Development Charges (DC) Bylaw
This bylaw is a consolidated digital version of the official legal document. It is not an exact reproduction and is for information purposes only.
For any questions related to this bylaw contact 519-747-8785 or devchargedeferrals@waterloo.ca
Bylaw number: 2026-019
Last passed by council: March 23, 2026
A bylaw of the Corporation of the City of Waterloo with respect to development charges.
- Definitions
- Schedule and calculation of development charges
- Applicable lands
- Application of charges
- Requirement to provide local services
- Multiple charges
- Services in lieu
- Development charge redevelopment credits
- Timing of calculation and payment
- Refunds
- Bylaw registration
- Reserve funds
- Bylaw amendment or repeal
- Development charge schedule indexing
- Bylaw administration
- Schedules to the bylaw
- Date bylaw effective
- Existing development charge bylaw repeal
- Severability
- Short title
- Non-binding nature
- Schedule A
- Schedule B
- Schedule C
Whereas section 2(1) of the Development Charges Act, 1997, as amended (the "Act"), enables the council of a municipality to pass bylaws imposing development charges against land to pay for increased capital costs required because of increased needs for services arising from development in the area of the municipality to which the bylaw applies;
And whereas Council provided notice of a public meeting on January 29, 2026 and February 5, 2026, in accordance with section 12 of the Act, and held a public meeting on this same matter on February 23, 2026;
And whereas the Council of The Corporation of the City of Waterloo ("Council"), at its meeting of February 23, 2026, approved Report CORP2026-003, and in so doing adopted the "2026 Development Charges Background Study" dated January 19, 2026, prepared by Hemson Consulting Ltd. and City staff (the "Study");
And whereas Council at that public meeting heard submissions of all persons who applied to be heard and, further, provided a sufficient period of time for the submission of written comments on the Study;
And whereas Council, having considered the use of area specific development charges, resolved on June 16, 2025, via report CORP2025-018, to continue its current practice of imposing development charges on a city-wide basis;
And whereas Council determined by resolution adopted on March 23, 2026, that no further public meetings were required under section 12 of the Act;
And whereas Council, in considering all submissions on the Study and in adopting the Study, directed that development charges be imposed on lands within the city subject to development or redevelopment which would have the effect of substantially increasing the usability of such lands, in accordance with the provisions of this bylaw.
Therefore the Municipal Council of the Corporation of the City of Waterloo enacts as follows:
1.0 Definitions
Terms not otherwise defined herein that are defined in the City's Zoning Bylaw shall have the meaning assigned in the Zoning Bylaw.
(1) "accessory" when used to describe a use, building or structure, means a use, building or structure subordinate and exclusively devoted to the principal use, building or structure situated on the same lot;
(2) "Act" means the Development Charges Act, 1997, S.O. 1997, c.27, and all regulations thereto, as amended from time to time or any successor thereof;
(3) "additional residential unit" means a separate self-contained dwelling unit that is located within a detached building, a freehold semi-detached building, a townhouse building, a townhouse building freehold, or within a coach house;
(4) "affordable residential unit" means a dwelling unit meeting the definition of "affordable residential unit" as set out in the Act;
(5) "attainable residential unit" means a dwelling unit meeting the definition of "attainable residential unit" as set out in the Act;
(6) "amenity area" means an area designed for active and or passive recreation for the exclusive use and benefit of the residents/ tenants in a residential building, such as but not limited to:
(a) outdoor patios;
(b) balconies;
(c) communal indoor recreational spaces (such as gyms);
(d) communal indoor social spaces (such as entertainment rooms);
(e) swimming pools;
(f) outdoor rooftop amenity space (such as rooftop decks and terraces);
Excludes:
(a) lobbies, washrooms, laundries, storage areas, and the like;
(b) circulation spaces, such as hallways, elevators, and the like;
(c) reception areas, management offices, and the like;
(d) parking areas and access driveways;
(e) landscaped open space, excluding outdoor patios;
(f) receiving areas, loading spaces, and the like;
(7) "apartment building" means a residential building containing five (5) or more dwelling units, where each dwelling unit has access to an interior common corridor system with shared exit and entrance at grade. Excludes maisonette building and stacked townhouse building;
(8) "Assessment Act" means the Assessment Act, R.S.O. 1990, c.A.31, and all regulations thereto, as amended from time to time or any successor thereof;
(9) "bed & breakfast establishment" means a dwelling unit where:
(a) guest rooms are rented for the purposes of providing temporary overnight accommodation to the travelling or vacationing public; and
(b) where one or more meals are provided to the guests of the bed & breakfast establishment.
