Building a home in Ottawa could soon cost developers, or you, an extra $12K

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A builder carries a sheet of wood on the roof of a home in a new subdivision in Ottawa's Kanata suburb on July 30, 2021.

Ottawa's development industry is feeling sticker shock from a proposed hike for the charges that pay for new roads, water pipes, libraries and parks, with experts warning the extra $12,000 could stop homes from being built.Developers could soon pay more than $55,000 to build a detached home inside the Greenbelt, and more than $44,000 to build a row house.

But industry stakeholders found this year's process particularly chaotic, as staff rushed to ensure the bylaw can be approved days before it expires.Two overarching planning documents guide the process: the infrastructure and transportation master plans.What Ontario's urban boundary reversal means for OttawaIdeally, city staff would be waiting to update the development charges bylaw with the new versions of those master plans, but the province set a deadline that can't be changed.

"You could turn around and be on the hook for another five, to ten, to $14,000 depending on where you are in the city," he said. "There could be a lot of families on the hook." "They greatly increase the unaffordability of new buildings for renters and owners," she said. "They've gotten completely out of control."

In order to justify the bottom line charges, staff must explain exactly where every dollar taken from developers will go.Burggraaf went through every line item in the city's 358-page background study, and argued that developers are shouldering too much of the burden for projects like debt servicing costs for light-rail transit projects,

 

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