Alberta Municipalities have expressed concerns regarding a request from the federal government to reduce developer fees in exchange for accessing funds from a $51-billion infrastructure program known as the Build Communities Strong Fund. This initiative aims to support housing development by providing federal funding for infrastructure projects such as roads, water systems, and public transit.
According to Alberta Municipalities, the requirement to significantly lower development charges, also known as off-site levies in Alberta, could hinder progress in the construction of homes. The organization, representing cities, towns, and villages in Alberta, argues that a uniform approach to reducing these charges may shift costs to local taxpayers, delay project completion, and undermine municipal autonomy.
Dylan Bressey, President of Alberta Municipalities, emphasized the importance of development charges in Alberta, particularly for essential infrastructure like roads and utilities needed for new home construction. He highlighted that Alberta has already streamlined processes to facilitate rapid home construction rates and cautioned against additional federal constraints that could impede local decision-making.
Housing, Infrastructure, and Communities Canada asserted that to expedite home construction, governments should streamline regulatory procedures and incentivize building activities. The federal department noted that by reducing development charges without compromising infrastructure investments, more construction projects could commence promptly, supporting the growth of housing developments.
In Edmonton, off-site levies are primarily allocated for constructing firehalls when land is subdivided for new neighborhoods. However, developers also contribute to building additional infrastructure such as sewers and roads through servicing agreements. A city spokesperson expressed concerns that a mandate to eliminate or further reduce development charges could strain the city’s ability to finance necessary infrastructure projects, potentially hindering housing supply and growth support.
Bressey, who also serves as a city councillor in Grande Prairie, emphasized that smaller municipalities across the province are experiencing growth and require new infrastructure to accommodate development. He stressed the unique needs of Alberta’s diverse communities and expressed hope that the federal government would consider tailored solutions that acknowledge the province’s off-site levy system.
