Development charges (DC) play an important role in how growth infrastructure is financed in London. Development charges are fees collected to help pay for the cost of growth infrastructure required to service new development, such as transportation, transit, water/sewer infrastructure, community centres, fire, police and library facilities. Development charges do not pay for operating costs or infrastructure renewal.
At least every ten years, the City conducts a development charges background study to forecast the City’s future residential and non-residential growth to determine infrastructure needs and costs. This information is used to calculate development charges and enacted in a DC By-law. The City is in the process of implementing a new DC Background Study and By-law, with a target effective date of January 1, 2028.
Learn more about the DC Background Study
The City of London currently does not have any community benefit charges or educational development charges (EDC).
DC Rate Information
Previous Year's Rate Information
To learn more watch the world of development charges video:
DC Act Requirements
2021 Development Charges By-law
DC Claimable Works
Please email devfinance@london.ca to request the following Excel worksheets and documents:
- Initial Proposal Review (IPR) – Claimable works and DC revenue estimate worksheet
- Summary of DC claims from the City Services Reserve Funds (CSRF)
DC Claimable Works Checklist
DC exemptions for Additional Residential Units (ARU)
The scenarios below are to assist applicants with the Development Charges Act ARU exemptions (Section 2. subsection (3.1), (3.2) and (3.3), and the City of London’s DC By-law (section 35. subsection 5.). The actual eligibility of an ARU DC exemption will be examined through Building Services and the permit application process.
Any other combination of ARUs created which is not listed below will be subject to DCs in accordance with the Development Charges Act and DC By-law.
DC exemptions for ARUs on properties with an existing building or structure.
Single detached, semi-detached or street townhome
When there is one existing unit on the property, there is an exemption if:
- There is a second and/or third unit added in or attached to the existing building or structure
- There is a second unit added in or attached to the existing building and / or one detached unit added to the property.
When there is a building or structure containing 2 units on the property there is an exemption if:
- A third unit is added in or attached to the existing building or structure
- A third detached unit is added to the property
When there is an existing primary building and one detached unit, there is an exemption if:
- There is a second unit added in or attached to the primary building and there is not more than one unit in the detached structure.
Other residential buildings s. 35 (5) of DC By-law (applies to duplex, triplex & detached additional residential buildings or structures)
- An exemption applies if the gross floor area of the ARU does not exceed the gross floor area of the smallest dwelling unit already existing in the building.
This exemption does not apply to already converted dwellings as defined in Section 2 of the Zoning By-law.
Rental housing development (four or more units existing)
One additional unit is exempt by the greater of 1 or 1% of the existing units. For example, a building with 200 units would be eligible for 2 ARU exemptions.
DC exemptions for ARUs on new builds with additional unit
Detached, semi-detached and street townhomes with a detached structure
When there is a primary building with one detached ARU:
- There is an exemption for the detached ARU only
- You will still have to pay DCs for the primary building
When there is a primary building with an ARU in or attached plus a detached ARU:
- The ARU that is in or attached to the primary building and the detached ARU are exempt from DCs
- You will still have to pay DCs for the primary building
When there is a primary building with two ARUs in or attached and one detached ARU:
- The ARUs that are in or attached to are exempt from DCs
- You will still have to pay DCs for the primary building and the detached ARU
Detached, semi-detached and street townhomes without a detached structure
When there is a primary building with one ARU in or attached:
- The ARU is exempt from DCs
- You will still have to pay DCs for the primary building
When there is a primary building with two ARUs in or attached:
- The two ARUs are exempt from DCs
- You will still have to pay DCs for the primary building
When there is a primary building with three ARUs in or attached:
- Since the building or structure will contain four or more units, it now falls under the rental housing development category. It is eligible for deferral and rental discounted DCs. Learn more in our Development Charges in London brochure.