Hamilton City Council will vote on a recommendation to end the City’s Community Benefit Charges. CBC’s are collected under the authority of the Development Charges Act.
The CBC charge is calculated as four percent of land value on new construction. It collects most of its funds from denser developments in the downtown area and along corridors where land values are higher compared to white belt lands used for single-detached and townhouse developments.
If City Council votes to end community benefit charges, the City of Hamilton will use its existing development charges reserves to pay for new parking lots, parking garages, the expansion of the City’s information technology department, and planning studies.
Despite being named “community benefit,” the City of Hamilton primarily uses the funds to pay for bureaucratic costs and initiatives.
In April, City Council directed City staff to propose changes to the City’s development charges that could lower the costs for new construction in the short term.
Hamilton Council is attempting to respond to Mississauga’s aggressive housing strategy. Mississauga’s strategy incentivizes new family rental housing by waiving all development charges for three-bedroom or more units, waiving 50 percent of charges for two-bedroom units, and decreasing property taxes for rentals.
The City of Hamilton collected $79,113 in CBC fees in 2024. The City does not expect to collect any CBC fees in 2025 due to the lack of housing starts.
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Published: May 18, 2025
Last updated: May 18, 2025
Author: Joey Coleman
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