Ontario Regulation 252/23, enacted under the Municipal Act, 2001, amends Ontario Regulation 586/06, which deals with local improvement charges, particularly focusing on priority lien status. One of its primary aims is to update references from the “Ontario Municipal Board” to the “Ontario Land Tribunal,” reflecting a shift in governance related to local improvements.

Priority lien status refers to a classification that allows certain charges related to local improvements to take precedence over other financial claims against a property. In the context of local development charges, it means that when municipalities impose extraordinary charges for works like infrastructure improvements (e.g., roads, sewers), those charges must be paid first if the property is sold or if there are other claims on the property.

The regulation includes significant terminology changes, systematically replacing mentions of the “Ontario Municipal Board” with “Ontario Land Tribunal” throughout various subsections, enhancing clarity in municipal processes. It also provides detailed definitions relevant to local development charges, including “valid agreement,” which recognizes agreements deemed valid under Article 36.4; “cost,” referring to the capital cost associated with a work; and “work,” which encompasses a range of construction activities such as public roads, water and sewage systems, and public parks. Municipalities are granted the authority to undertake both public and private works as local developments, including the acquisition of existing works and the imposition of extraordinary charges to recover costs.

When municipalities engage in local developments, they can impose extraordinary charges on adjoining lots and those benefiting from the work, with these charges holding priority status to facilitate cost recovery. Prior to commencing any local development, municipalities are required to notify the public and affected property owners, providing estimates of costs, the expected lifespan of the work, and potential charges. If a valid petition opposing the work is received, the municipality is prohibited from proceeding for two years unless certain conditions are met. Municipalities also have the option to seek approval from the Ontario Land Tribunal for works designated as local improvements, allowing property owners to file objections for consideration during hearings.

The regulation outlines provisions for the validity of petitions, specifying the support required from property owners, and allows signatories to withdraw their support prior to the certification of the petition’s validity.

Ontario Regulation 252/23 streamline municipal processes for local improvements and align terminology and procedures with modern governance practices. By clearly defining roles and responsibilities and promoting community engagement through notification and petition processes, the regulation enhances transparency and accountability in municipal undertakings

Ontario (253/23) August 26, 2023