New housing bill could put $342M hole in Brampton budget and could stall developments: report

Brampton could end up with a $342 million hole in current and future budgets due to sweeping development changes and a provincial housing target that puts a priority on building “quantity over quality” projects, according to a new report.

Ontario’s Bill 17, known as Protect Ontario by Building Faster and Smarter Act, was tabled in May and received royal assent earlier this month, introducing changes to several housing rules under the Development Charges Act, Planning Act, among others.

The changes are the latest step in the province’s push to build 1.5 million new homes across Ontario by 2031, including some 113,000 new households in Brampton – a target that’s more than triple what the city had planned for.

But a report going to council this week shows that slashing or delaying development charges “will result in significant near-term revenue shortfalls” in Brampton, up to $342 million.

Development charges are one-time fees, paid by developers to help pay for the capital costs of new development projects, including infrastructure like roads, water, and sewers.

And without a way to make up the funds, some roads, transit, sports and community projects are at risk of stalling.

RELATED: Developer charges slashed up to 25% for rental builds to meet province’s housing goals in Brampton

A report on Bill 17’s expected impact on the city’s coffers shows the city could lose $84 million to $112 million in deferred development charges in the first year, and another $13 to $21 million annually.

“This reduced cash inflow will constrain the City’s ability to finance planned capital infrastructure investments — $567 million over 2025–2029, of which $342 million is expected to be funded from DCs,” the report reads.

The shortfall means the city would have to look for funding elsewhere.

The report suggests Brampton City Council call on the province “to provide municipalities with additional revenue tools to support growth-related infrastructure funding.”

The city could also use property tax revenue “to bridge funding gaps,” which could “increase tax burdens on existing residents.”

“Without alternative funding tools or mechanisms, key projects may be delayed or cancelled, potentially stalling the delivery of necessary infrastructure and contributing to inflation-related cost increases of $1.2 to $2 million annually.”

The city also says the push to meet a massive housing target has “prioritized quantity over quality, leading to unintended negative City building outcomes.”

Brampton’s annual budget and capital funding plan banked on revenue from development charges, but the city now says that money “will not materialize for 2025, which necessitates a funding review of the existing capital program.”

The city updated its development charge bylaws last year with a 7 per cent drop in developer charges for single and semi-detached homes ($65,404), apartment buildings (between $22,763 and $36,989) and industrial builds ($114.19).

Changes to the Planning Act under Bill 17 require municipalities to “automatically accept studies or materials prepared by certified professionals,” like engineers, “without further scrutiny for completeness” – a move that increases “risks of poor-quality and developments that do not align with Brampton’s overall planning vision.”

“Local context, transparency and municipal oversight are essential for responsible planning and public trust,” the city says of the change.