snapped up in The Beaches.

At 138 Lee Avenue, the layout runs across 2½ storeys plus a finished basement — four usable floors in total.

Keep Reading Show less

What’s Open And Closed In Metro Vancouver On Canada Day 2026

What’s Open And Closed In Metro Vancouver On Canada Day 2026

We're here with what you need to know about Canada Day in Metro Vancouver for 2026.

To start, public transit will be operating on holiday schedules. According to TransLink, buses will run on a holiday/Sunday schedule, while SkyTrains and SeaBuses will all run on modified versions of the Sunday/holiday schedule. West Coast Express will not operate.

Keep Reading Show less

What’s Open And Closed In Toronto On Canada Day 2026

What’s Open And Closed In Toronto On Canada Day 2026
Shutterstock

Canada Day has officially come back around.

As a national statutory holiday, many stores, businesses, and services will be closed on Wednesday, July 1. To help you plan your festivities, here's what's open and closed in Toronto:

Keep Reading Show less

Toronto Slashing DCs By Up To 60% As Ontario Municipalities Sit On Billions In Reserves

Toronto Slashing DCs By Up To 60% As Ontario Municipalities Sit On Billions In Reserves
Shutterstock

Ontario was sitting on roughly $10.5 billion in development charge (DC) reserves by the end of 2024, according to a recent report from Desjardins that argues municipalities have become overly accustomed to the fees as a source of revenue.

More controversial still, DCs remain one of the most serious obstacles to new housing in a province where affordability is crumbling.

Keep Reading Show less

ELM And Fiera Break Ground At 270 Sheppard West

ELM And Fiera Break Ground At 270 Sheppard West

ELM Developments

ELM Developments and Fiera Real Estate acquired the assembly at 270 Sheppard Avenue West on January 29. They broke ground on June 17.

In a market where rental projects routinely spend years in rezoning, moving from purchase to shovels in under five months is the point — and at 270 Sheppard, they planned it that way.

Keep Reading Show less

OpenForm, Alabaster Planning 32-And 28-Storey Towers In Metrotown

OpenForm, Alabaster Planning 32-And 28-Storey Towers In Metrotown

The proposal for 6470 and 6508 Silver Avenue in Burnaby. (OpenForm Properties, Alabaster Homes, Arcadis)

Vancouver-based developers OpenForm Properties and Alabaster Homes are partnering on a two-tower project in the Metrotown neighbourhood of Burnaby, according to a rezoning application set to be considered by Council this week.

The subject site of the proposal is 6470 and 6508 Silver Avenue, which is located directly across the street from Maywood Park and half a block away from Metrotown Station.

Keep Reading Show less
Privacy Policy About Us Terms of Use Advertise with Us Jobs Contact Us RSS Feed
All rights reserved SiteMedia © 2026.