Bill 17 amended the Development Charges Act, 1997 (the “DCA”) to allow development charges for residential developments to be deferred to either the issuance of an occupancy permit or the first occupancy of the building, whichever is earlier. These amendments have not yet been proclaimed into force.
On October 3, 2025, the Ministry of Municipal Affairs and Housing (“MMAH”) posted a regulatory proposal to the Ontario Regulatory Registry proposing amendments to O. Reg. 163/24, the Building Code, to operate alongside these changes, providing assurance that development charges will be collected after deferral.
The proposal would impose a requirement for an occupancy permit for non-rental residential buildings, including stacked townhouses, where a builder elects to defer development charges under s. 26.1(3.1) of the DCA. This would include buildings that have been completed but are not yet occupied and may not presently require an occupancy permit. Further, it is proposed that the chief building official’s authority would be expanded to withhold issuance of an occupancy permit until the development charges have been paid in full.
The changes are not proposed to buildings which are not subject to a development charge deferral, to rental or institutional buildings which have development charge deferrals or where a late payment agreement under s.37 of the DCA is in place.
MMAH is seeking feedback on the practical considerations of withholding occupancy permits, the treatment of phased or partial occupancy, whether there is support for extending the time for municipalities to complete a prescribed inspection to permit occupancy, and any consequential improvements to occupancy-related provisions or other supports. The regulatory proposal is open for comment until October 17, 2025.
For guidance or questions on submitting feedback, Davies Howe LLP’s Land Development team is ready to assist.