Ajax Mayor Shaun Collier and Durham Regional Council have approved a new way to help get purpose-built rental housing projects off the ground, without risking the money needed for future roads, pipes and community services. The Development Charge Deferral Program, passed by council, is a time-limited tool that lets builders spread out these key fees over a longer timeline rather than paying everything up front.
Under the current rules, rental project development charges are due when a building is ready for people to move in, with the first six payments interest-free. The new deferral program allows developers to stretch payments beyond that window, though later instalments will include interest at prime plus a town premium. The aim is to improve the financial picture for projects that have stalled as borrowing costs and lending rules have tightened across Ontario.
“Across Durham and across Ontario, we are seeing rental projects stall,” Mayor Shaun Collier said in a statement. “Projects that made sense just a few years ago are no longer viable due to higher borrowing costs and tighter lending conditions.”
The Town of Ajax chose this deferral path instead of waiving or reducing development charges outright, a move some other municipalities have made. Council wanted to protect the funds that pay for critical infrastructure while still giving builders the breathing room they need to start construction. Developers must meet agreed building milestones to stay in the program, and its effectiveness will be reviewed in six months.
Council also asked regional staff to look into a Regional Financing Program that would use a portion of Durham’s existing reserves to provide loans for housing projects that are stuck. Collier said the loans would be deployed strategically to unlock development while protecting the public interest. These two moves build on other regional efforts, including the At Home Incentive Program, which has put $30.5 million toward 350 new affordable rental units across seven Durham communities over its first three years.
