Item - 2026.MM42.44

Tracking Status

  • City Council adopted this item on June 24, 25 and 26, 2026 with amendments.

MM42.44 - Reducing Development Charges in Partnership with the Provincial and Federal Governments - by Mayor Olivia Chow, seconded by Councillor Shelley Carroll

Status:
Amended
Wards:
All

Caution: Motions and votes are shown below. Any motions or votes should not be considered final until the meeting is complete, and the decisions for this meeting have been confirmed.

Recommendations

Mayor Olivia Chow, seconded by Councillor Shelley Carroll recommends that:

 

1. City Council adopt the following recommendations in the report (June 23, 2026) from the Chief Financial Officer and Treasurer:

 

1. City Council authorize the Chief Financial Officer and Treasurer, on behalf of the City of Toronto, to negotiate terms and execute a Transfer Payment Agreement with the Government of Canada and/or Province of Ontario, for the purposes of receiving funds for the provision of a development charge rate reduction effective from March 30, 2026, and ending at three years after the date of the Transfer Payment Agreement, in a form satisfactory to the City Solicitor.

 

2. City Council direct the Chief Financial Officer and Treasurer to report back to the July 2026 City Council meeting with proposed by-law amendments for City Council’s consideration which include a decrease of the current development charge rates for residential developments as follows, that will apply contingent on the execution of the Transfer Payment Agreement and on other such circumstances specified in the amendments:

 

a. for all rental and non-rental units with 1 bedroom or less, a discount of 40 percent from current rates; and


b. for all rental and non-rental units with 2 bedrooms and larger, as well as dwelling rooms, singles and semis, a discount of 60 percent from current rates.

 

3. City Council direct the Chief Financial Officer and Treasurer to include in the report to the July City Council meeting further implementation considerations required to successfully implement the direction in Recommendation 2.


4. City Council approve Phase 2 of the Purpose-built Rental Homes Incentives stream of the Rental Housing Supply Program substantially on the terms and conditions set out in Attachment 2 to this Report, and on such additional terms and conditions satisfactory to the Executive Director, Housing Secretariat, provided that such additional terms and conditions do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

 

5. City Council authorize the Executive Director, Housing Secretariat, following the execution of the Transfer Payment Agreement referenced in Recommendation 1 above, to release a Call for Applications under Phase 2 of the Purpose-built Rental Homes Incentives stream of the Rental Housing Supply Program to identify up to a total of 10,000 new rental homes, including a minimum of 2,000 affordable homes and up to 8,000 market rental homes in eligible rental housing projects, and to approve:

 

a. City benefits available under the Rental Housing Supply Program to eligible affordable rental homes within the approved projects; and

 

b. a deferral of development charges payable by the purpose-built rental units within the approved projects in accordance with Recommendation 6 below.

 

6. City Council authorize severally the Executive Director, Housing Secretariat and Executive Director, Housing Development Office to negotiate and execute any agreements or documents necessary to implement the program referenced in Recommendations 4 and 5, including agreements with the appropriate legal entities pursuant to Section 27 of the Development Charges Act, to defer the payment of development charges payable in relation to market rental units within projects approved through the Call for Applications for as long as they meet program eligibility requirements, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and Executive Director, Housing Development Office, and in a form satisfactory to the City Solicitor.


7. City Council direct the Executive Director, Housing Secretariat and Executive Director, Housing Development Office to require approved projects, as referenced in Recommendation 5, to continually demonstrate progress towards construction start, and where necessary reallocate incentives to other eligible projects, in accordance with program guidelines and agreements.


8. City Council direct the Executive Director, Housing Secretariat, to consult with the Chief Executive Officer, CreateTO to assess any applications received from in-flight housing projects on City-owned or City-controlled land under Phase 2 of the Purpose-built Rental Housing Incentives stream, in consideration of other financial support provided by the City to these developments.

Background Information (City Council)

Member Motion MM42.44
https://www.toronto.ca/legdocs/mmis/2026/mm/bgrd/backgroundfile-288661.pdf
(June 23, 2026) Attachment 1 - Report and attachments 1 and 2 from the Chief Financial Officer and Treasurer on Canada-Ontario Partnership to Build: City of Toronto's Submission to the Development Charges Reduction Program and Updates to Purpose-Built Rental Incentives
https://www.toronto.ca/legdocs/mmis/2026/mm/bgrd/backgroundfile-288662.pdf
Presentation from the Chief Financial Officer and Treasurer on the City of Toronto’s Submission to the Development Charges Reduction Program and Updes to Purpose-Built Rental Incentives
https://www.toronto.ca/legdocs/mmis/2026/mm/bgrd/backgroundfile-288693.pdf
Fiscal Impact Statement from the Chief Financial Officer and Treasurer
https://www.toronto.ca/legdocs/mmis/2026/mm/bgrd/backgroundfile-288765.pdf

Communications (City Council)

(June 24, 2026) E-mail from Nicole Corrado (MM.New)

Motions (City Council)

1a - Motion to Amend Item (Additional) moved by Councillor Stephen Holyday (Lost)

That:

 

1. City Council request the City Manager to negotiate with the Government of Canada and/or Province of Ontario to structure the Canada-Ontario Partnership to Build - Development Charge Reduction Program as a rebate incentive to eligible developments, and to include this in the expected report back to City Council in July 2026.