Excludes hotel, group home, guest suite, restaurant and take-out restaurant;
(10) "bedroom" means a habitable room within a dwelling unit that is not:
(a) "common areas", meaning
(i) a living room open to all occupants of the unit
(ii) a dining room open to all occupants of the unit;
(b) areas used for sanitary purposes, such as but not restricted to a washroom;
(c) areas used for cooking purposes, such as but not restricted to a kitchen;
(d) areas occupied by mechanical equipment, such as but not limited to furnaces, hot water heaters, and laundry equipment;
(e) circulation spaces, such as stairways and hallways;
(f) rooms less than six (6) square metres in area where there are built-in cabinets and or closets;
(g) rooms less than seven (7) square metres in area where there are no built-in cabinets and or closets;
(h) a room without a window or alternative source of natural light;
(11) "board of education" means a board defined in s.s.1 (1) of the Education Act R.S.O. 1990 c.E.2, and all regulations thereto, as amended from time to time or any successor thereof;
(12) "building" means any structure used or intended to be used for the shelter, accommodation, or enclosure of persons, animals, or chattels. Any tent, awning, bin, metal container, platform, vessel, or vehicle used for the shelter, accommodation, or enclosure of persons, animals, or chattels shall be deemed a building for the purposes of this bylaw. Excludes a boundary wall or fence;
(13) "Building Code Act" means the Building Code Act, S.O. 1992 c. 23, and all regulations thereto, as amended from time to time or any successor thereof;
(14) "bylaw" means this Development Charge bylaw and any amendments thereto;
(15) "capital cost" means costs incurred or proposed to be incurred by the municipality or a local board thereof directly or under an agreement,
(a) to acquire land or an interest in land, including a leasehold interest;
(b) to improve land;
(c) to acquire, lease, construct or improve buildings and structures;
(d) to acquire, lease, construct or improve facilities including,
(i) rolling stock, with an estimated life of seven (7) years or more;
(ii) furniture and equipment, other than computer equipment;
(iii) materials acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, c.34, and all regulations thereto, as amended from time to time or any successor thereof; and
(e) to undertake studies in connection with any of the matters referred to in clauses (a) to (d);
(f) to complete the development charge background study required under section 10 of the Act;
(g) interest on money borrowed to pay for costs in (a) to (d);
(h) required for the provision of services designated in this bylaw within or outside the municipality;
(16) "change of use" means a change of use authorized by permit pursuant to the Building Code Act or by approval of a description under Section 9 of the Condominium Act;
(17) "Chief Building Official" means the City's Chief Building Official or their designate;
(18) "City" means The Corporation of the City of Waterloo, and where the context so applies, includes its officers, employees, servants, agents and contractors; "the municipality" has a corresponding meaning;
(19) "City Treasurer" means the City's Treasurer and Chief Financial Officer or their designate;
(20) "City's Commissioner of IPPW" means the City's Commissioner of Integrated Planning & Public Works;
(21) "City's Zoning Bylaw" means Bylaw 2018-050 of the City, as amended from time to time or any successor thereof;
(22) "coach house" means an accessory building containing one (1) or more additional dwelling units that is detached from the principal building and located on the same lot as the principal building;
(23) "Condominium Act" means the Condominium Act, 1998 S.O. 1998, c. 19, and all regulations thereto, as amended from time to time and any successor thereof;
(24) "Council" means the municipal council of the City;
(25) "detached building" means a residential building used or intended to be used for up to four (4) dwelling units located on the same lot, and includes a single-detached building as defined herein but does not include a semi-detached building freehold, a townhouse building or a townhouse building freehold;
(26) "development" means the construction, erection or placing of one (1) or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of increasing the size or usability thereof according to one or more of the actions referred to in subsection 2(2) of the Act, and includes redevelopment;
(27) "development charge" means a charge imposed pursuant to this bylaw;
(28) "dwelling" means a building or part thereof designed exclusively for residential occupancy. Excludes hotel;
(29) "dwelling unit" means two (2) or more rooms designed or intended to be occupied by and for the use of an individual or household as a residence with separate kitchen and sanitary (bathroom) facilities that are intended for the use of the dwelling unit only. Includes a guest suite as defined in the City's Zoning Bylaw, as amended from time to time and any successor thereof;
(30) "existing industrial building" means a building or buildings existing on a lot on April 1, 2026 or the first building or buildings constructed on a vacant lot pursuant to site plan approval under section 41 of the Planning Act after April 1, 2026 for which full development charges were paid. The building(s) must be used for, or in connection with,
(a) manufacturing, producing, assembly, processing, storing, warehousing or distributing something, provided that such activities occupy not less than 75% of the gross floor area of the building(s) on the lot;
(b) research or development in connection with manufacturing, producing or processing something which does not constitute more than 25% of the gross floor area of the building(s) on the lot;
(c) retail sales by the manufacturer, producer or processor of something manufactured, produced or processed on the lot, provided that the retail sales are equal to or less than 25% of the gross floor area of the building(s) on the lot where the manufacturing, production or processing takes place; or
(d) office or administrative purposes, if they are:
(i) carried out with respect to a use specified in (a) above;
(ii) located in or attached to the building(s) used for the use specified in (a) above; and
