City of Ottawa 2014 Development Charges Background Study

City of Ottawa 2014 Development Charges Background Study Affordable Housing July 8, 2014

Purpose To recover the capital costs associated with residential and non-residential growth within the municipality p The capital costs are in addition to what costs would normally be constructed as part of a subdivision (i. e. internal roads, sewers, watermains, roads, sidewalks, streetlights, etc. ) p Municipalities are empowered to impose these charges via the Development Charges Act (DCA) p 1

Development Charges Methodology 2

Development Charges Methodology 1. Identify amount, type and location of growth p Affordable Housing Services maximum 10 -year forecast period p Charges imposed on residential development types Inside Greenbelt Urban Outside Greenbelt Rural City of Ottawa % Inside Greenbelt % Urban Outside Greenbelt % Rural 3 2014 Dwelling Units 2024 2014 Population 2024 2031 246, 011 270, 024 121, 324 32, 995 Dwelling Unit Growth 2014 -2024 2014 -2031 Population Growth 2014 -2024 2014 -2031 286, 819 529, 498 570, 377 598, 155 24, 014 40, 808 40, 880 68, 658 152, 152 38, 173 168, 927 41, 295 325, 753 93, 631 388, 588 105, 090 425, 711 111, 974 30, 828 5, 178 47, 603 8, 300 62, 835 11, 460 99, 958 18, 343 400, 330 460, 349 497, 041 948, 881 1, 064, 056 1, 135, 840 60, 019 96, 711 115, 175 186, 959 61. 5% 58. 7% 57. 7% 55. 8% 53. 6% 52. 7% 40. 0% 42. 2% 35. 5% 36. 7% 30. 3% 8. 2% 33. 1% 8. 3% 34. 0% 8. 3% 34. 3% 9. 9% 36. 5% 9. 9% 37. 5% 9. 9% 51. 4% 8. 6% 49. 2% 8. 6% 54. 6% 9. 9% 53. 5% 9. 8%

Development Charges Methodology 2. Identify Servicing needs to accommodate growth p Service specific assessment p Distinguish between DC service and local service 3. Identify servicing needs to accommodate growth; a DC may not provide for: p p p 4 Parkland acquisition Town Halls, Tourism and Cultural Facilities Solid Waste Service Hospitals Restrictions re rolling stock and computer hardware

Development Charges Methodology 4. DC capital needs assessment requires p Consideration of 10 -year average historic level of service p Council intention that needs will be met p Long-term capital and operating cost determination 5. 5 Identify capital costs to provide services to meet the needs “incurred or proposed to be incurred by a municipality or a local board directly or by others on behalf of, and as authorized by, a municipality or local board. ”

Development Charges Methodology 6. Capital costs may include: p p p p 6 Land acquisition (excluding parkland) Capital improvements, acquisitions, leases and construction projects Rolling stock with 7 years + useful life Furniture and equipment for eligible services Library circulation materials Interest costs Studies in connection to the above (including the preparation of a DC background study)

Development Charges Methodology 7. Capital cost assessment must have regard for: p p p 7 Amounts in excess of 10 year historic service calculation Uncommitted excess capacity Grants, subsidies and other contributions Benefit to existing development (2009 estimate based on affordable housing units to be occupied by existing residents, based on waiting lists and priority for assigning units; 70%) Statutory 10% deduction (applicable for Affordable Housing Services)

Development Charges Methodology 8. Net costs then allocated by type of development (i. e. 100% residential) 9. Net costs divided by growth (gross population) to provide the DC charge 10. Spatial applicability of the charge p Uniform City-wide vs. area-specific (i. e. Inside Greenbelt, Outside Greenbelt and Rural) 8

Development Charges Methodology 11. DC bylaw policy considerations: p p p 9 Collection timing (building permit issuance) Statutory and non-statutory DC exemptions Credit policies (s. 38 credits and redevelopment credits) Fee implementation (uniform by use, differentiated by use, exempt developments) Transitional policies (phase-in policies) Indexing policies

City's 2009 DC By-Law (Affordable Housing) In 2009, the City’s 10 -year Affordable Housing Program identified $3. 5 million annually for an additional 100 units per year ($31. 5 million total) p $8. 5 million (27%) identified for recovery from residential development over the forecast period p DC for Affordable Housing Services imposed on a uniform City-wide basis p DC per single detached dwelling on August 31, 2013 was $189/unit p 10

Affordable Housing Survey p Toronto n n 11 Program identifies an addition 200 affordable ownership units and 1, 000 subsidized units over the forecast period at a total cost of $266. 8 million. Service level cap over 10 years of $197. 7 million. $84. 0 million (31% of $266. 8 million) included in the calculation of the charge. $711/sdu current DC.

Affordable Housing Survey p York Region n n 12 Program identifies an addition 1, 000 affordable housing units over the forecast period at a total cost of $232. 8 million. Service level cap over 10 years of $443. 4 million. $26. 7 million (11% of $232. 8 million) included in the calculation of the charge. $347/sdu current DC.

Affordable Housing Survey p Peel Region n n 13 Program identifies a total cost of $180. 1 million. Service level cap over 10 years of $272. 3 million. $55. 5 million (31% of $180. 1 million) included in the calculation of the charge. $716/sdu current DC.

Affordable/Social Housing Survey p Halton Region n n 14 Program identifies an addition 60 -100 units annually, with a mix of construction, ownership and operation. Service level cap for 646 units over 10 years. $17. 4 million (40% of $44. 0 million) included in the calculation of the charge. $392/sdu calculated DC.

Affordable/Social Housing Survey p Hamilton n n 15 Program identifies an addition 3, 000 units over the forecast period at a total cost of $405. 0 million. Service level cap for 494 units over 10 years or $66. 7 million. $13. 9 million (3% of $405. 0 million) included in the calculation of the charge. $427/sdu current DC