Nova Scotia Extends Halifax Development Fee Freeze to 2029 to Secure Federal Housing Funds
The Nova Scotia government has extended a freeze on development fees in the Halifax Regional Municipality until 2029 to meet federal requirements for accessing $366 million from the Build Communities Strong Fund. While provincial and municipal leaders say the move supports housing affordability, several councillors warn it could shift infrastructure costs to taxpayers.
The Nova Scotia government is extending a freeze on development fees in the Halifax Regional Municipality (HRM) until 2029. The decision was made to satisfy federal requirements for accessing the Build Communities Strong Fund (BCS), which provides $366 million that the province has committed to equally match to support housing infrastructure across Nova Scotia.
The cap on HRM's development fees began in 2023 and was originally scheduled to expire by Friday before the extension was announced. The renewal covers all development-related fees for both the municipality and Halifax Water. Prior to the announcement, the province halted Halifax Water's application process with the Nova Scotia Regulatory and Appeals Board to raise its rates. Under the new terms, however, certain charges, including those levied by Halifax Water, are permitted to rise with inflation over the next three years.
Municipal Affairs Minister John A. MacDonald stated that the extension ensures affordability while allowing specific charges to keep pace with inflation. Halifax Water general manager Kenda MacKenzie said the utility was not surprised by the decision and expressed hope that the incoming federal funds might help offset servicing costs.
Mayor Andy Fillmore supported the freeze, describing it as a measure to ensure affordability and prevent high development charges from halting private construction.
Several HRM councillors raised concerns about the financial implications of the prolonged freeze. Deputy Mayor Patty Cuttell argued that without development fees, infrastructure costs may be passed on to future projects or existing residents, noting historical underfunding relative to the municipality's needs. Councillor Kathryn Morse said the fee freeze puts the municipality "between a rock and a hard place," suggesting taxes may need to rise if fees cannot. Jillian Ramsay of the Ecology Action Centre also criticized the policy, arguing it benefits developers while shifting infrastructure costs to taxpayers.