(iii) ancillary and subordinate to the primary industrial use specified in (a) above;
(31) "grade" means the finished ground level of the land, and when used in reference to a building or structure shall mean the finished ground level of the land adjacent to the exterior walls of the building or structure;
(32) "gross floor area" means the total floor area of a building or structure, measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of any partition walls dividing the building or structure from another building or structure, of all floors, including an attic with a clear ceiling height of 2.15 meters for at least 50% of the attic floor area. Gross floor area shall not include:
(a) a room or enclosed area within the building or structure above or below grade that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunications equipment that service the building;
(b) loading facilities above or below grade;
(c) in the case of a residential building, a part of the building or structure that is used for:
(i) residential amenity space,
(ii) the parking of motor vehicles;
(iii) storage or other accessory use;
(d) in the case of a non-residential building, a part of the building or structure that is specifically designated and used for the parking of passenger motor vehicles;
The gross floor area shall include any area which is being used for the repair or for the public sale of vehicles;
(33) "group home" means a dwelling where a household ranging from three (3) to eight (8) residents (excluding staff and the receiving family) live under supervision, and who by reason of their emotional, mental, social, physical condition, or legal status require a group living arrangement for their well-being. Group homes shall be licensed or approved for funding, as required under legislation of the Parliament of Canada or the Province of Ontario;
(34) "home occupation" means a business conducted within a dwelling unit by a permanent resident of the dwelling unit. Home occupations shall be accessory to the principal residential use;
(35) "hotel" means a building or part thereof with no less than six (6) rooms used or designed to be used for temporary overnight accommodation of the travelling or vacationing public, and may include an ancillary restaurant and conference facilities. Excludes bed & breakfast establishment, group home, and lodging house;
(36) "household" means one (1) or more persons living together as a single non-profit, independent housekeeping unit, sharing all areas of the dwelling unit;
(37) "institution" means a not-for-profit organization or foundation devoted to a public, educational, health, social welfare, or charitable cause or program. Includes a public hospital, library, community centre, and government use. Excludes a residence, dwelling units, spiritual use, medical clinic, public school, private school, educational institution, and institutional development. An "educational institution" means a not-for-profit organization, foundation or think tank devoted to education and or educational research, analysis and training;
(38) "institutional development" for the purposes of subsection 9(2) of this bylaw means a building or structure intended for use:
(a) as a long term care home;
(b) as a retirement home within the meaning of subsection 2 (1) of the Retirement Homes Act, 2010;
(c) by any of the following post-secondary institutions for the objects of the institution:
(i) a university in Ontario that receives direct, regular and ongoing operating funding from the Government of Ontario,
(ii) a college or university federated or affiliated with a university described in subclause (i), or
(iii) an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institutes Act, 2017;
(d) as a memorial home, clubhouse or athletic grounds by an Ontario branch of the Royal Canadian Legion; or
(e) as a hospice to provide end of life care;
(39) "live/work unit" means a unit with direct access to grade which contains separate residential and non-residential uses concurrently, and that is both the residence and place of business of the owner;
(40) "local board" has the same meaning as defined in section 1 of the Act;
(41) "local services" means those facilities, works or matters which may be required by the City as a condition of approval under sections 51 or 53 of the Planning Act;
(42) "lodging house" is as defined in the City's Zoning Bylaw, as amended from time to time and any successor thereof;
(43) "lodging room" means a bedroom within a lodging unit which is exclusively used by the resident or residents of the bedroom, and is not normally accessible to persons other than the resident or residents of the bedroom;
(44) "lodging unit" means a living accommodation which does not include the exclusive use of a kitchen or a bathroom;
(45) "long term care home" means any part of a building or structure intended for use as a long term care home, as defined in subsection 2 (1) of the Fixing Long Term Care Home Act, 2021, S.O. 2021, c. 39, Sch. 1, and any regulations thereto, as amended from time to time or any successor thereof;
(46) "lot" means:
(a) A single parcel of land held under one ownership that may be conveyed in compliance with the provisions of the Planning Act;
A lot may or may not be the land shown as a lot on a registered plan of subdivision;
(47) "maisonette building" means a residential building containing four (4) or more dwelling units, where each dwelling unit has at least two (2) separate means of egress. One of the means of egress shall lead to a common corridor, and the other means of egress shall lead directly outside from the dwelling unit to grade;
(48) "Ministry of Training, Colleges and Universities Act" means the Ministry of Training, Colleges and Universities Act, R.S.O. 1990, c. M.19, and all regulations thereto, as amended from time to time or any successor thereof;
(49) "mixed-use building" means a building containing one (1) or more dwelling units and one (1) or more non-residential uses other than:
(a) home occupations;
(b) parking spaces;
(50) "Municipal Act" means the Municipal Act, 2001, S.O. 2001 c.25, and all regulations thereto, as amended from time to time or any successor thereof;
(51) "multiple dwelling" means a dwelling unit within a townhouse building, townhouse building freehold, maisonette building, or stacked townhouse building;
(52) "non-profit housing development" shall have the meaning set out in Section 4.2(1) of the Act;
