Residential building permits in London, Ontario, have come to a halt as developers hold out for a multi-billion-dollar reduction in development charges. The announcement, intended to spur housing construction, has instead caused delays.
Impact of the Discount
The proposed $8.8 billion discount on development fees has led builders to pause new applications, waiting for the lower rates to take effect. This has stalled the approval process for thousands of planned housing units.
Developer Response
Industry experts say the pause is a direct result of uncertainty around when the discount will be implemented. Developers are reluctant to pay current fees if a reduction is imminent, leading to a backlog in permit applications.
CTV's Daryl Newcombe reports that the announcement, meant to accelerate housing development, has paradoxically slowed it down. The city is now working to clarify the timeline for the fee reduction to restart the permit process.
