Niagara Construction News staff writer
The City of Hamilton council is cutting development charges on residential and non-residential construction projects by 20 per cent, in an effort to boost housing starts.
“We are taking strong actions to support our community and respond to the housing crisis,” said City Manager Marnie Cluckie. “This affects all of us – goods, services, businesses, affordability, jobs, and resident health and wellbeing. It is essential we make these changes to drive economic stability and help our local construction industry get projects underway and shovels in the ground.”
Beginning Sept. 1, a temporary 20 percent exemption on DCs will apply to all new residential and non-residential developments across Hamilton. The exemption will remain in effect for two years — until Aug. 31, 2027. The exemption is not expected to impact the property tax levy in 2025, as its cost should be fully absorbed within the Council-approved budget.
Mayor Andrea Horwath called this “one more step in a coordinated strategy to increase housing supply for Hamilton residents.” She added, “Hamiltonians are feeling the pressure of the housing crisis — we need more homes people can afford, and we need them built faster.
“By helping to unlock stalled projects, we’re responding to what we’ve heard from builders, nonprofit partners, and residents. We’re doing so in a way that supports our local construction industry, maintains transparency, and protects taxpayers.”
However, Councillor Brad Clark asked why the city would cut DCs without a funding commitment for infrastructure from the federal or provincial governments.
“No, we do not have any provincial or federal infrastructure commitment that would further alleviate development charges, nor do we have any other program funding that would further reduce or mitigate the costs associated with development charge discounts,” City General Manager Mike Zegarac confirmed at last week’s council meeting.
The DC by-law amendments also include a streamlined exemption process for non-profit housing developments. This change will make it easier for qualified organizations to access Development Charge relief without facing costly legal or administrative requirements.
In response to feedback from the Mayor’s Roundtable on Trade and Tariffs, the city has extended the temporary DC relief to the manufacturing sector. This acknowledges the growing pressures facing manufacturers during this period of economic uncertainty.
To ensure transparency and monitor progress, finance staff will provide annual reports on the impact of the DC exemptions.
As part of a broader approach to supporting the housing crisis, the City’s Housing Services and Housing Secretariat will assess the feasibility of reinstating a Down Payment Assistance Program for moderate-income households. This review will explore delivery models, funding sources, and alignment with the City’s affordable housing priorities.
Councillor Clark also questioned if lowering DCs would make housing more affordable.
“There is no guarantee that housing prices are going to go down if we lower the development charges,” he said.
Zegarac agreed.
“That’s correct,” he said. “In our engagement with the residential and non-residential (sectors) . . . there was no indication that a further DC discount would affect the affordability of housing.”
While a cut is expected to improve housing supply and support the construction labour force, “we have no expectations that it will impact on affordability, based on our consultations.”
Councillor Kroetsch voted against the discount because there were no stings attached to for-profit developers that would benefit from the discount.
“For me, I think it’s extremely important that if we are giving incentives to people and they are taking money from the city, the should be required to meet some level, any level of financial transparency and what I continue to hear is that’s not required in this situation and so for me it’s a no.”
Finally, Hamilton will continue to advocate for infrastructure funding from higher levels of government to help offset the costs of growth and ensure that local taxpayers are not left to absorb the financial impacts of new development.
