PERTH — A proposed provincial housing bill is raising concerns at Perth council, with officials warning the legislation could leave smaller municipalities caught between growth pressures and reduced revenue streams.
Bill 98, introduced March 30, is tied to a $17.6 billion federal-provincial infrastructure program announced by Prime Minister Mark Carney and Premier Doug Ford. Under the proposal, municipalities would only qualify for funding if they cut development charges by at least 50 per cent or eliminate them entirely.
For Perth, that could mean a difficult gamble.
Director of Development Services Joanna Bowes told council the town may ultimately be better off keeping the long-term revenue generated through future growth instead of pursuing uncertain provincial funding.
“In my opinion, we could cut our development charges by 50 per cent, but the chances of us getting any sort of major pot of money or major grant, I think most of that will go to the larger cities,” Bowes said. “So I say hedge our bets. If Caivan starts building over the next five or six years, then we may see more money than what they could offer us.”
Development charges help municipalities pay for infrastructure tied to growth, including roads, water systems, wastewater treatment and recreation facilities.
Bowes said municipalities are still waiting for firm details from the province on what funding may actually become available.
“This is a really hot topic,” she said, adding the province appears to be “working their way towards removing development charges for sure.”
Coun. Jim Boldt described the proposal as a possible “carrot and stick situation,” saying council needs more information before making any decisions.
“I think the amount of money that they potentially could throw our way might help us make our decision on how we want to proceed on this,” he said.
Coun. Dave Bird warned the pressure from Queen’s Park may extend beyond this specific funding stream.
“On the day that this was announced, in the words of the Premier himself, ‘let me be very clear, if you don’t cut your charges, you get no funding,’” Bird said. “There was discussion at Good Roads from municipalities of all sizes that if you didn’t play the game on this, it doesn’t just mean that pot of funding, it could mean when applying for any grants.”
Beyond development charges, Bill 98 also proposes broad planning reforms. The legislation would introduce standardized Official Plans across Ontario, potentially limiting municipalities’ ability to tailor policies to local needs.
Climate change policies could also be removed from Official Plans, raising concerns about protections for wetlands and flood-prone areas.
Additional changes could weaken municipal site plan control powers and allow consultants hired by developers to determine whether applications are considered complete.
For now, Perth council voted to receive the report for information, with further analysis expected as the province releases more details.
Keep connected to your community—Read the latest Perth Ontario news.