(53) "non-residential use" means any commercial, industrial, institution or other use not included in the definition of a residential use, and "non-residential" has a corresponding meaning;
(54) "Official Plan" means the City's Official Plan, as amended from time to time or any successor thereof;
(55) "Ontario Colleges of Applied Arts and Technology Act" means the Ontario Colleges of Applied Arts and Technology Act, 2002, S.O. 2002, c. 8, Sched. F, and all regulations thereto, as amended from time to time or any successor thereof;
(56) "owner" means the owner of land or a person or entity who has made a complete application to develop lands upon which a development charge is imposed;
(57) "Planning Act" means the Planning Act, R.S.O. 1990, c.P.13, and all regulations thereto, as amended from time to time or any successor thereof;
(58) "Public Hospitals Act" means the Public Hospitals Act, R.S.O. 1990, c.P. 40, and all regulations thereto, as amended from time to time or any successor thereof;
(59) "redevelopment" means the redevelopment of a lot that was previously developed, and includes:
(a) the development of lands following the removal of one or more buildings or structures from such land;
(b) the substantial renovation of a building or structure;
(c) a change of use;
(d) an increase in density;
(60) "Region" means The Regional Municipality of Waterloo, and where the context so applies, includes its officers, employees, servants, agents and contractors;
(61) "regulation" means Ontario Regulation 82/98 under the Development Charges Act, as amended from time to time or any successor thereof;
(62) "rental housing development" means development of a building or structure with four (4) or more residential dwelling units all of which are intended for use as rented residential premises. Does not include a building or structure where there are less than four (4) dwelling units on a lot;
(63) "residential use" means any building or structure or a part thereof used, designed or intended to be used as a dwelling unit. Excludes hospitals, hotels, group homes, or long term care home, and "residential" has a corresponding meaning;
(64) "semi-detached building freehold" means a residential building divided into two (2) dwelling units by a vertical continuous common wall without opening from basement to roof, where each dwelling unit is on a separate lot. Each lot shall abut a highway;
(65) "services" (or "service") means those services set out in Schedule A to this bylaw;
(66) "services in lieu" means those services specified in an agreement made under section 7 of this bylaw;
(67) "servicing agreement" means:
(a) an agreement between an owner and the City in relation to the provision of engineered services as outlined in Schedule A2 of this bylaw to specified lands within the city;
(b) an agreement between the City and an adjacent municipality pursuant to section 20 of the Municipal Act, including cross-border servicing agreements;
(68) "single detached building" means a detached building used or intended to be used as one (1) dwelling unit. Excludes coach house;
(69) "spiritual use" means a building or part thereof used by a religious organization as a place of worship and for religious services, ceremonies, and rites. Includes subordinate and incidental accessory uses related to the spiritual use, such as:
(a) a spiritual leader's residence
(b) assembly areas for meditation, reflection, social gathering, and the like
(c) faith-based instruction and teaching
(d) offices for the administration of the religious organization
(e) library for the religious organization
(f) gymnasium.
For clarity, a religious organization means a corporation or an association that is charitable according to the laws of the Province of Ontario and organized for the advancement of a religion and that is exempt from taxation as a place of worship under section 3 of the Assessment Act;
(70) "stacked townhouse building" is as defined in the City's Zoning Bylaw, as amended from time to time and any successor thereof;
(71) "townhouse building" is as defined in the City's Zoning Bylaw, as amended from time to time and any successor thereof;
(72) "townhouse building freehold" means a residential building containing three (3) to six (6) dwelling units (or such higher amount as permitted by site specific zoning or minor variance) which:
(a) are separated vertically by a continuous common wall without opening from basement to roof;
(b) are under a connected roof;
(c) have a separate entrance at grade;
(d) have connected exterior walls;
(e) where each dwelling unit is on a separate lot;
(f) each lot shall abut a highway.
2.0 Schedule and calculation of development charges
(1) Council hereby determines that the development of land, within the City, unless otherwise specified in this bylaw, will increase the need for the services referenced in Schedule A.
(2) Subject to section 4 and the other provisions of this bylaw, development charges against land shall be calculated and collected in accordance with the base rates set out in Schedule B and Schedule C to this bylaw, which relate to the services set out in Schedule A.
(3) The development charge with respect to the use of any land, or the erection, alteration, enlargement, reconstruction, location or change of use of any building or structure or portion thereof, shall be calculated as the aggregate of the following:
(a) Development charges shall be imposed on all residential uses, including a detached dwelling unit accessory to a non-residential development and the residential component of a mixed-use building, including the residential component of a live/work unit, according to the number and type of dwelling units on the lands as set out in Schedule B and Schedule C; and
(b) Development charges shall be imposed on all non-residential uses and, in the case of a mixed-used building, on the non-residential component of the mixed-use building, including the non-residential component of a live/work unit, according to the type and gross floor area of the non-residential component as set out in Schedule B and Schedule C.
3.0 Applicable lands
(1) Subject to subsections (2) through to (9), this bylaw applies to all lands in the City of Waterloo, whether or not the lands or use is exempt from taxation under section 3 of the Assessment Act.
