2021 EDC Background Study and By-law

NOTICE OF THE PASSING OF EDUCATION DEVELOPMENT CHARGES BY-LAW AMENDMENT

On May 10, 2021, the Waterloo Catholic District School Board (WCDSB) and Waterloo Region District School Board (WRDSB) passed Education Development Charge (EDC) by-laws, which came into force on June 1, 2021. At that time, the boards committed to reviewing EDC inputs such as land value assumptions annually. The regulation permits school boards to increase the quantum of the EDC rate once in a one-year period via an amendment.

The WRDSB passed an amendment to its EDC By-law on May 30, 2022. The new rates came into effect on June 1, 2022.

2021 EDC By-law

Please be advised that on Monday, May 10, 2021, the Waterloo Region District School Board (WRDSB) and Waterloo Catholic District School Board (WCDSB) adopted new Education Development Charges By-laws, 2021. Copy of the reports and By-laws (unsigned) are available at: 

The By-law is in effect as of June 1, 2021, for five years (expiring May 31, 2026); however, it may be amended annually.

Rates

The following WRDSB Education Development Charge (EDC) rates apply to building permits in the Region of Waterloo:

Residential

  • Residential Rate effective June 1, 2024 – May 31, 2025 (Year 4): $3,148 per unit
  • Residential Rate effective June 1, 2025 – May 31, 2026 (Year 5): $3,448 per unit

Non-Residential

  • Non-residential Rate effective June 1, 2024-May 31, 2025 (Year 4): $1.81 per square foot
  • Non-residential Rate effective June 1, 2025-May 31, 2026 (Year 5): $1.91 per square foot

Background

EDCs are a levy on new residential and non-residential construction.

We collect EDCs under the Education Act, Ontario Regulation 20/98, as amended. Local cities and townships collect charges for us when issuing building permits.

We use EDCs to buy land for new schools to help us grow.

The Education Development Charges By-Law, 2021 is effective from June 1, 2021, to May 31, 2026.

In 2020, the WRDSB and the Waterloo Catholic District School Board (WCDSB) retained Watson & Associates Economists Ltd., Keel Cottrelle LLP and Cushman & Wakefield to assist the school boards through the process of renewing their Education Development Charge (EDC) by-laws in the Region of Waterloo. The EDC team has prepared a new Education Development Charge Background Study (linked below) that allowed the Boards to adopt new EDC by-laws prior to the expiry of their existing EDC by-laws in June 2021.

Do I have to pay a fee?

Some land uses, like hospitals, government buildings, or farms, do not have to pay EDCs. Please refer to the Education Development Charges By-Law, 2021, for a complete list of exempt land uses.

Unlike some municipalities, we do not have any area-specific exemptions (e.g., core area redevelopment).

Demolition or redevelopment credits

Demolition or destruction of a building gives credit for redevelopment. Redevelopment must be on the same site. Credits last for two years on residential units and five years on non-residential floor areas.

Residential additions and conversions

We do not charge EDCs on basic home additions, like a sunroom. Sometimes, a charge applies if you add more units to a home. A charge applies if you convert a home within 12 months of moving in. We do not charge if you add:

  • one to two new units to a single-detached home
    • the total gross floor area of the new unit(s) must be smaller or the same size as the existing unit
  • one new unit to all other residential dwellings (e.g., townhouse, apartment, etc.)
    • the total gross floor area of the new unit must be smaller or the same size as the smallest existing unit in the building

For more information, consult the Education Development Charges By-Law, 2021.

Non-residential (industrial) additions

We may not charge EDCs on additions to existing industrial buildings if the gross floor area increases by less than 50 percent. If it increases by more than 50 percent, a charge applies only to the increase over 50 percent.

This does not apply to detached buildings on the same site. For more information, consult the Education Development Charges By-Law, 2021.

EDC resources

More information on the EDC by-law is available in the following documents:

Contact Us

edc@wrdsb.ca