Ford and Horwath at odds over provincial cuts to fees for developers

Ontario Premier Doug Ford, in Hamilton on Thursday to announce a new investment, said he told Mayor Andrea Horwath if there's "anything you ever need, you just give me a call." 

But when Horwath said she needed the changes in the More Homes Built Faster Act (Bill 23) that cut some fees municipalities charge to developers in exchange for the right to build certain types of homes reversed, Ford wasn't picking up.

Horwath, former provincial New Democratic Party leader who often clashed with Ford at Queen's Park, like other mayors across the Greater Toronto Area said the city needs those development charges.

"We've just done some major improvements to our wastewater and water facilities down on Woodward. That's partially funded through development charges," she told reporters on Thursday. "We shouldn't put that burden on existing residential property owners."

She previously tweeted Bill 23 will cost the city between $14 million and $25 million per year.

"Development fees fund city growth by paying for essential capital projects such as roads, transit, and community centres – all needed to serve new development in our city," she wrote.

"To make up for this deficit, cities will be forced to either raise taxes or to cut services or essential capital projects ... current taxpayers will be on the hook to fund future development, instead of it being funded through developers' fees."

Ward 8 Coun. John-Paul Danko tweeted city council is considering a 5.4 per cent tax increase for 2023 but it's unclear if that's tied to changes to development charges. The mayor's office wasn't able to provide a response before deadline.

Horwath said the city needs the province to work with municipalities "to fund intelligent growth" instead of impose Bill 23, saying it helps developers more than it does residents.

Ford defends cutting development charges

Premier Doug Ford said on Thursday he disagrees with the notion that taxpayers and municipalities will suffer.

"They're going to get more revenues when these homes are built and these buildings are built," he said.

The province has previously said eliminating development fees could motivate developers to build more homes at a cheaper cost to buyers.

Ford said Ontario needs to build more housing as the population continues to grow.

"Nothing would be worse than having 300,000 people every year showing up to the GTA, Hamilton and Toronto ... not having housing," he said.

"We have to start building for the future."

Back in November when the Bill was passed, Ontario NDP housing critic Jessica Bell said the vast majority of Ontarians won't benefit from the bill.

"Bill 23 will make Ford's developer buddies even richer, while hurting Ontarians by making the housing crisis even worse," Bell said in a statement.