(2) This bylaw shall not apply to land that is owned by and used for the purposes of:
(a) a board of education as defined in the Education Act;
(b) any municipality or any local board of such municipality;
(c) the Crown in right of Ontario;
(d) the Crown in right of Canada;
(e) publicly-assisted universities as defined in the Ministry of Training, Colleges and Universities Act, including colleges of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, if the development or redevelopment in respect of which development charges would otherwise be payable is intended to be occupied and used for the objects of the university or college, except for:
(i) the portion of non-residential uses on university or college lands that includes a third party commercial business.
(3) The following uses are exempt from development charges under this bylaw:
(a) a temporary use permitted under a zoning bylaw amendment enacted under section 39 of the Planning Act;
(b) the temporary use of a construction trailer in connection with the construction of the development; or
(c) the erection of a building without foundation as defined in the Building Code Act for a period not exceeding six (6) consecutive months, provided that:
(i) the status of the building or structure as a temporary building or structure is maintained in accordance with the provisions of this subsection; and
(ii) upon application being made for the issuance of a permit under the Building Code Act, in relation to a temporary building or structure on land to which a development charge applies, the City may require that the owner submit security satisfactory to the City's Commissioner of IPPW, to be realized upon and in the event that the building or structure is present on the subject lands for a continuous period exceeding six (6) months, and development charges thereby become payable.
(d) an accessory building, excluding a coach house, provided that the accessory building is compliant with the City's Zoning Bylaw, including section 3.A.1 of the City's Zoning Bylaw, as amended from time to time or any successor thereof.
(4) The following actions are exempt from development charges under this bylaw:
(a) the enlargement of an existing dwelling unit in accordance with subsection 2(3) of the Act;
(b) the creation of additional residential units in existing rental residential buildings up to the maximums permitted in and in accordance with subsection 2(3.1) of the Act;
(c) the creation of additional residential units beyond the initial dwelling unit in new and existing residential buildings up to the maximums permitted in and in accordance with subsections 2(3.2) and 2(3.3) of the Act.
For clarity, existing refers to the dwelling unit or building prior to the first enlargement.
(5) Affordable residential units and attainable residential units are exempt from development charges under this bylaw in accordance with, and subject to, the criteria and conditions contained in section 4.1 of the Act and the definitions in the Act.
(6) Non-profit housing development is exempt from development charges under this bylaw in accordance with, and subject to, the criteria and conditions contained in section 4.2 of the Act.
(7) Affordable residential units, as defined herein, to be included in a development or redevelopment pursuant to inclusionary zoning requirements of the City's Zoning Bylaw are exempt from development charges under this bylaw, in accordance with and subject to, the criteria and conditions contained in section 4.3 of the Act.
(8) Development of any part of a building or structure intended for use as a long term care home is exempt from development charges under this bylaw, in accordance with and subject to, the criteria and conditions in section 4.4 of the Act.
(9) Existing Industrial Building Enlargements are exempt from development charges under this bylaw as follows:
(a) For the enlargement of an existing industrial building up to a maximum of fifty percent (50%) of the industrial building's existing gross floor area prior to the first enlargement, in accordance with section 4 of the Act and section 1 of the regulation.
(b) If a lot containing an existing industrial building with an enlargement(s) for which an exemption was granted under this section of the bylaw is subdivided, any further exemption under (a) above, if any:
(i) shall apply to the lot(s) containing the existing industrial building and/or enlargement(s);
(ii) shall not apply to a vacant lot created by the division of the lands.
4.0 Application of charges
(1) Per subsection 2(2) of the Act, except as otherwise provided in this bylaw, development charges shall apply to, and shall be calculated and collected in accordance with the provisions of this bylaw on land to be developed or redeveloped for residential and non-residential use purposes that requires:
(a) the passing of a zoning bylaw or an amendment thereto under section 34 of the Planning Act;
(b) the approval of a minor variance under section 45 of the Planning Act;
(c) a conveyance of land to which a bylaw passed under subsection 50(7) of the Planning Act applies;
(d) the approval of a plan of subdivision under section 51 of the Planning Act;
(e) a consent under section 53 of the Planning Act;
(f) the approval of a description under section 9 of the Condominium Act; or
(g) the issuing of a permit under the Building Code Act, in relation to a building or structure.
(2) Subsection (1) shall not apply in respect of the provision of local services or the installation of local connections to local services.
5.0 Requirement to provide local services
Nothing in this bylaw prevents Council from requiring the provision of local services with respect to any lands subject to development charges under this bylaw.
6.0 Multiple charges
(1) Where two or more of the actions or approvals described in subsection 4(1) of this bylaw are required for the development of land to which a development charge applies, except as specified in subsections (2) and (3) below, only one development charge shall be calculated and collected in accordance with the provisions of this bylaw.
