At May's Ajax Council meeting, members of council voted to approve the Development Charge Interest Policy developed by staff.
The full policy can be viewed here.
The policy has been created in response to Bill 108: More Homes More Choice Act - Status Update. This policy addresses two parts of Bill 108: the provision that changes the date at which the development charge is calculated; and the provisions that require municipalities to defer collection of development charges over a period of 5 to 20 years for rental housing, institutional development and non-profit housing developments.
The Town has concerns that these provisions will result in a shortfall in the DC collected as compared to the cost of the capital infrastructure required.
The proposed solution to recover that revenue is to implement an interest charge. This charge will be the Bank of Canada Rate plus 2%.