Ontario city drops development charges dramatically to spur housing starts [Video]

An Ontario city is lowering the fees it charges developers to build new housing “dramatically,” in a move local and provincial politicians hope will help to boost the number of homes built.

Vaughan, located directly north of Toronto, announced the move this week, lowering development charges for all new homes back to their 2018 rates — and keeping them at that rate for at least the next five years.

The move means developers will pay the city less to build. Homebuilders have long asked for a reduction in the fees they pay, claiming the charges levelled by municipalities to pay for infrastructure and local amenities are prohibitively high.

Vaughan Mayor Steven Del Duca appears to agree.

“Development charges have become an unfair tax burden on homebuyers,” he said in a statement announcing the development charge drop.

“Too many of our residents, in particular young families in our community, have seen their dream of buying a home close to …