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Infrastructure Charges (Capital Cost Contributions)

As defined by HRM, “Capital Cost Contributions (CCC’s) are a one-time fee paid by developers to cover the growth related share of infrastructure that is needed to support development, and are justified under the principle that growth should pay for itself”. Capital Cast Contributions (also referred to as Infrastructure Charges) can be collected from either a specific area or can be collected across a region; and can be collected for various types of services as set out In the Halifax Regional Municipality Charter.

In November 2014 the Province passed an amendment to the Charter which enabled the Municipality to adopt Capital Cost Contributions for a broader range of services that includes parks, playgrounds, trails, bicycle paths, swimming pools, ice arenas, recreation centres, fire departments, and public libraries. Subsequently in January 2015 Council directed staff to develop an approach to collect Infrastructure Charges that considers all services that qualify for CCC’s.

HRM hired Turner Drake (with additional input in technical areas from Metropole, Hemson Consulting and CBCL) to undertake the Infrastructure Charges Review. Phase One (Background Analysis) was completed in Spring 2016. Phase Two has just been completed, with a report to industry representatives taking place on December 1, 2016. Phase Two included evaluating various approaches to calculating ICs, selecting an infrastructure charge methodology, calculating new base charges for all eligible services, and meeting with the HRM Steering Committee and with Development Industry stakeholders.

Phase Three, Economic and Market Analysis, is underway and will be completed in January 2017.  Phase Four, Proposed Charges and Implementation Schedule, should be complete in February 2017.

UDI has been following this fee review closely as it will have a large impact on our members and ultimately upon the affordability of housing in the region. We are currently working on a response to the Phase Two consultation, and an update will be posted shortly.

Our Association has a proactive relationship with various levels of government on numerous issues

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Background

UDI’s membership includes Developers, Municipal Officials, Industry Suppliers, Construction Firms, Architects, Engineers, Surveyors, Designers, Lawyers, Mortgage Brokers, Banks and Real Estate Agents.

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