The City of Ottawa must adopt a new CBC strategy and By-law by the statutory deadline of September 18, 2022, as set out by the Government of Ontario through the More Homes, More Choice Act 2019, the COVID-19 Economic Recovery Act 2020, and the More Homes for Everyone Act 2022 (Bill 109).
The CBC By-law will be tabled at Planning committee on August 25th, and to Council on August 31, 2022. The By-law would come into effect on September 19, 2022. Over the course of 3 years, legislative changes regarding the Planning Act have replaced density bonusing associated with Section 37 titled agreements on land and Zoning By-law amendments to a newly regulated Community Benefits Charge.
The CBC charge applies to all development or redevelopment that is 5 or more storeys in height and that add 10 or more residential units. The charge only applies to mid high-rise residential and mixed-use development within the City. The Planning Act prescribes types of development that are exempt from the charge.
The CBC charge will continue to address financial support for community-oriented projects as per previous Section 37 agreements. Upon adoption, the CBC charge is to be implemented on a piloted basis and will be reviewed with the scheduled Development Charges By-law in 2024.
Since the framework direction on CBCs was approved by Council in February 2021, staff have engaged with members of Council, stakeholders, and industry to gather feedback and input on multiple aspects of the CBC charge including, its policy, By-law and illustrative example list of projects. Staff reviewed several charge collection options and recommend implementing a flat 4% charge of the land value subject to the development application. The charge applies to the entire city boundary where development meets the CBC criteria.
The rationale, modelling, projections and forecasting behind projects is provided within the “Strategy Report”. The Strategy Report includes a project list that describes various categories and specific projects that can be funded by the CBC’s revenue. This list is an illustrative example and is subject to change, and by no means are the only projects that can be funded from the collection of the charge.
Upon Council approval of the CBC By-law, the following steps are to take place;
- Enactment of the By-law into effect on September 19, 2022
- Communication and applicable training to Council, internal staff, residents, and the industry
- Review of the CBC By-law with the Development Charge By-law May 2024.