(2) Notwithstanding subsection (1) above, if two or more of the actions or approvals described in subsection 4(1) of this bylaw occur at different times, and if the subsequent action or approval (including any change of use) has the effect of changing the inputs of the calculated development charge, an additional development charge shall be calculated and collected in accordance with the provisions of this bylaw.
(3) Notwithstanding subsection (1) above, in the case of phasing of a large-scale development where multiple building permits are required, development charges shall be calculated as follows:
(a) For a development that is one building under the Ontario Building Code that consists of two or more phases that will be constructed concurrently under the same building permit, the full development charge shall be calculated upon the first building permit being issued, and payable in accordance with Section 9 of this bylaw, provided subsection (2) above does not apply. If subsequent building permits are issued that have the effect of changing the inputs of the calculated development charge, an additional development charge shall be calculated and collected in accordance with the provisions of this bylaw.
(b) For a development that is one building under the Ontario Building Code that consists of two or more phases that will not be constructed concurrently and are anticipated to be completed in different years under separate building permits, each phase of the development is deemed to be a separate development for the purposes of this bylaw.
(c) For a development that is one building under the Ontario Building Code that consists of two or more phases that will not be constructed concurrently and are anticipated to be completed in the same year under separate building permits, each phase of the development is deemed to be a separate development for the purposes of this bylaw.
7.0 Services in lieu
(1) Council may authorize an owner, through an agreement under section 38 of the Act, to substitute such part of the development charge applicable to the owner's development as may be specified in the agreement, by the provision at the sole expense of the owner, of services in lieu. Such agreement shall further specify that where the owner provides services in lieu as specified in the agreement, Council shall give to the owner a credit, without interest, against the development charge in accordance with the agreement provisions and the provisions of section 39 of the Act, equal to the reasonable cost to the owner providing the services in lieu, as determined by the City's Commissioner of IPPW. In no case shall the agreement provide for a credit which exceeds the total development charge payable by an owner to the City in respect of the development to which the agreement relates as determined by the City.
(2) In any agreement under subsection (1), Council may also give a further credit to the owner equal to the reasonable cost of providing services in addition to, or of a greater size or capacity, than would be required under this bylaw.
(3) The credit provided for in subsection (2) shall not be charged to the reserve funds prescribed under section 12 of this bylaw.
(4) Any unused credit may be applied, upon proof satisfactory to the City's Chief Building Official, to any subsequent development charge payable in respect to the same lands and may be transferable to subsequent owners thereof.
8.0 Development charge redevelopment credits
(1) Subject to the provisions of this section, where any redevelopment of land replaces or changes (including any change of use) a former development or an existing development, and in the case of demolition a building permit has been issued within:
(a) seven (7) years from the date of demolition permit issuance for a development that only contained a residential use(s); or seven (7) years from the date of the actual demolition of a building or structure which was lawfully non-conforming and involuntarily destroyed or damaged, in whole or in part, by fire or natural disaster; or
(b) ten (10) years from the date of demolition permit issuance for a development that only contained a non-residential use(s) or was a mixed-use building; or ten (10) years from the date of the actual demolition of a building or structure which was lawfully non-conforming and involuntarily destroyed or damaged, in whole or in part, by fire or natural disaster;
the development charge applicable to the redevelopment shall be reduced by a redevelopment allowance, without interest, as determined by the City's Commissioner of IPPW and the Chief Building Official for such units or gross floor area as the case may be, and not to exceed an amount equal to the total of:
(c) for a residential use(s) or the residential portion of a mixed-use building, the number and types of legally established dwelling units or lodging units in the former or existing development; and
(d) for a non-residential use(s) or the non-residential portion of a mixed-use building, the legally established gross floor area of all non-residential use components in the former or existing development.
(2) No redevelopment allowance shall be made in excess of the development charge payable for a redevelopment.
(3) Notwithstanding subsection (2) above, where any redevelopment of land replaces or changes (including any change of use) a former development or an existing development, and in the case of demolition, a building permit has been issued within the time periods specified in subsection (1) above, the redevelopment allowance in excess of the development charge payable may be carried forward and applied, upon proof satisfactory to the City's Commissioner of IPPW and the Chief Building Official, to any subsequent development charge payable in respect to future development on the same lands for a period of up to ten (10) years.
9.0 Timing of calculation and payment
(1) Development charges shall be calculated on the following dates:
(a) as of the date when an application for an approval of development in a site plan control area under subsection 41 (4) of the Planning Act was made, and deemed complete, by the City;
(b) if clause (a) does not apply, as of the date when an application for an amendment to a bylaw passed under section 34 of the Planning Act was made, and deemed complete, by the City;
(c) if neither clause (a) or (b) applies, as of the date that a building permit is issued for the development or redevelopment on the lands to which a development charge applies, in accordance with Section 26 of the Act and Section 6 of this bylaw, or in a manner or at a time otherwise lawfully agreed upon under the Act or specified in this bylaw.
If a development was the subject of more than one application referred to in clause (a) or (b) above, the later application is deemed to be the applicable application for the purposes of the calculation date.
