Fact Check: Development charges are killing mid-level housing projects in Ottawa.

Fact Check: Development charges are killing mid-level housing projects in Ottawa.

Published July 13, 2025
by TruthOrFake AI
±
VERDICT
Partially True

# Fact Check: "Development charges are killing mid-level housing projects in Ottawa." ## What We Know Development charges (DCs) are one-time fees lev...

Fact Check: "Development charges are killing mid-level housing projects in Ottawa."

What We Know

Development charges (DCs) are one-time fees levied by municipalities on new residential and non-residential properties to help pay for growth-related capital infrastructure requirements. In Ottawa, these charges have been a topic of contention, particularly among small developers. François Latreille, a developer in Ottawa, claims that the city’s development charges and associated fees make mid-level housing projects financially unviable. He specifically noted that “most rental apartments in Ottawa come from low-rise buildings of four storeys or less,” and that the current fees are halting new projects in this category, effectively making only high-rise developments feasible (Ottawa Citizen).

Latreille's proposed project, which includes a four-storey, 16-unit building, faced estimated costs of around $700,000 in city fees before he could even begin construction. He argues that these fees have increased to the point where they render such mid-level developments unworkable, stating that “if the city’s goal is to generate revenue and encourage new housing development, these fees, as they stand, will result in zero revenue and zero new housing for low-rise development projects like mine” (Ottawa Citizen).

The city, however, maintains that its development fees are standard across the industry and are necessary to fund the processing of applications and the infrastructure needed for new developments (Ottawa Citizen). The city’s Development Review Central manager, Andrew McCreight, suggested that while fees do influence project viability, they do not necessarily kill small developments (Ottawa Citizen).

Analysis

The claim that development charges are "killing" mid-level housing projects in Ottawa is supported by the experiences of developers like Latreille, who provide firsthand accounts of the financial burdens imposed by these fees. His assertion that the costs have escalated to a point where only high-rise developments are viable is echoed by industry representatives, such as Jason Burggraaf from the Greater Ottawa Home Buyers’ Association, who refers to this situation as a disincentive for constructing “the missing middle” housing (Ottawa Citizen).

However, the city’s perspective offers a counterpoint. Officials argue that development charges are necessary for funding essential infrastructure and that the fees are comparable to those in other municipalities (Ottawa Citizen). This suggests that while the fees may pose challenges, they are not unique to Ottawa and are part of a broader framework of municipal funding for growth-related services.

The credibility of the sources varies; the Ottawa Citizen article provides a detailed account of a specific developer's challenges and includes statements from city officials, which adds a layer of reliability. However, the city’s claims about the necessity and standardization of fees may reflect a bias towards maintaining current funding mechanisms, which could downplay the real impacts on small developers (Ottawa Citizen).

Conclusion

The claim that development charges are killing mid-level housing projects in Ottawa is Partially True. While it is evident that these charges significantly impact the feasibility of such developments, particularly for small developers, the city argues that these fees are essential for funding infrastructure and are comparable to those in other regions. Thus, while the charges do create substantial barriers, they are not the sole factor in the decline of mid-level housing projects, as other systemic issues in the housing market also play a role.

Sources

  1. City fees are squeezing small developers out of rental ...
  2. Development Charges
  3. GOHBA: Ottawa's rising Development Charges threaten housing ...
  4. How Development Charges Reshape Canada's Housing Future
  5. Ottawa Home Builders Applaud Ontario's Development ...
  6. CHBA’s Municipal Benchmarking Study Shows Housing ...
  7. Ottawa home builders 'very happy' with promised ...
  8. Provinces 'hold the key' to unlocking homebuilding, new ...

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Fact Check: Development charges are killing mid-level housing projects in Ottawa. | TruthOrFake Blog