Vote (Amend Item (Additional)) Jun-24-2026 6:02 PM

Result: Lost Majority Required
Total members that voted Yes: 2 Members that voted Yes are Jon Burnside, Stephen Holyday
Total members that voted No: 24 Members that voted No are Paul Ainslie, Brad Bradford, Alejandra Bravo, Shelley Carroll, Lily Cheng, Rachel Chernos Lin, Olivia Chow, Mike Colle, Vincent Crisanti, Paula Fletcher, Parthi Kandavel, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that were Absent: 0 Members that were absent are

1b - Motion to Amend Item (Additional) moved by Councillor Stephen Holyday (Lost)

That:

 

1. City Council direct that the Development Charge Reduction Program and the Purpose Bult Rental Housing Incentives program incentives for eligible developments be identified in the Financial Impact section of individual development approval staff reports in instances when this information is known.

Vote (Amend Item (Additional)) Jun-24-2026 6:03 PM

Result: Lost Majority Required
Total members that voted Yes: 7 Members that voted Yes are Brad Bradford, Jon Burnside, Rachel Chernos Lin, Vincent Crisanti, Parthi Kandavel, James Pasternak, Anthony Perruzza
Total members that voted No: 19 Members that voted No are Paul Ainslie, Alejandra Bravo, Shelley Carroll, Lily Cheng, Olivia Chow, Mike Colle, Paula Fletcher, Stephen Holyday, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), Gord Perks, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that were Absent: 0 Members that were absent are

1c - Motion to Amend Item (Additional) moved by Councillor Stephen Holyday (Lost)

That:

 

1. City Council direct the Executive Director, Development Review, to identify within the individual development approval staff reports the commensurate reduction in density to eligible projects as a result of the application of the Development Charge Reduction program.

Vote (Amend Item (Additional)) Jun-24-2026 6:04 PM

Result: Lost Majority Required
Total members that voted Yes: 4 Members that voted Yes are Vincent Crisanti, Stephen Holyday, James Pasternak, Anthony Perruzza
Total members that voted No: 22 Members that voted No are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Rachel Chernos Lin, Olivia Chow, Mike Colle, Paula Fletcher, Parthi Kandavel, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), Gord Perks, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that were Absent: 0 Members that were absent are

1d - Motion to Amend Item (Additional) moved by Councillor Stephen Holyday (Carried)

That:

 

1. City Council direct the Chief Financial Officer and Treasurer, in coordination with the Executive Director, Development Review, and the Executive Director, Housing Secretariat, to prepare an annual report to City Council which lists the successful application details and amounts of all development projects which access the incentives programs.

Vote (Amend Item (Additional)) Jun-24-2026 6:06 PM

Result: Carried Majority Required
Total members that voted Yes: 20 Members that voted Yes are Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Rachel Chernos Lin, Vincent Crisanti, Paula Fletcher, Stephen Holyday, Parthi Kandavel, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, James Pasternak, Anthony Perruzza, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that voted No: 6 Members that voted No are Paul Ainslie, Olivia Chow, Mike Colle, Jamaal Myers, Frances Nunziata (Chair), Gord Perks
Total members that were Absent: 0 Members that were absent are

2 - Motion to Amend Item (Additional) moved by Councillor Mike Colle (Carried)

That:

 

1. City Council request the Minister of Municipal Affairs and Housing to impose a time limit on development applications that have been approved through the City's planning process yet the development site has sat vacant for a long period of time, for which no building permit application has been received.

