Hamilton's General Issues Committee Discusses Development Charges, Vacant Unit Tax, and Transit Funding

Hamilton's General Issues Committee discussed a federal-provincial Development Charge Reduction Program application due June 19, 2026, transit area rating, the vacant unit tax program, asset management, and climate change reserve funding. The committee approved moving ahead with the development charge application, revisited transit area rating, and heard sharp debate over the vacant unit tax's costs, appeals process, and reported results.

Topics Discussed

1. DEVELOPMENT CHARGE REDUCTION PROGRAM

Committee discussed applying for the federal-provincial Development Charge Reduction Program for 2026-2035 (Item 8.6, File FCS26063). Mike Collins Williams of the West End Homebuilders Association urged Hamilton to apply, calling the program "a rare opportunity to secure substantial provincial and federal investment in housing enabling infrastructure."

Staff said the funding is limited to growth-related projects and "not available" for state-of-good-repair work. They told councillors Hamilton could support "a 100% DC reduction for residential development charges for the required three-year period" if the city secures enough outside funding.

Councillors pressed staff on taxpayer impacts and whether the city had capacity to negotiate and administer the program on a tight timeline. Staff said their goal was "to have that have a net zero impact to tax or ratepayers." Mayor Andrea Horwath said staff were still focused on getting the application in first: "we haven't got that far yet" on negotiation capacity, but resources were being put in place "to complete the applications."

2. VACANT UNIT TAX PROGRAM

Committee spent extensive time on the vacant unit tax, including revenue reporting, appeal fees, customer service, and whether the program is achieving its stated purpose. Councillor Nrinder Nann said "288 units back online and occupied is a significant outcome" and also pointed to "the $8.35 million going towards building more affordable housing."

Mayor Horwath defended the program, saying, "More people are being housed. There are fewer vacant units. The revenues are coming into pay for even more affordable housing."

Other councillors challenged both the burden on homeowners and the way revenues were being described. Councillor Rob Cooper said the city had collected about $5 million gross, not the full amount cited for affordable housing, adding that after expenses "that will give us a net revenue of maybe $3 million." He also said the city was placing "an administrative burden on 99% of homeowners to identify roughly 1% of properties."

Councillor Mike Spadafora objected to the $500 appeal fee for residents wrongly charged, saying seniors "shouldn't have to pay $500 to make the point that they're refunding money that they shouldn't have paid in the first place." Staff also reported that "57% of the deemed vacant properties appealed and roughly about 90% of those that appealed were successful."

3. TRANSIT AREA RATING

Committee considered the Transit Area Rating Review Subcommittee minutes and whether transit costs should be funded through the general levy. General Manager Mike Zegar said the subcommittee direction was "no longer to pursue" the option of funding transit through the general levy across all properties in Hamilton.

The issue drew debate about fairness for rural taxpayers and service levels. Councillor Tom Jackson said, "The optics in the community that I represent is that there's taxes, there's higher than average taxes this term of council," and added that layering on other taxes made the proposal "not favorable."

After discussion, committee reopened and revoted on the item.

4. ASSET MANAGEMENT AND INFRASTRUCTURE FUNDING

Staff presented the annual asset management update, including financing strategies for transportation, water, wastewater, stormwater, and other assets. General Manager Mike Zegar said provincial regulation requires a financing strategy for bringing assets to a state of good repair, but "what the regulation does not require is the pace of that investment."

Councillor Brad Clark asked, "as we move through this process, will we be getting more accurate in our estimates? It's challenging when you're trying to estimate a cost 10 years out."

Staff said local taxpayers and ratepayers remain the main source of infrastructure funding, with outside funding limited and often restricted to specific categories.

5. CLIMATE CHANGE RESERVE AND HEAT RESPONSE

Committee approved climate change reserve recommendations and heard delegations focused on extreme heat response, transit access, and support for DARTS users. One delegate, Miriam, asked council to direct DARTS staff to provide service measures for extreme heat, including "advanced planning for cooling center transportation and driver training."

The discussion also touched on cooling spaces, transit affordability during heat events, and how the city communicates available supports during extreme weather.

Motions

• Item 8.1 - Corporate Energy Sustainability and Commodity Policy (PW26058) — Passed, 12-0
• Item 8.3 - Waterfall Destination Master Plan (PEED26035A) — Passed, 12-0
• Item 8.4 - Transit Area Rating Review Subcommittee Minutes / Transit Area Rating — Motion to reopen passed, 10-0; revote passed, 7-3
• Item 8.5 - Climate Change Reserve Funding (PEED26087/206) — Passed, 9-1
• Item 8.6 - Federal-Provincial Development Charge Reduction Program (FCS26063) — Passed, 13-0
• Item 7.3 - Vacant Unit Tax information report — Defeated, 7-7 tie
• Boots in the Creek 2026 funding — Passed unanimously
• Autism Sensory Friendly Light Up the Creek 2026 funding — Passed unanimously
• Creek Business Improvement Area / Canadian National Autism Foundation funding, up to $10,000 from the GFL Royalty Reserve (File #117036) — Passed unanimously
• Redevelopment of Property in City of Hamilton (PED26134) - confidentiality motion — Passed, 12-0
• Notice of Motion 10.1 - Vacant Building Enforcement at Industrial Properties — Introduced as notice for future consideration

Attendees

Councillors identified in the meeting materials or debate:

• Craig Cassar
• Andrea Horwath
• Tom Jackson
• Mark Tadeson
• Esther Pauls
• Rob Cooper
• Alex Wilson
• Maureen Wilson
• Jeff Beattie
• Mike Spadafora
• Ted McMeekin
• Brad Clark
• Tammy Hwang
• Matt Francis
• Nrinder Nann