Development Charges By-law

1.1 Unless otherwise stated: 

(1) a reference to any statute or regulation refers to a statue or regulation of Ontario as it may be amended or replaced from time to time;

(2) a reference to a by-law refers to a by-law of the Township as it may be amended or replaced from time to time; and 

(3) a reference to a section, subsection, paragraph, clause, subclause or schedule is a reference to this By-law’s section, subsection, paragraph, clause, subclause or schedule. 

1.2    The headings in this By-law are for convenience only and do not form part of this By-law.

1.3    If any part of this By-law is determined to be invalid by a court of competent jurisdiction, the invalid part is severed, and the remainder continues to be valid.

1.4    In this By-law:

“Act” means the Development Charges Act, 1997;

“Accessory Use” means where used to describe a use, building, or structure that the use, building or structure is naturally and normally incidental, subordinate in purpose of floor area or both, and exclusively devoted to a principal use, building or structure;

“Ancillary Residential Use” means a residential dwelling that would be ancillary to a single-detached dwelling, semi-detached dwelling, or row dwelling;

“Apartment” means any residential unit within a building containing three or more dwelling units where access to each residential unit is obtained through a common entrance or entrances from the street level and the residential units are connected by an interior corridor. Despite the foregoing, an apartment includes stacked townhouse dwellings;

“Bedroom” means a habitable room larger than seven square metres, including a den, study or other similar area, but does not include a bathroom, living room, dining room or kitchen;

“Board of Education” means a board defined in Section 1(1) of the Education Act, R.S.O. 1990, c. E.2;

“Bona Fide Farming Operation” means the proposed development that will qualify as a farm business operating with a valid Farm Business Registration Number issued by the Ontario Ministry of Agriculture, Food and Rural Affairs and be assessed in the Farmland Realty Tax Class by the Ontario Property Assessment Corporation; 

“Building Code Act” means the Building Code Act, 1992, S.O. 1992, c. 23;

“Capital Cost” means costs incurred or proposed to be incurred by the Township or a local board thereof directly or by others on behalf of and as authorized by the Township or local board:

(1)    to acquire land or an interest in land, including a leasehold interest;

(2)    to improve land;

(3)    to acquire, lease, construct or improve buildings and structures;

(4)    to acquire, construct or improve facilities including;

(a)    furniture and equipment other than computer equipment; and

(b)    material acquired for circulation, reference or information purposes by a library board as defined in Section 1 of the Public Libraries Act, R.S.O. 1990, c. P.44; and

(c)    rolling stock with an estimated useful life of seven years or more; and

(5)    to undertake studies in connection with any matter under the Act and any of the matters in clauses (1) to (4) above, including the development charge background study required for the provision of services designated in this By-law within or outside the Township, including interest on borrowing for those expenditures under clauses (1) to (4) above that are growth-related;

“Commercial” means any use of land, structures or buildings for the purposes of buying or selling commodities and services, but does not include industrial or agricultural uses, but does include hotels, motels, motor inns and boarding, lodging and rooming houses;

“Council” means the Council of the Township;

“Development” means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that the effect of increasing the size of usability thereof, and includes redevelopment;

“Development Charge” means a charge imposed with respect to this By-law;

“Dwelling Unit” means any part of a building or structure used, designed or intended to be used as a domestic establishment in which one or more persons may sleep and may be provided with culinary and sanitary facilities for their exclusive use;

“Existing” means the number, use and size that existed as of the date this By-law was passed;

“Farm Building” means that part of a bona fide farming operation encompassing barns, silos and other ancillary development to an agricultural use, but excluding a residential use. Notwithstanding the foregoing, a farm building does not include retails sales activities including, but not limited to restaurants; banquet facilities; hospitality and accommodation facilities; gift shops; services related to grooming, boarding or breeding of household pets; and marijuana and alcohol processing or production facilities; 

 “Gross Floor Area” means:

(1)    in the case of a residential building or structure, the total area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from any other dwelling unit or other portion of a building; and

