A provincial push to boost affordable housing by waiving development charges may have little effect in Halton, where few homes and rental units meet the eligibility criteria.
For a property to qualify, its price must not exceed the strict thresholds — $524,600 in Milton, $564,100 in Oakville, $535,400 in Halton Hills and $474,300 in Burlington. But with market prices far exceeding these limits, officials suggest most ownership units won’t be eligible.
“There are very few units, condo units, studio-type condo units that would meet that threshold,” said Cyndy Winslow, Halton’s finance commissioner and regional treasurer, during a recent regional council meeting.
The price thresholds were established in a provincial bulletin released in June 2024, which set out affordability criteria for development charge exemptions. The bulletin, which applies until June 2025, will be updated annually with new thresholds. Under the current guidelines, rental eligibility is based on market prices, while ownership thresholds are determined by income levels.
For rentals, affordability is defined by a range of prices depending on unit size, with studio apartments starting at around $1,200 per month and three-bedroom units capped at about $2,100. Oakville has the highest rental rates among Halton municipalities.
Any housing units that qualify for the exemption must remain affordable for at least 25 years. If ownership changes during the period, the unit must still meet affordability criteria to maintain its exemption status.
While the financial impact of the development charge exemptions on Halton’s budget remains uncertain, Winslow explained an earlier “very high-level” analysis suggested the policy could cost the region over $1 billion in lost development charges over a decade.
“It's really dependent on the development industry and what comes forward as affordable residential units,” the commissioner said.
Oakville Councillor Allan Elgar questioned whether any developers would be interested at all, noting, “I don’t think many of them are working for welfare.”
Winslow acknowledged that some developers have inquired about the exemption, but mainly for rental properties rather than ownership units. “I stay in touch regularly with area treasurers, where these developers first reach out at the local level,” she said.