The Town of Newmarket is welcoming the end to a provincial audit as part of a series of shifts in policy from the Ministry of Housing and Municipal Affairs.
Newmarket was one of six municipalities selected for provincial audit, as part of an information-gathering effort in response to municipal concern over the impact of housing policy on local finances. The province said Dec. 13 that these ongoing audits would be terminated, with the province instead consulting with municipal partners on the impact of its housing legislation. The province also said it would re-examine some of its previous policy changes, which could allow municipalities to collect more revenue from developers.
Newmarket Mayor John Taylor spoke positively about the announcement. He said the municipality was about halfway through the audit, but it was not an audit he supported.
“I’m glad it’s even stopped at this point because it’s work. I don’t think it’s productive,” Taylor said. “We’ve got a lot on our plates … I’m glad to get back to the business at hand, which is managing some pretty tough budgets dealing with a lot of housing initiatives that are online right now and trying to move forward with some key projects in the town.”
The province initially announced Newmarket for an audit, along with Toronto, Peel Region, Mississauga, Caledon and Brampton May 4. This came after municipalities expressed concern about the impact of Bill 23, which reduced how much municipalities could charge developers to fund new infrastructure needed to service homes.
The province hired Ernst and Young LLP to examine Newmarket and the other municipalities back in June.
Instead of the audits, the province said it would consult with its municipal partners on the impacts of its housing legislation.
“We’ll continue to work with our municipal partners to ensure that they have the tools and revenue streams needed to get shovels in the ground,” Minister of Municipal Affairs and Housing Paul Calandra said. “As we do, we need the federal government to be a willing and able partner in supporting our province’s growth.”
Potential changes up for provincial discussion could include the implemented requirement to phase in development charge rates over five years and the framework for refunding developers for application fees, depending on how fast the planning process takes.
Taylor said it seems like a response from the ministry to the concerns that he and other mayors have expressed, and he assumes that could mean significant changes to provincial policy.
“In general, I think it’s a very positive direction,” Taylor said.
Taylor said he hopes the province will also change its mind on removing subsidized housing as an eligible development charge cost. York Region previously estimated the change cost its housing services $109 million over a decade.
“It’s critical for us for the next decade to move forward significantly on subsidized housing,” he said.
The province and municipalities have butted heads over development charges for months, with municipalities saying their reduction means they cannot fund the infrastructure to meet the provincial target of 1.5 million homes in 10 years. In response, the province has created a $1.2 billion over three years to help municipalities address the gap. But the Association of Municipalities of Ontario has said it falls well short of what is necessary, estimating $1 billion annually would be needed.
The province specified that development charge exemptions and reductions for “non-profit, affordable and purpose-built rental homes will remain unchanged.”
Regardless, Taylor said he feels more positive about the potential of the province addressing the funding gap based on the announcement.
“Having our (development charges) potentially being kept more whole — let’s put it that way — I think is incredibly important to our financial picture,” Taylor said.
As part of the announcement, the province has also decided to halt plans to dissolve Peel Region.