(2)    in the case of a non-residential building or structure, or in the case of a mixed-use building or structure in respect of the non-residential portion thereof, the total area of all building floors above or below grade measured between the outside surfaces of the exterior walls, or between the outside surfaces of exterior walls and the centre line of party walls dividing a non-residential use and a residential use, except for:

(a)    a room or enclosed area within the building or structure above or below that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunications equipment that service the building;

(b)    loading facilities above or below grade; and

(c)    a part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use;

“Industrial” means lands, buildings or structures used or designed or intended for use for manufacturing, processing, fabricating or assembly of raw goods, warehousing or bulk storage of goods, and includes office uses and the sale of commodities to the general public where such uses are accessory to an industrial use, but does not include the sale of commodities to the general public through a warehouse club; 

“Institutional” means development of a building or structure intended for use,

(1)        as a long-term care home within the meaning of Subsection 2(1) of the Fixing Long-Term Care Act, 2021, S.O. 2021, c.39, Sched. 1;

(2)        as a retirement home within the meaning of Subsection 2(1) of the Retirement Homes Act, 2010, S.O. 2010, c. 11;

(3)    by any of the following post-secondary institutions for the objects of the institution:

(a)        a university in Ontario that receives direct, regular and ongoing operating funding from the Government of Ontario;

(b)        a college or university federated or affiliated with a university described in Subclause (a); or

(c)         an Indigenous Institute prescribed for the purposes of Section 6 of the Indigenous Institutes Act, 2017, S.O. 2017, c. 34, Sched. 20;

(4)    as a memorial home, clubhouse or athletic grounds by an Ontario branch of the Royal Canadian Legion; or

(5)    as a hospice to provide end of life care;

“Local Board” means a school board, public utility, commission, transportation commission, public library board, board of park management, local board of health, board of commissioners of police, planning board, or any other board, commission, committee, body or local authority established or exercising any power or authority under any general or special Act with respect to any of the affairs or purposes, including school purposes, of the Township or any part or parts thereof;

“Maximum Interest Rate” is as defined by s. 26.3 of the Act;

“Multiple dwellings” means all dwellings other than Single-Detached, Semi-Detached, Apartment, and Special Care dwelling units;

“Non-Profit Housing” means development of a building or structure intended for use as residential premises by:

(1)    a corporation to which the Not-for-Profit Corporations Act, 2010, S.O. 2010, c. 15, applies that is in good standing under that act and whose primary object is to provide housing;

(2)    a corporation without share capital to which the Canada Not-for-profit Corporations Act, S.C. 2009, c. 23, applies that is in good standing under that act and whose primary object is to provide housing;

(3)    a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act, R.S.O. 1990, c. C.35; or

(4)    a corporation to which the Housing Development Act, R.S.O. 1990, c. H.18 applies that is in good standing under that act;

“Non-Residential Use” means a building or structure of any kind whatsoever used, designed or intended to be used for other than a residential use;

“Owner” means the owner of land or a person who has made application for an approval for the development of land upon which a development charge is imposed;

“Place of Worship” means that part of a building or structure that is exempt from taxation as a place of worship under the Assessment Act, R.S.O. 1990, c. A.31;

“Rental Housing” means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises;

“Residential Dwelling” means a building, occupied or capable of being occupied as a home, residence or sleeping place by one or more persons, containing one or more dwelling units but not including motels, hotels, tents, truck campers, tourist trailers, mobile camper trailers or boarding, lodging or rooming houses;

“Residential Use” means the use of a building or structure or portion thereof for one or more dwelling units. This also includes a dwelling unit on land that is used for an agricultural use;

“Row Dwelling” means a building containing three or more attached dwelling units in a single row, each of which dwelling units has an independent entrance from the outside and is vertically separated from any abutting dwelling unit;

“Semi-Detached Dwelling” means a dwelling unit in a residential building consisting of two dwelling units having one vertical wall or one horizontal wall, but not other parts, attached or another dwelling unit where the residential unit are not connected by an interior corridor;

“Service” means a service or class of service designated in Section 2 of this By-law, and “Services” shall have a corresponding meaning;

“Servicing Agreement” means an agreement between a landowner and the Township relative to the provision of municipal services to specified land within the Township;