Vote (Amend Item (Additional)) Jun-24-2026 6:08 PM

Result: Carried Majority Required
Total members that voted Yes: 19 Members that voted Yes are Paul Ainslie, Alejandra Bravo, Lily Cheng, Rachel Chernos Lin, Olivia Chow, Mike Colle, Vincent Crisanti, Paula Fletcher, Stephen Holyday, Parthi Kandavel, Ausma Malik, Nick Mantas, Amber Morley, Jamaal Myers, James Pasternak, Anthony Perruzza, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that voted No: 6 Members that voted No are Brad Bradford, Jon Burnside, Shelley Carroll, Chris Moise, Frances Nunziata (Chair), Gord Perks
Total members that were Absent: 1 Members that were absent are Josh Matlow

3 - Motion to Amend Item (Additional) moved by Mayor Olivia Chow (Carried)

That:

 

1. City Council direct the City Manager, in consultation with the City Solicitor and the Chief People Officer, to enter into negotiations for Voluntary Recognition Agreements in Toronto's non-industrial, -commercial and -institutional (ICI) construction sectors with the following unions or, where the union with bargaining rights in the non-ICI sector is a separate local of the same international union, their appropriate non-ICI counterpart, and with any corresponding accredited Employer Associations: Labourers' International Union of North America (LIUNA) Local 183; Heat and Frost Insulators and Allied Workers (Insulators); International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers (Ironworkers); United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry (Plumbers); International Brotherhood of Electrical Workers (Electricians); International Association of Sheet Metal, Air, Rail and Transportation Workers Local 285 formerly known as Sheet Metal Workers' International Association, Local 285; International Union of Bricklayers and Allied Craftworkers, Local 2; International Union of Painters and Allied Trades – Glaziers Division (Glaziers); and International Union of Painters and Allied Trades (Painters), and that:
 

a. the Voluntary Recognition Agreement with LIUNA Local 183 will recognize LIUNA Local 183's bargaining rights in the Residential, Heavy Construction, Road Work, and Sewers and Watermain only, and will expressly specify that the City does not recognize LIUNA Local 183's bargaining rights in any other sector that is not already recognized;

 

b. the Voluntary Recognition Agreements with each of the other eight building trades locals listed above will recognize their respective bargaining rights in the Residential sector only, and will expressly confirm that recognition applies to the Residential sector only and does not alter or expand any existing ICI sector recognition or collective agreement where such recognition or collective agreement already exists;

 

c. each Voluntary Recognition Agreement will include language to give effect to the following:


1. construction phase only, not the operation or maintenance of completed buildings;


2. direct City procurement only, excluding projects where the City's role is limited to capital contribution, grants, land conveyance, or loan guarantees to third-party developers;


3. eligibility of non-union general contractors to bid on City projects, provided covered trade work is subcontracted to union-signatory employers;


4. project thresholds and exemptions to protect the participation of small construction companies, including a value threshold and an exemption for sole proprietors and small firms;


5. not applicable to modular and prefabricated construction at any stage, including off-site fabrication, on-site assembly, and supplier sourcing; the scope of Voluntary Recognition Agreements with respect to modular and prefabricated construction may be reviewed in future as the industry and applicable labour relations frameworks develop;


6. negotiate a dispute resolution process that resolves Labour Board disputes with no delays to construction, no costs or damages to the City, contractors, or bidders, no cost recovery against the City or its contractors, and focuses on go-forward outcomes;


7. protection of TCEU Local 416, with language tailored to the sector of each agreement; and


8. carve-outs for work placed through the City's Social Procurement Program and Community Benefits Framework for workforce development purposes.

 

2. City Council request the City Manager report to the Executive Committee in the first quarter of 2027 with an update on the status of negotiations of the Voluntary Recognition Agreements in Recommendation 1 above and an anticipated timeline to their conclusion.

Vote (Amend Item (Additional)) Jun-24-2026 6:09 PM

Result: Carried Majority Required
Total members that voted Yes: 22 Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Shelley Carroll, Olivia Chow, Mike Colle, Vincent Crisanti, Paula Fletcher, Parthi Kandavel, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that voted No: 4 Members that voted No are Jon Burnside, Lily Cheng, Rachel Chernos Lin, Stephen Holyday
Total members that were Absent: 0 Members that were absent are

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Jun-24-2026 6:10 PM

Result: Carried Majority Required - Parts 1-3
Total members that voted Yes: 26 Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Rachel Chernos Lin, Olivia Chow, Mike Colle, Vincent Crisanti, Paula Fletcher, Stephen Holyday, Parthi Kandavel, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 0 Members that were absent are

Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Jun-24-2026 6:12 PM

Result: Carried Majority Required - Balance of the item as amended
Total members that voted Yes: 25 Members that voted Yes are Paul Ainslie, Brad Bradford, Alejandra Bravo, Jon Burnside, Shelley Carroll, Lily Cheng, Rachel Chernos Lin, Olivia Chow, Mike Colle, Vincent Crisanti, Paula Fletcher, Parthi Kandavel, Ausma Malik, Nick Mantas, Josh Matlow, Chris Moise, Amber Morley, Jamaal Myers, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Dianne Saxe, Neethan Shan, Michael Thompson
Total members that voted No: 1 Members that voted No are Stephen Holyday
Total members that were Absent: 0 Members that were absent are
Source: Toronto City Clerk at www.toronto.ca/council