Tackling Housing Affordability through Fee Relief
We’re in a housing affordability crisis, and every day the dream of home ownership for our kids and grandkids slips further out of reach.
It’s time for all levels of government to act. We’re ready to do our part.
That’s why Burlington City Council is considering providing new home buyers relief from municipal fees through a temporary two-year exemption of residential development charges. This is not a subsidy to developers—they do not receive any funds from the city. These are charges owed to the city and ultimately paid by home buyers in the cost of a new home. The exemption means the purchaser doesn’t pay these fees upon closing, and the city covers them through contributions to reserves.
City staff recommended a plan that would eliminate development fees on affordable rentals, and the majority of council wanted to consider an expanded program that would benefit more residents and get more homes built. Based on new information staff provided at my request, I supported moving discussion of an expanded program to a Special Council meeting March 2.
Taking extra time in light of new information is helpful, and at the same time, there is urgency to act. We’ve been discussing fee relief since last September, and in that time, the crisis has only gotten worse. Since announcing this potential measure, I’ve heard from residents whose stories bring this crisis into focus. One mother shared that her four adult sons are sharing an apartment; until now, her only hope for them having their own home felt like winning the lottery. Now she feels like someone is finally taking the crisis seriously and prepared to act.
We’ve already seen the impact of this crisis. Ground-oriented housing projects have fallen by 87%, and multi-residential projects by more than 90%. A project on Appleby Line was recently cancelled—one that would have generated approximately $1 million annually in property tax revenue to help fund services you depend on.
When projects are stalled or cancelled, we not only lose out on development charges—we also miss out on parkland dedication, community benefits charges, building permit and application fees—as well as additional tax revenue that helps reduce property tax increases. Doing nothing also has a cost—and we still lose out on development fees if nothing gets built.
Staff have suggested funding for a temporary development charge grant program could come from annual surplus and reserves, that would not rely on tax increases. Their most recent estimate is a potential cost of up to $4.6 million in 2026. Council could cap the value of the program to reduce costs, and ensure the exemption only applies to homes below a specific value to keep the focus on affordability.
We also know we can’t do this alone. Housing is a shared responsibility. The Ontario government has stated it will make municipalities whole for development charge fee relief. The federal government has pledged to cover up to 50% of municipal development charge relief. We are ready to do our part, and now we are asking both levels of government to keep their word and do theirs.
We want to hear from you. What would make housing more affordable for you? What type of a fee relief program and conditions would you support? Please join the meeting March 2 or get in touch at mayor@burlington.ca.
