Ottawa Committee Approves Decrease to Development Charges

Ottawa’s Planning and Housing Committee has approved amendments to the city’s Development Charges (DC) By-law along with updates to the 2026 Development Charges Background Study. These changes are designed to ensure the City collects the right amount of funding for growth‑related infrastructure while avoiding unnecessary cost pressures on new housing.

The update aligns development charges with the City’s Transportation Master Plan, which Council approved in 2025. That plan included a revised schedule of transportation projects needed to support population growth and new development across Ottawa.

What’s Changing?

Citywide Decrease in Development Charges

Residential development charges will decrease by an average of 1% citywide, with variations based on geography:

• Inside the Greenbelt: ~1% decrease
• Outside the Greenbelt: ~2% decrease
• Rural areas: essentially stable, with a slight 0.1% increase

For non‑residential projects (commercial, industrial, institutional), DC rates will decrease by an average of 3% citywide.

Why the Adjustment?

Development charges fund essential infrastructure tied to growth, including:

• Water and wastewater systems
• Stormwater management
• Public transit
• Roads and transportation networks
• Parks, recreation, and community facilities
• Libraries and paramedic services

The newly approved calculation method differentiates between projects that support new growth and projects that benefit existing residents, ensuring charges are more accurately allocated.

Ottawa consistently aims to keep development charges moderate, balancing the cost of growth with the need to maintain housing affordability and market viability.

What Happens Next?

City Council will review and vote on the committee’s recommendations on March 11. If approved, the updates will take effect as part of Ottawa’s ongoing efforts to plan responsibly for growth while supporting a healthier housing market.