FAQs

Municipalities in Ontario use Development Charges (DCs) to recover growth related capital costs associated with residential and non-residential growth. 

In accordance with the Development Charges Act, 1997(External link), DCs are collected at the building permit stage to help the Town pay for the capital related costs of municipal services needed to support the new development. These services include, roads, fire emergency services, parks, recreation, libraries and by-law enforcement.  

Section 2 of the Development Charges Act, 1997(External link) (DCA) allows for, development charges to be collected for developments that requires approval under the:

• Planning Act for a zoning by-law amendment, a minor variance, a conveyance of land, approval of a plan of subdivision or consent under section 53. 
• Condominium Act for the approval of a description under section 9, or 
• Building Code Act for the issuing of a permit in relation to a building or structure.  

The DCA also specifies that the following development does not incur development charges. 

• The enlargement of an existing dwelling unit (i.e. adding additional gross floor area to a residential home, as long as additional dwelling units are not created), 
• The creation of additional dwelling units (depending on the number created) in existing residential buildings, when no additional gross floor area is added. 
• The creation of ancillary dwelling unit on an existing parcel with a detached house, semi-detached house or rowhouse that contains no more than two residential units and no other building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units
• Expansion of existing industrial development, for enlargements where the gross floor area is expanded by 50% or less. 
• Municipalities or a board as defined in subsection 1(1) of the Education Act. 
• Affordable and attainable housing units
• Non-profit housing development
• Inclusionary zoning units

Development charges are also not applicable to interior renovation building permits unless the renovation is for the purpose of a change of use (between development types) or additional non-residential gross floor area is added.

The Town of Ajax, the Region of Durham and the School Board apply their own development charges rates per their individual by-laws.

The total amount due will be coordinated and collected by the Town of Ajax.

Development Charges (DC) are calculated at the time of building permit issuance. Please refer to the website Development Charges - Town of Ajax(External link) for more information on the timing of the DC calculation and the applicable DC rate used.

Please refer to the Town of Ajax Development Charge web page for information on the current rates.

Development Charges - Town of Ajax(External link)  

Based on recent legislated changes to the Development Charges Act, 1997(External link) the current posted development charge (DC) rate may not be DC rate charged for that development. If applicable, the submission and approval dates of the Site Plan application and/or Zoning By-law Amendment application, pertaining to the property, may affect the base DC rate. This link FIN-026 DC rate table - Jan 1, 2020 to present updated(External link) outlines when a different DC rate shall be used, and Town policy pertaining to the development charge calculation, including when/how interest is applied.

For most types of development, development charges are paid in full just prior to the issuance of the building permit.

Recent legislated changes to section 26.1 of the Development Charges Act(External link) (DCA) and specify two types of development  (Institutional Development and Rental Housing Development) that shall pay their development charges on an installment basis.   

Under the Development Charges Act, 1997(External link), the development charge rate a municipality applies to new development must be substantiated through a Development Charge Background Study.  

The preparation of the study includes mandatory requirements such as the calculation of a service level cap for each eligible service area (i.e. Parks, Recreation, Roads, Libraries, By-Law Enforcement, etc.).  This service level cap is based on the municipalities average service level of the past 15 years.   When determining the DC charge for each service the calculated service level cap cannot be exceeded.

Legislation also does not allow all municipal services to be funded from development charges (i.e. parking, cultural, tourism, cemeteries, general administration, hospitals, etc.).  Costs for those services must be paid from the tax base.

As per legislation, development charges can only be used to fund initial cost to construct a growth related asset. The cost of growth includes not only the cost to construct the capital infrastructure required, but the operating budget pressure to operate and maintain those assets every year.

The Town's most recent Development Charge By-Law(s) can be found at the following:

Town of Ajax Development Charge By-Law (2018)(External link)

Town of Ajax Amended Development Charge By-Law (2020)(External link)

Please e-mail DCStudy@ajax.ca(External link) or post a question in the Q&A section if you have any further questions.