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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

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