Payment of Development Charges

Payment procedure

  1. Consult with your local building official
    Any person or business who is planning a construction project must consult with their local building official to get a building permit. Regional development charges is just one component of your building permit fee.
  2. Complete and submit the proper forms
    Your local building official will provide you with more information and access to all the forms that will need to be completed before moving ahead.
  3. Review building permit and pay fees before proceeding
    Once the building permit request is submitted, your local official will provide you with a breakdown of costs, including permit fees, local development charges and Regional development charges. Regional development charges must be paid before the building permit will be issued unless the development meets the eligibility criteria for annual instalments.

Annual instalments

Under section 26.1 of the Development Charges Act, there are certain types of development that are eligible for payment of development charges in annual instalments. An instalment acknowledgement letter is required from the applicant before a building permit is issued.

The Development Charges Act was updated on Jan. 1, 2020. Learn about the changes to the Development Charges Act.

  • Rental housing development

    Rental housing development includes rental housing that is not non-profit housing. Housing must contain four or more dwelling units, all of which are intended for use as rented residential premises.

    Payment schedule

    Rental housing developments are eligible for development charges to be paid in six equal instalments.

    • The first instalment is due at time of occupancy or issuance of an occupancy permit (which ever occurs first)
    • The following five instalments are due on annual anniversary of due date of first payment
    • Instalments are subject to five per cent interest rate on instalments (annual, non-compounding)

    See an example of an instalment schedule for a rental housing development.

  • Institutional development

    Institutional development means development of a building or structure intended for use:

    • As a long-term care home within the meaning of subsection 2 (1) of the Long-Term Care Homes Act, 2007
    • As a retirement home within the meaning of subsection 2 (1) of the Retirement Homes Act, 2010
    • By any of the following post-secondary institutions for the objects of the institution:
      • A university in Ontario that receives direct, regular and ongoing operating funding from the Government of Ontario
      • A college or university federated or affiliated with a university described in sub-clause (i)
      • An Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institutes Act, 2017
    • As a memorial home, clubhouse or athletic grounds by an Ontario branch of the Royal Canadian Legion
    • As a hospice to provide end of life care

    Payment schedule

    Institutional developments are eligible for development charges to be paid in six equal instalments.

    • The first instalment is due at time of occupancy or issuance of an occupancy permit (which ever occurs first)
    • The following five instalments are due on annual anniversary of due date of first payment
    • Instalments are subject to five per cent interest rate on instalments (annual, non-compounding)

    See an example of an instalment schedule for an institutional development.

  • Non-profit housing development

    Non-profit housing development means development of a building or structure intended for use as residential premises by:

    • A corporation without share capital to which the Corporations Act applies, that is in good standing under that act and whose primary object is to provide housing
    • A corporation without share capital to which the Canada Not-for-profit Corporations Act applies, that is in good standing under that act and whose primary object is to provide housing
    • A non-profit housing co-operative that is in good standing under the Co-operative Corporations Act. O. Reg. 454/19

    Payment schedule

    Non-profit housing developments are eligible for development charges to be paid in 21 equal instalments.

    • The first instalment is due at time of occupancy or issuance of an occupancy permit (which ever occurs first)
    • The following twenty instalments are due on annual anniversary of due date of first payment
    • Instalments for this development type are exempt from interest charges

    See an example of an instalment schedule for a non-profit housing development.

Instalment acknowledgement letter

The person responsible for paying development charges must get confirmation that the development charges annual instalment acknowledgement letter has been received before a building permit is issued.

The local municipality will forward a copy of the acknowledgement letter to Niagara Region with the email address noted on the letter.

Schedule of payment instalments

The person responsible for paying development charges must notify the local municipality and Niagara Region in writing within five business days of the building first being occupied unless an occupancy permit has been issued by the local municipality for the purposes of section 26.1 of the Development Charges Act.

Niagara Region will provide an instalment schedule to the person required to pay development charges once notified of occupancy or issuance of an occupancy permit.

Acknowledgement of the payment schedule and the first instalment payment is due within 15 days of the payment schedule being provided. Payment must be provided as per the schedule. No further notification of upcoming payments will be given.

Any instalment payment defaults will be subject to a Regional administration fee of $550 as per the Region's user fee by-law.

Early payment agreement

Owners may enter into an early payment agreement with the Region if the payment is to be made before prescribed instalment due dates. The owner(s) must notify the Region and complete the early payment agreement form.

You may pay the full development charges, plus accrued interest (if applicable) at any time.

Contact

For more information, email the development charges team.

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