“Single-Detached Dwelling Unit” means a residential building consisting of one dwelling unit and not attached to another structure; 

“Special Care Dwelling Unit” means a building not otherwise defined herein containing more than four dwelling units where the occupants have the right to use in common halls, stairs, yards, common rooms and accessory buildings, which dwelling units may or may not have exclusive sanitary and/or culinary facilities, that is designed to accommodate individuals with specific needs, where meals are provided within the development on a regular basis and includes a bedroom, student residence, retirement home and lodge, nursing home, granny flat, accessory dwelling and group home;

“Stacked Townhouse Dwelling Unit” means two row dwellings, one on top of each other;

“Township” means the Corporation of the Township of South Stormont.

2.1    The categories of services and classes of service for which development charges are imposed under this By-law are as follows:

1. Fire Protection Services;
2. Services Related to a Highway;
3. Parks and Recreation Services;
4. Land; and
5. Growth-Related Studies Services.

2.2    For greater certainty, this By-law does not impose development charges for water or wastewater services. Capital charges associated with water and wastewater services provided by the Township are recovered pursuant to a separate by-law.

Development charges shall be payable in the amounts set out in this By-law where:

(1)        the development of the lands requires any of the approvals set out in Subsection 3.4(1).

Area to Which By-law Applies

3.2    Subject to Section 3.3, this By-law applies to all lands in the Township of South Stormont whether or not the land or use thereof is exempt from taxation under Sections 3, 4, 6, 6.1, 21, and 22 of the Assessment Act.

3.3.   Notwithstanding Section 3.2 above, this By-law shall not apply to lands that are owned by and used for the purposes of:

1. the Township or a Local Board thereof;
2. a board of education;
3. the Corporation of the United Counties of Stormont, Dundas, and Glengarry; or
4. land vested in or leased to a university that receives regular and ongoing operating funds from the government for the purposes of post-secondary education if the development is intended to be occupied and used by the university.

Approvals for Development

3.4    (1)    Development charges shall be imposed on all lands, buildings, or structures that are developed for residential or non-residential uses if the development requires:

1. the passing of a zoning by-law or of an amendment to a zoning by-law under Section 34 of the Planning Act, R.S.O. 1990, c. P.13;
2. the approval of a minor variance under Section 45 of the Planning Act;
3. a conveyance of land to which a by-law passed under Subsection 50(7) of the Planning Act applies;
4. the approval of a plan of subdivision under Section 51 of the Planning Act;
5. a consent under Section 53 of the Planning Act;
6. the approval of a description under Section 50 of the Condominium Act, R.S.O. 1990, c. C.26; or
7. the issuing of a permit under the Building Code Act in relation to a building or structure.

(2)    No more than one development charge for each service designated in Section 2.1 shall be imposed upon any lands, buildings or structures to which this By-law applies even though two or more of the actions described in Subsection 3.4(1) are required before the lands, buildings or structures can be developed.

(3)    Despite Subsection 3.4(2), if two or more of the actions described in Subsection 3.4(1) occur at different times, additional development charges shall be imposed if the subsequent action has the effect or increasing the need for services.

Exemptions

3.5    Notwithstanding the provisions of this By-law, development charges shall not be imposed with respect to:

1. affordable and attainable residential units that meet the criteria set out in Subsections 4.1(2), (3), or (4) of the Act;
2. affordable residential units required pursuant to Section 35.2 and Subsection 16(4) of the Planning Act (Inclusionary Zoning);
3. non-profit housing units;
4. long-term care homes;
5. an enlargement to an existing dwelling unit;

(6)        a second residential unit in an existing or new detached house, semi-detached dwelling, or row dwelling on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the existing or new detached house, semi-detached dwelling, or row dwelling cumulatively contain no more than one residential unit;

(7)        a third residential unit in an existing or new detached house, semi-detached dwelling, or row dwelling on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the existing or new detached house, semi-detached dwelling, or row dwelling contains any residential units;