If, on the date the first building permit is issued for the development, more than 18 months (or as otherwise stipulated by the Act) has elapsed since the application referred to in clause (a) or (b) was approved, then clause (a) and (b) above do not apply, and development charges shall be calculated as outlined in clause (c) above.
Clauses (a) and (b) above do not apply to a development charge if the total amount of all charges, including any interest charged as permitted under the Act, that are payable in accordance with either of those clauses exceeds the total amount of all charges that would be payable had clause (c) above been applied.
(2) Except where exempt pursuant to this bylaw, development charges shall be paid in lawful money of Canada or by provision of services as may be agreed upon by the City, or by credit granted by the Act, on the following dates:
(a) For rental housing development and institutional development:
(i) shall be paid in equal annual instalments beginning on the earlier of the date of the issuance of a permit under the Building Code Act authorizing occupation of the building and the date the building is first occupied, and continuing on the following five (5) anniversaries of that date.
(b) For any residential use that is not rental housing development:
(i) shall be paid in full on the earlier of the date of the issuance of a permit under the Building Code Act authorizing occupation of the building or the date the building is first occupied.
(c) For any non-residential use that is not institutional development:
(i) shall be paid in full upon a building permit being issued for the development.
(d) Notwithstanding clauses (a), (b), and (c) above, in cases where a building permit is not required under the Building Code Act, the development charge shall be paid at the action or approval described in subsection 4(1) of this bylaw.
A person required to pay a development charge referred to in clauses (a) or (b) above shall, unless the occupation of the building in respect of which the development charge is required is authorized by a permit under the Building Code Act, notify the City Treasurer within the prescribed time of the building first being occupied as outlined in the Act. Failure to comply with any required notice will cause the development charge, including any interest payable in accordance with the Act, being due and payable immediately.
A person required to pay a development charge referred to in clause (a) or (b) above may pay the charge before it is otherwise payable even in the absence of an agreement under section 27, provided the building permit in respect of the development or redevelopment, as the case may be, has been issued.
(3) In the case of rental housing development, the amount determined under subsection (1) above for a dwelling unit intended for use as a rented residential premises shall be reduced by the following:
(a) dwelling unit with three or more bedrooms shall be reduced by 25 percent (25%);
(b) dwelling unit with two bedrooms shall be reduced by 20 percent (20%);
(c) dwelling unit with 1 bedroom shall be reduced by 15 percent (15%).
The City may require the owner of rental housing development to satisfy the City that all dwelling units are intended for use as rented residential premises in determining these reductions. The owner of rental housing development shall, at the request of the City at anytime, provide proof satisfactory to the City that the development continues to qualify as rental housing development as defined in this bylaw.
(4) Where development charges apply to lands in relation to which a building permit is required for non-residential development, or the non-residential component of a mixed-used building, the building permit shall not be issued until the development charge has been paid for the non-residential space.
(5) Notwithstanding subsections (1) and (2) above, Council may agree to enter into an agreement with an owner under section 27 of the Act to provide for the development charge payment in full before or after the payment would otherwise be due under the Act.
(6) Where any development charge, or part thereof, remains unpaid after the payment date specified in an agreement entered into pursuant to subsection (5) above, the amount that is unpaid shall be added to the tax roll and shall be collected in the same manner as taxes under section 446 of the Municipal Act.
(7) Where any unpaid development charge is collected as taxes under subsection (6) above, the monies so collected shall be credited to the development charge reserve fund or funds referred to in subsection 12(1).
(8) In the event that a development charge is calculated based on incomplete, false or misleading information provided by an owner, the City may re-calculate such development charge based on correct information and collect any further amount owing in accordance with the provisions of this bylaw.
10.0 Refunds
Where development charges have been paid in relation to a building permit, and that building permit is subsequently cancelled or revoked by the Chief Building Official under the Building Code Act for the building or structure within seven (7) years of the issuance of the building permit without development having been commenced, for the purposes of this bylaw the building permit shall be deemed never to have been issued, and the amount of the development charges paid shall be refunded to the payor without interest.
11.0 Bylaw registration
This bylaw or a certified copy of this bylaw may be registered against the title to any land to which this bylaw applies.
12.0 Reserve funds
(1) Monies received from payment of development charges shall be maintained in a separate reserve fund for each service designated in Schedule A, plus interest earned thereon.
(2) Monies received for the payment of development charges shall be used only in accordance with the provisions of section 35 of the Act.
(3) The City Treasurer shall, on or before June 30 of each year, give the Council a financial statement in respect of the reserve funds established under this bylaw for the prior year, containing information in accordance with the provisions of the Act.
13.0 Bylaw amendment or repeal
(1) Where this bylaw or any development charge prescribed thereunder is amended or repealed by order of the Ontario Land Tribunal or by resolution of Council, the City Treasurer shall calculate forthwith the amount of any overpayment to be refunded as a result of said amendment or repeal.
(2) Refunds that are required to be paid under subsection (1) above shall be paid to the registered owner of the land on the date on which the refund is paid.
