1. City of Ottawa 2014 Development Charges Background Study Affordable Housing July 8, 2014

2. Purpose  To recover the capital costs associated with residential and non-residential growth within the municipality  The capital costs are in addition to what costs would normally be constructed as part of a subdivision (i.e. internal roads, sewers, watermains, roads, sidewalks, streetlights, etc.)  Municipalities are empowered to impose these charges via the Development Charges Act (DCA) 1

3. Development Charges Methodology 2

4. 1. Identify amount, type and location of growth  Affordable Housing Services maximum 10-year forecast period  Charges imposed on residential development types 3 Dwelling UnitsPopulationDwelling Unit GrowthPopulation Growth 2014202420312014202420312014-20242014-20312014-20242014-2031 Inside Greenbelt246,011270,024286,819529,498570,377598,15524,01440,80840,88068,658 Urban Outside Greenbelt121,324152,152168,927325,753388,588425,71130,82847,60362,83599,958 Rural32,99538,17341,29593,631105,090111,9745,1788,30011,46018,343 City of Ottawa400,330460,349497,041948,8811,064,0561,135,84060,01996,711115,175186,959 % Inside Greenbelt61.5%58.7%57.7%55.8%53.6%52.7%40.0%42.2%35.5%36.7% % Urban Outside Greenbelt30.3%33.1%34.0%34.3%36.5%37.5%51.4%49.2%54.6%53.5% % Rural8.2%8.3% 9.9% 8.6% 9.9%9.8%

5. Development Charges Methodology 2. Identify Servicing needs to accommodate growth  Service specific assessment  Distinguish between DC service and local service 3. Identify servicing needs to accommodate growth; a DC may not provide for:  Parkland acquisition  Town Halls, Tourism and Cultural Facilities  Solid Waste Service  Hospitals  Restrictions re rolling stock and computer hardware 4

6. Development Charges Methodology 4. DC capital needs assessment requires  Consideration of 10-year average historic level of service  Council intention that needs will be met  Long-term capital and operating cost determination 5. Identify capital costs to provide services to meet the needs “incurred or proposed to be incurred by a municipality or a local board directly or by others on behalf of, and as authorized by, a municipality or local board.” 5

7. Development Charges Methodology 6. Capital costs may include:  Land acquisition (excluding parkland)  Capital improvements, acquisitions, leases and construction projects  Rolling stock with 7 years + useful life  Furniture and equipment for eligible services  Library circulation materials  Interest costs  Studies in connection to the above (including the preparation of a DC background study) 6

8. Development Charges Methodology 7. Capital cost assessment must have regard for:  Amounts in excess of 10 year historic service calculation  Uncommitted excess capacity  Grants, subsidies and other contributions  Benefit to existing development (2009 estimate based on affordable housing units to be occupied by existing residents, based on waiting lists and priority for assigning units; 70%)  Statutory 10% deduction (applicable for Affordable Housing Services) 7

9. Development Charges Methodology 8. Net costs then allocated by type of development (i.e. 100% residential) 9. Net costs divided by growth (gross population) to provide the DC charge 10. Spatial applicability of the charge  Uniform City-wide vs. area-specific (i.e. Inside Greenbelt, Outside Greenbelt and Rural) 8

10. Development Charges Methodology 11. DC bylaw policy considerations:  Collection timing (building permit issuance)  Statutory and non-statutory DC exemptions  Credit policies (s.38 credits and redevelopment credits)  Fee implementation (uniform by use, differentiated by use, exempt developments)  Transitional policies (phase-in policies)  Indexing policies 9

11. City's 2009 DC By-Law (Affordable Housing)  In 2009, the City’s 10-year Affordable Housing Program identified $3.5 million annually for an additional 100 units per year ($31.5 million total)  $8.5 million (27%) identified for recovery from residential development over the forecast period  DC for Affordable Housing Services imposed on a uniform City-wide basis  DC per single detached dwelling on August 31, 2013 was $189/unit 10

12. Affordable Housing Survey  Toronto Program identifies an addition 200 affordable ownership units and 1,000 subsidized units over the forecast period at a total cost of $266.8 million. Service level cap over 10 years of $197.7 million. $84.0 million (31% of $266.8 million) included in the calculation of the charge. $711/sdu current DC. 11

13. Affordable Housing Survey  York Region Program identifies an addition 1,000 affordable housing units over the forecast period at a total cost of $232.8 million. Service level cap over 10 years of $443.4 million. $26.7 million (11% of $232.8 million) included in the calculation of the charge. $347/sdu current DC. 12

14. Affordable Housing Survey  Peel Region Program identifies a total cost of $180.1 million. Service level cap over 10 years of $272.3 million. $55.5 million (31% of $180.1 million) included in the calculation of the charge. $716/sdu current DC. 13

15. Affordable/Social Housing Survey  Halton Region Program identifies an addition 60-100 units annually, with a mix of construction, ownership and operation. Service level cap for 646 units over 10 years. $17.4 million (40% of $44.0 million) included in the calculation of the charge. $392/sdu calculated DC. 14

16. Affordable/Social Housing Survey  Hamilton Program identifies an addition 3,000 units over the forecast period at a total cost of $405.0 million. Service level cap for 494 units over 10 years or $66.7 million. $13.9 million (3% of $405.0 million) included in the calculation of the charge. $427/sdu current DC 15