Here is a run-down:

• The Region passed an approximately $7,888 increase in Development Charges for SDE residential construction
• Mattamy Homes passed that on to homeowners who have purchased but not closed.  Many of them got a $7,888 bill in mail
• The Region insists that it’s a fee payable by Mattamy and implies that they should not be able to pass it on to consumers.  More info in their FAQ
• Mattamy cries foul, especially since they paid millions in development charges in advance (you can think of it as an interest-free loan). Perhaps the region should not be able to back-charge if it accepts money in advance.  Their point of view is here
• But then again, Mattamy rushed through the approval of 1500 homes in 2007 and agreed to pay remaining charges when they were calculated in the 2008-2009 budget.  They took a business risk (that the increase would be low) and lost the gamble

I have been asked where I stand. I don’t know yet.  I am trying to get more info.  I sympathize with people.  I’d be pissed if I had to come up with an extra $8,000 for closing.  That’s a lot of money.  Here’s what I agree with :-

General:

• New residents pay for all development costs.  Everyone, including Mattamy, agrees with that
• It has been argued that the Region / Town could be more efficient with projects that cost DC money.  [Zeeshan says: Perhaps]
• I am personally against stealth tax.  People should know how much of their house price was due to development fees and where that money is going. They could find out if they really cared, but it would be nice if this was spelled out for them
• I want to see development charges stay in the locale they are raised from.  If residents in a subdivision that requires an underpass have higher development charges, then that’s fair.  If residents in that subdivision pay through their noses but still do not get their infrastructure, then that’s unfair.

Halton:

• Halton’s share of development charges go into a general pool and can get spent anywhere.  So Halton can take a few dozen million dollars from Mattamy home buyers in Milton and spend it on overdue projects in Burlington.  That’s where the theory breaks since this money, raised by home buyers in 2009 and 2010 in one location may not necessarily fund their growth.  By the way, I am not accusing the Region.  I am saying that it’s possible.  It should not be. 
• I also agree that the Region cannot have it both ways.  Either it should take fee from a builder in advance or it should wait until it finalizes what the charges are.  That means no advance approvals of homes for builders either (sorry Mattamy).
• Does it really cost two to three times more to put infrastructure in Halton than it does in other places?  Has the cost really gone up nearly 3 times in last few years?  Is it a ploy to stop growth?
  [It’s not.  It’s all Ontario’s fault (yes, I am serious)]

Province:

• I sympathize with the Region as well. The Province funded a lot of new growth in Peel and other regions but have now left Halton with the bill.  Halton is growing like crazy and managing that growth costs a lot of money. Ontario’s Place To Grow will only make things worse.  Ontario needs to foot up the bill
• I am disappointed that Ontario even allows a builder to pass on additional cost after a purchase and sales agreement has been signed.  Ask yourself this, if your income goes down after you sign the agreement then can you pull out?  Can you buy a smaller house?  No!  You have to put up with whatever your financial circumstances become. Why shouldn’t the builder do the same? 

Builder:

• I feel bad for Mattamy, I really do.  But it seems like consumers are being used as pawns in politics between the Region and builders. That’s not right, no matter what hardship Mattamy is going through.  As I said, Mattamy gambled when it agreed in advance to a charge without knowing what it was going to be.  It was a business risk that did not work out.  Tough!

Finally, shame on lawyers who reviewed Purchase and Sales agreements but did not cap the cost to $1,000 like many other lawyers did.  Shame, shame, shame. They should refund their client’s fees and close for free!

It’s a tough situation for everyone, but especially for people who got stuck in the middle. It seems like the Region doesn’t care about them, since they represent a tiny number of votes (and new residents don’t vote anyway). The builder does not care about them, because these people are already stuck.  The Province doesn’t care.  These people are really in a tight spot.

I will write more once I have more information, I am on the case.  It is just remarkably difficult to get simple information.  You’d think that halton.ca would have a history of residential development charges in a table format that’s easy to find.

Stay tuned!