Development Charges

Development charges are one-time fees collected from developers and builders by municipalities at the time a building permit is issued.

The Town of Ajax collects development charges on behalf of the Town, the Region of Durham (including GO Transit) and Durham area school boards.

The fees collected are used to pay for a share of growth-related capital projects such as infrastructure required for Transportation, Parks and Recreation, Library Services and Fire Services. Fees are also used to pay for a share of additional vehicles and equipment required to deliver these services as well as growth-related administrative studies.

Effective January 1, 2020 the Province amended the Development Charges Act, 1997 changing the rate at which development charges are calculated and the timing of collection for specified developments.

Timing of Development Charge Collection

Development charges are collected on the date that the first building permit is issued for all developments.

Exception: For specified institutional, non-profit housing and rental housing developments as defined in O. Reg. 454/19, the Town and Region development charges are to be paid in equal instalments, beginning upon first occupancy of the building.

Board of Education Development charges are due at time of Building permit issuance for all applicable development types.

Development Charge Rates

Development charges are calculated at the current rate in effect on the date that the first building permit is issued for a development.

Exception: If a site plan or zoning amendment application was submitted to the Town after January 1, 2020 the development charge rates are locked-in on the date a complete application is received by the Town. The locked-in rates are in effect for
two years after the approval of such application.

Please refer to the table below for guidance on the applicable Development Charges (DC) rate :

	DC Rates to Use	DC Rates to Use
Situation	Town of Ajax and Region of Durham	Board of Education
A complete application for site plan or zoning amendment was made prior to January 1, 2020	DC rate in effect at permit issuance	DC rate in effect at permit issuance
A complete application for site plan or zoning amendment was made on or after January 1, 2020	DC rate in effect at application date plus interest to month of permit issuance*	DC rate in effect at permit issuance
The development is not subject to a site plan or zoning amendment application	DC rate in effect at permit issuance	DC rate in effect at permit issuance

*Interest will be calculated on the Town of Ajax development charges from the date of application to the first day of the month in which a building permit is issued. The Region of Durham currently does not charge interest.

Download the Development Charge Rates as of September 18, 2022

For your convenience, Historical DC rates since January 1, 2020 can be downloaded. Should there be a deviation from any posted rate, the rate in the brochure will be deemed to be the correct rate.

TOWN OF AJAX SUMMARY OF DEVELOPMENT CHARGES
As of September 18, 2022
Residential Type	Town of Ajax	Board of Education	Region of Durham (Including GO Transit fee)	Total
RESIDENTIAL
Single Detached Dwelling	$34,202	$5,135	$41,528	$80,865
Semi-Detached Dwelling	$34,202	$5,135	$41,528	$80,865
Apartment Dwellings, two bedrooms or more	$16,455	$5,135	$24,117	$45,707
Apartment Dwellings, less than two bedrooms	$10,340	$5,135	$15,640	$31,115
Other Dwellings (townhouses, links)	$27,007	$5,135	$33,401 (medium density multiples)	$65,543
NON-RESIDENTIAL (PER SQ. FT OF GROSS FLOOR AREA)
Commercial	$8.43	$0.00	$24.45	$32.88
Industrial	$8.43	$0.00	$13.30	$21.73
Institutional	$8.43	$0.00	$12.86	$21.29
NON-RESIDENTIAL (PER SQ. METRE OF GROSS FLOOR AREA)
Commercial	$90.73	$0.00	$263.18	$353.91
Industrial	$90.73	$0.00	$143.16	$233.89
Institutional	$90.73	$0.00	$138.42	$229.15

Development Charges Brochures

Town of Ajax Development Charge Brochures under By-law 50-2018:

Town of Ajax Development Charge Brochures under DC By-law 50-2018, (amended by By-law 55-2020), as approved on December 14, 2020:

Development Charge Interest

Town of Ajax policy COR 148 - Development Charge Interest Policy governs the charging of interest on development charges that are eligible for instalment payments or rate freeze under sections 26.1 and 26.2 of the Development Charges Act, 1997 (DCA).

Bill 23 imposes limitations on maximum interest rates charged for any rate adjustments implemented on or after April 1, 2022. These limitations will shortly be reflected in the above noted Town policy.

The interest rate applied will be the average bank prime rate plus 1% on October 15 for a January 1 interest adjustment date and April 15 for a July 1 interest adjustment date. The interest rate applied will be the interest rate in effect on:

For applications eligible for installment payments under Section 26.1 of the DCA - the date the development charges would have been payable under the DCA for applications eligible for installment payments under Section 26.1 of the DCA, or
For applications eligible for development charge freezing under section 26.2 of the DCA - the date an application for an approval of development was made for those developments requiring Zoning or Site Plan approvals.

Situation

Interest will be calculated as follows:

Frozen Development Charges

(Section 26.2 of DCA)

from date of site plan or zoning amendment
application to the first day of the month in which a
building permit is issued

Deferred Development Charges

(Section 26.1 of DCA)

from date of building permit issuance to the date of
final instalment payment

The applicable interest rates are as follows:

Effective Date	Average Bank Prime Rate	Town of Ajax Interest Rate
January 1, 2023	5.45%	6.45%
July 1, 2022*	2.70%	3.70%

* For interest calculated on building permits issued on or after November 28, 2022

Effective December 31, 2019 to November 27, 2022, interest rate applied has been the Bank of Canada Bank Rate plus 2% as at December 31st or June 30th

The applicable interest rates were as follows:

Effective Date	Bank of Canada Bank Rate	Town of Ajax Interest Rate
June 30, 2022*	1.75%	3.75%
December 31, 2021	0.50%	2.50%
June 30,2021	0.50%	2.50%
December 31, 2020	0.50%	2.50%
June 30, 2020	0.50%	2.50%
December 31, 2019	2.00%	4.00%