(8)        one residential unit in a building or structure ancillary to an existing or new detached house, semi-detached dwelling, or row dwelling on a parcel of land if the existing or new detached house, semi-detached dwelling, or row dwelling contains no more than two residential units and no other building or structure ancillary to the existing or new detached house, semi-detached dwelling, or row dwelling contains any residential units;

(9)        for the purposes of Subsection (8), a residential dwelling unit in a building or structure ancillary to an existing or new single-detached dwelling, semi-detached dwelling, or row dwelling must be a Dwelling, Secondary Unit (Detached) as defined in the Township’s Zoning By-law;

(10)  in an existing rental residential building, which contains four or more residential dwelling units, the creation of the greater of one residential dwelling unit or 1 percent of the existing residential dwelling units; and

3.6        Exemption for Industrial Development:

3.6.1  Notwithstanding any other provision of this By-law, no development charge is payable with respect to an enlargement of the gross floor area of an existing industrial building where the gross floor area is enlarged by 50 percent or less.

3.6.2  If the gross floor area of an existing industrial building is enlarged by greater than 50 percent, the amount of the development charge payable in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows:

1. determine the amount by which the enlargement exceeds 50 percent of the gross floor area before the enlargement; and
2. divide the amount determined under Subsection (1) by the amount of the enlargement.

3.6.3  For the purpose of Section 3.6, “existing industrial building” is used as defined in O. Reg. 82/98 made under the Act.

3.6.4  The exemption for an existing industrial building provided by this Section shall be applied to a maximum of 50 percent of the gross floor area before the first enlargement for which an exemption from the payment of development charges was granted pursuant to this By-law.

3.7        Other Exemptions:

3.7.1  Notwithstanding the provisions of this By-law, development charges shall not be imposed with respect to:

1. farm buildings; and
2. places of worship and cemeteries.

Discounts

3.8        The development charge payable for rental housing developments will be reduced based on the number of bedrooms in each unit as follows:

1. three or more bedrooms - 25% reduction;
2. two bedrooms - 20% reduction; and
3. all other bedroom quantities - 15% reduction.

Residential

3.9        The development charges set out in Schedule “A” shall be imposed on residential uses of lands, buildings, or structures, including a dwelling unit accessory to a non-residential use and, in the case of a mixed-use building or structure, on the residential uses in the mixed-use building or structure, according to the type of residential unit, and calculated with respect to each of the services according to the type of residential use.

Non-Residential

3.10    The development charges described in Schedule “A” to this by-law shall be imposed on non-residential uses of lands, buildings, or structures, and, in the case of a mixed-use building or structure, on the non-residential uses in the mixed-use building or structure, and calculated with respect to each of the services according to the total floor area of the non-residential use. 

Reduction of Development Charges for Redevelopment

3.11  Despite any other provisions of this By-law, where, as a result of the redevelopment of land, a building, or structure existing on the same land within 60 months prior to the date of payment of development charges in regard to such redevelopment was or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts:

1. in the case of a residential building or structure or, in the case of a mixed-use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under Subsection 3.9 by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and
2. in the case of a non-residential building or structure or, in the case of mixed-use building or structure, the non-residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charges under Subsection 3.10 by the gross floor area that has been or will be demolished or converted to another principal use; provided that such amounts shall not exceed, in total, the amount of the development charges otherwise payable with respect to the redevelopment.

3.12  Development charges are due and payable in full to the Township on the date the first building permit is issued for any land, buildings, or structures affected by the applicable development charge, and a building permit with respect to a building or structure shall be withheld where the applicable development charge has not been paid pursuant to Section 28 of the Act.

3.13  Notwithstanding Section 3.12, development charges for rental housing and institutional developments are due and payable in 6 equal installments commencing with the first installment payable on the date of occupancy and each subsequent installment payable on the anniversary date each year thereafter.

3.14  Where the development of land results from the approval of a Site Plan or Zoning By-law Amendment received and approved between January 1, 2020, and June 5, 2024, and the approval of the application occurred within 2 years of building permit issuance, the development charges under Sections 3.9, 3.10, and 3.11 shall be calculated based on the development charges set out in Schedule “A” on the date of the planning application, including interest, based on the maximum interest rate or the current rate in effect. Where both planning applications apply, development charges under Sections 3.9, 3.10, and 3.11 shall be calculated on the development charges set out in Schedule “A” on the date of the later planning application, including interest, based on the maximum interest rate.

