Ottawa working with provinces to reduce developer fees, minister says

The federal government is discussing a joint program with provinces to invest about $25 billion in community infrastructure to lower development charges, Housing Minister Gregor Robertson said. He also noted the federal Build Canada Homes agency has an initial $13 billion commitment to support non-market housing and modern construction methods.

The federal government is in talks with provincial governments about jointly funding community infrastructure and reducing developer fees, Housing Minister Gregor Robertson told a Greater Vancouver Board of Trade meeting on Feb. 20. The proposal would pair federal dollars with provincial matches to pay for services such as water, transit and community centres. The issue has risen to prominence because homebuilders in British Columbia and elsewhere say development charges add to the cost of delivering new housing. Robertson also discussed the role of the Build Canada Homes agency in supporting non-market housing and modern construction methods. Key details: - The two levels of government could jointly invest up to $25 billion to fund community infrastructure and lower development charges, according to Robertson. - The federal Build Communities Strong Fund currently includes $12.2 billion that provinces are expected to match roughly 50-50, which brings the combined figure close to $25 billion. - Officials are still in discussions with provinces to secure matching commitments and to roll the arrangement out with a new infrastructure fund. - Homebuilders in B.C. have pointed to developer fees as a major factor in a "cost-of-delivery" problem, where building costs outpace what buyers can afford. - Robertson said Build Canada Homes has an initial $13 billion over five years to focus on non-market housing and to encourage modern methods of construction for developers. Summary: If provincial governments agree to match federal contributions, the plan is intended to reduce the development charges that local governments levy while funding needed community infrastructure. Discussions with provinces are ongoing and the next stated step is securing those commitments before rolling out the new infrastructure fund.