City Development Fees Amongst Lowest in Canada

Councillor Danny Breen, Chair of the Finance and Administration Standing Committee, says that recent statements by the Newfoundland & Labrador Homebuilders Association about the impact which municipal fees have on housing prices are clearly exaggerated.

“There is no denying the fact that housing prices are rising, which presents a real challenge for homebuyers, especially first time buyers with modest incomes,” said Councillor Breen. “But St. John’s has some of the lowest municipal fees and charges in the country, even with our recent increase to development and application fees. When you look at the big picture municipal fees and charges are not a significant factor in housing prices.”

Councillor Breen referred to a study by CMHC entitled “Government-Imposed Charges on New Housing in Canada”.  This study compared municipal imposed charges on new housing in 21 Canadian cities, although St. John’s was not included. On average, municipal charges represented about five per cent of a houses price in 2009, and went as high as 10 per cent in some jurisdictions.

“In St. John’s, municipal charges represent less than 1.5 per cent of the house price”, said Breen.  “In fact, when we compare the costs to develop in St. John’s to those cities in the study, out of the 21 cities surveyed by CMHC, Yellowknife was the only one lower than St. John’s. Ultimately it is not the City of St. John’s causing the price of houses to rise in our City. We have, and will continue to ensure, that in setting our fees we are doing so in a fair and equitable manner in comparison to other comparable regions in the country.”

In regard to partially built homes, Councillor Breen points out that houses which may be half or three-quarters built do receive the benefit of City services. 

“When we snow clear a street, we don’t do it just for the taxpaying occupied houses on that street.  Houses under construction receive the benefit of that service, and should therefore contribute towards the cost,” says Councillor Breen. “In addition we are providing water and sewer to these homes long before they are every occupied. This is about coming up with a fee system that acknowledges the use of City services and the costs incurred by the City for new developments.”

Government Charges on New Home Construction

For further information:
Jennifer Mills
Communications Officer
City of St. John's
Phone: (709) 570-2037
Cell: (709) 690-7586
E-mail: jmills@stjohns.ca

Danny Breen
Ward 1 Councillor
Chair, Finance and Administration Standing Committee
City of St. John’s
Phone: (709) 576-2332
Cell: (709) 687-9513
E-mail: dbreen@stjohns.ca