3.15. Where the development of land results from the approval of a Site Plan or Zoning By-law Amendment received on or after January 1, 2020, where the approval of the application occurred on or after June 6, 2024, and the approval of the application occurred within 18 months of building permit issuance, the development charges under Sections 3.9, 3.10, and 3.11 shall be calculated based on the development charges set out in Schedule “A” on the date of the planning application, including interest, based on the maximum interest rate or the current rate in effect. Where both planning applications apply, development charges under Sections 3.9, 3.10, and 3.11 shall be calculated on the development charges set out in Schedule “A” on the date of the latter planning application, including interest, based on the maximum interest rate.

3.16. Notwithstanding Sections 3.12 to 3.15, Council from time to time, and at any time, may enter into agreements providing for all or any part of a development charge to be paid before or after it would otherwise be payable, in accordance with Section 27 of the Act.

3.17. Notwithstanding Subsections 3.14 and 3.15, the development charges payable are the lower of the rate calculated in accordance with Subsections 3.14 and 3.15 or the rate in force on the date of building permit issuance.

3.18. Interest for the purposes of Subsections 3.14 and 3.15 shall be determined as prescribed in the Act.

3.19. Interest for the purposes of Subsection 3.13 may only be accrued up to November 3, 2025.

3.20  In accordance with Section 26.1 of the Act, a development charge in respect of residential development, other than rental housing or institutional development, shall be paid in full on the earlier of:

1. the day a permit is issued under the Building Code Act authorizing occupation of the building; and
2. the day the building is first occupied.

3.21  Notwithstanding Subsections 3.13 and 3.20, should the person required to pay the development charge waive the requirement to pay as per Subsection 3.13 of 3.20, the development charge may be paid earlier, without entering into an agreement made under Section 27 of the Act.

Council may authorize an owner, through an agreement under Section 38 of the Act, to substitute to the owner’s development, as may be specified in an agreement, by the provision, at the sole expense of the owner, of services in lieu. Such an agreement shall further specify that where the owner provides services in lieu that relate to a service to which a development charge under this by-law relates, in accordance with the agreement, Council shall give to the owner a credit against the development charge otherwise applicable to the development equal to the reasonable cost to the owner of providing the service in lieu, provided such credit shall not exceed the total development charge payable by an owner to the Township.

Development charges imposed pursuant to this By-law shall be adjusted annually, without amendment to this By-law, on January 1st, in accordance with the last year-over-year change in the Statistics Canada Non-residential Building Construction Price Index for Ottawa-Gatineau.

The following schedules shall form part of this By-law: 

Schedule “A” - Residential and Non-Residential Development Charges

7.1    Where the Township and an owner or former owner have entered into an agreement with respect to land within the area to which this By-law applies and a conflict exists between the provisions of this By-law and such agreement, the provisions of the agreement shall prevail to the extent that there is a conflict.

7.2    Notwithstanding Section 7.1, where a development that is the subject of an agreement to which Section 7.1 applies is subsequently the subject of one or more of the actions described in Subsection 3.4(1), an additional development charge in respect of the development permitted by the action shall be calculated, payable, and collected in accordance with the provisions of this By-law if the development has the effect of increasing the need for services, unless such agreement provides otherwise.

8.1    An agreement with respect to charges related to development registered prior to the passing of this By-law remains in effect after the enactment of this By-law.

9.1    A certified copy of this By-law may be registered on title to any land to which this By-law applies.

10.1  This By-law shall come into force and effect on September 15, 2026.

11.1  On September 15, 2026, when By-law No. 2026-046 comes into effect, By-law No. 2022-057, being a By-law for the Imposition of Development Charges, is hereby repealed.

This By-law will expire at 12:01 AM on September 15, 2036, unless it is repealed by Council at an earlier date.

Schedule of Development Charges

2026 Development Charges Rates: Residential