(3) Refunds that are required to be paid under subsection (1) above shall be paid with interest to be calculated as follows:
(a) interest shall be calculated from the day on which the overpayment was collected to the day on which the refund is paid;
(b) the refund shall include the interest owed under this section; and
(c) interest shall be paid at the Bank of Canada rate in effect on the day this bylaw comes into force, updated on the first business day of every January, April, July and October thereafter for the life of this bylaw.
14.0 Development charge schedule indexing
The development charges referred to in Schedule B and Schedule C shall be indexed without amendment to this bylaw on December 1 of each calendar year by the second quarter Statistics Canada Non-residential Building Construction Price Index for Toronto, commencing December 1, 2026, in accordance with section 5(1) of the Act and Section 7 of the Regulation.
15.0 Bylaw administration
This bylaw shall be administered by the City Treasurer.
16.0 Schedules to the bylaw
The following schedules to this bylaw form an integral part of this bylaw:
Schedule A - Designated Municipal Services
Schedule B - Schedule of Development Charges for General Services
Schedule C - Schedule of Development Charges for Engineered Services
17.0 Date bylaw effective
This bylaw shall come into force and effect on April 1, 2026. For greater clarity, the development charges set out in this bylaw shall apply to any building permit issued on or after April 1, 2026. If a building permit is not required for the development, the development charges set out in this bylaw shall apply to any other action or approval described in section 4(1) on or after April 1, 2026.
18.0 Existing development charge bylaw repeal
Bylaw 2019-064 is repealed effective the date that this bylaw comes into force and effect.
19.0 Severability
(1) If, for any reason, any provision, section, subsection or paragraph of this bylaw is held to be invalid by the Ontario Land Tribunal or a Court of competent jurisdiction, it is hereby declared to be the intention of Council that all of the remainder of this bylaw shall continue in full force and effect until repealed, re-enacted or amended, in whole or in part or dealt with in any other way.
(2) Subject to the provisions of the Act, in the event of a conflict between the provisions of this bylaw and any agreement, including a servicing agreement, between the City and the owner with respect to land for which development charges apply under this bylaw, the provisions of such agreement prevail to the extent of the conflict.
(3) In the event of a conflict between this bylaw and the Act, the Act shall prevail to the extent of the conflict.
(4) For greater certainty, a conflict shall not apply pursuant to subsection (3) above where a provision in this bylaw is allowed to remain in effect for a prescribed period of time pursuant to the Act.
20.0 Short title
This bylaw may be cited as the "Waterloo Development Charge Bylaw #2026-09"
21.0 Non-binding nature
Nothing in this bylaw shall be construed so as to commit or require the City or its Council to authorize or proceed with any specific capital project at any specific time.
Read a first, second and third time and enacted this 23rd day of March, 2026.
22.0 Schedule A - Designated municipal services under this bylaw
A-1 General services:
- Library Services
- Protective Services
- Parks and Major Indoor Recreation Facilities
- Development-Related Studies
- Land Acquisition
A-2 Engineered services:
- Roads and Related Services
- Water Supply and Wastewater
- Stormwater Drainage and Control Services
23.0 Schedule B - Development charges for general services
| Service | Residential charge by unit type |
Lodging house per bedroom | Non-residential charge per square foot | Non-residential charge per square metre | |||
|---|---|---|---|---|---|---|---|
| Singles and Semis | Apartments | Multiples | $433 | $0 | $0 | ||
| 3 Bedrooms or less | 4 or more bedrooms | ||||||
| Library services | $1,477 | $868 | $1,807 | $1,052 | |||
| Protective services | $872 | $513 | $1,067 | $621 | $256 | $0.56 | $6.02 |
| Parks and major indoor recreation facilities | $11,522 | $6,774 | $14,097 | $8,210 | $3,379 | $0 | $0 |
| Development related studies | $682 | $401 | $835 | $486 | $200 | $0.44 | $4.71 |
| Land Acquisition | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Subtotal general services | $14,553 | $8,556 | $17,806 | $10,369 | $4,268 | $1.00 | $10.73 |
24.0 Schedule C - development charges for engineered services
| Service | Residential charge by unit type |
Lodging house per bedroom | Non-residential charge per square foot | Non-residential charge per square metre | |||
|---|---|---|---|---|---|---|---|
| Singles and Semis | Apartments | Multiple | $1,502 | $3.26 | $35. 12 | ||
| 3 Bedrooms or less | 4 or more bedrooms | ||||||
| Roads and related services | $5,121 | $3,011 | $6,266 | $3,649 | |||
| Water supply and wastewater | $4,162 | $2,447 | $5,093 | $2,966 | $ 1,221 | $2.65 | $28.55 |
| Stormwater drainage and control services | $1,365 | $802 | $1,670 | $972 | $400 | $0.87 | $9.36 |
| Subtotal engineering services | $10,648 | $6,260 | $13,029 | $7,587 | $3,123 | $6.78 | $73.03 |