The City of Winnipeg has gone through a period of growth that has impacted the City's operating and capital costs and revenues. This growth is placing pressure on public infrastructure and the need for City Council to invest in additional capacity to accommodate growth. At the same time, the condition of existing infrastructure is deteriorating.
The 2016 City of Winnipeg Population, Housing, and Economic Forecast indicates that Winnipeg's average annual population growth over the next 25 years is estimated to increase by 8,200 people per year, and that the City of Winnipeg's Census Metropolitan Area population will exceed 1 million people by 2034/2035 and is projected to surpass 1,055,000 by 2040.
The City of Winnipeg, itself, is expected to grow from a population of approximately 718,400 to 922,600 by 2040, an increase of over 200,000 people, representing a 28 per cent increase.
On October 26, 2016 Council passed the Impact Fee By-Law which allowed for the phased in implementation of the impact fee.
The impact fee is being phased-in over a period of three years. During the initial phase, the impact fee only applies to new residential developments in New Communities and Emerging Communities as set out in OurWinnipeg and captured within the areas outlined in this map.
Council called for the establishment of an Impact Fee Working Group to ensure long term, ongoing collaboration and consultation with industry and community stakeholders. Learn more about the Working Group.
Frequently Asked Questions
An impact fee is one of several tools a city can use to fund the costs of a growing city. An impact fee can help ensure that growth does pay for growth. It recognizes that new or expanded infrastructure is required to accommodate growth throughout Winnipeg and imposes some of the costs of this infrastructure on the properties that benefit from the new or expanded infrastructure.
If you are not building a new single, two-family or multi-family residence or undertaking a new non-residential development, you will not have to pay the impact fee during Phase 1 implementation. In the first phase of implementation, the impact fee only applies to new residential construction or existing buildings being converted to residential uses in New Communities and Emerging Communities as set out in OurWinnipeg and Complete Communities Direction Strategy and identified on this map.
Implementation of the impact fee is being phased-in over a period of three years and will be applied to other types of development in future phases.
The impact fee is being phased in over a period of three years. Phase 1 comes into effect on May 1, 2017, and must be paid at the time of issuance of a building permit or development permit, together with any other fees which may be payable. Whoever applies for the building permit or the development permit is the person responsible for paying the impact fee. The permit will not be issued until the impact fee is paid in full.
You will not need to pay the impact fee if you apply for your residential building permit prior to May 1, 2017 and begin construction prior to January 1, 2018. If those conditions are not met, you may still be subject to the impact fee.
If the permit is later amended to increase the floor area of the building, an additional impact fee must be paid. The additional fee will be calculated as the incremental difference between the impact fee payable on the increased floor area less the fee that has already been paid, or that would be payable for the existing floor area. The additional impact fee must be paid prior to issuance of the amended permit.
The impact fee is being phased in over three years. Phase 1 is effective May 1, 2017, and only new residential developments in New Communities and Emerging Communities as set out in OurWinnipeg and Complete Communities Direction Strategy and identified within the areas outlined in this map will be charged an impact fee of $57.47 per m².
Yes. The Impact Fee By-law outlines certain exemptions.
- Exemptions based on nature of work
Exemptions include residential development on land where one or more existing dwelling units are being renovated, expanded or replaced, and where there is no increase in the total number of dwelling units on that land.
- Affordable housing exemption
The impact fee does not apply to affordable housing provided by:
- Winnipeg Housing Rehabilitation Corporation;
- The Manitoba Housing and Renewal Corporation;
- The Government of Canada or the Province of Manitoba; or
- Any organization that has been approved to receive funding from the Government of Canada or the Province of Manitoba under an affordable housing program, as determined by that government. This exemption requires that the above-listed organizations enter into a written agreement with the City to provide affordable housing for at least 10 years.
- Exemption based on location
In Phase 1 of implementation, the impact fee only applies to residential development within the areas identified on this map.
- Exemption based on timing of construction
Projects that are otherwise subject to the impact fee are exempt if:
- the application for a building permit and/or development permit has been submitted prior to May 1, 2017, with the last business day for submission of applications to meet this deadline being April 28, 2017; and
- construction is initiated prior to January 1, 2018. For the purposes of enforcement of the Impact Fee By-law, construction is defined as the erection or placement of any building or part of a building, and the City's position is that the foundation (footings or piles) should be in place for single family or two-family dwellings, and a significant portion of the foundation in place for all other projects, by this date. If the work authorized by a building permit is not commenced by January 1, 2018 and continued reasonably without interruption thereafter, the permit shall expire and the rights granted under the permit shall be terminated, in which case a new permit application would need to be initiated and the impact fee would be applied.
Do I have to pay the impact fee if I plan on:
- renovating an unfinished basement in my existing house?
- adding a sunroom to the side or back of my existing house?
- adding a deck to the side or back or my existing house?
- building a detached garage on my existing property?
No, but other permit requirements and fees may apply
Yes, secondary suites (accessory use) are subject to the impact fee, except for that part located in a basement. The fee would be calculated based on the difference in the floor area of above-ground floors being converted, expanded or replaced less the floor area of the existing building prior to its conversion. For detached secondary suites, the floor area of the detached secondary suite in an accessory structure would apply.
The impact fee applies to development and building permits only. The impact fee would only be applied once. An additional impact fee would only be charged if the nature (type of uses) or size of the project changed (increased) during the permit process or during construction.
You can call 311 with any further questions you may have.
No, for the purposes of enforcement of the Impact Fee By-law, construction is defined as the erection or placement of any building or part of a building, and the City's position is that the foundation (i.e., footings or piles) must be in place for single family or two-family dwellings, and a significant portion of the foundation must be in place for all other projects, by January 1, 2018. The permit shall expire, and the rights granted under the permit shall be terminated if the work is not commenced by January 1, 2018 and continued reasonably without interruption thereafter.
Yes, unless the City is responsible for an undue delay in processing the application despite the applicant having promptly provided all information requested by the City.
The City will conduct an assessment of active permits around the time of the deadline date to determine the level of construction activity on each site. If it has been determined that construction has not started, the impact fee will have to be paid.
During Phase 1 of implementation, the impact fee will be calculated based on the floor area of a proposed residential development. Total floor area will be calculated including the floor area of all floors for all buildings measured from the exterior faces of the exterior walls, including areas such as closets, stairs and vents, and excluding accessory structures, basement level and any part of a dwelling unit which is not habitable throughout the year (e.g., porches, sunrooms).
During Phase 1 of implementation, only the residential floor area will be included for the purposes of calculating the impact fee. The proportion of common areas within mixed use development that will be charged is based on the portion of the building attributed to residential development.
The impact fee payable would be calculated based on the floor area of any dwelling units being added or any existing floor area being converted to dwelling units.
An applicant for a development permit and/or building permit may submit an application for review or interpretation of the by-law to the Director through the Zoning and Permits Branch within 14 days following the date the impact fee is paid. The application for review or interpretation of the Impact Fee By-law should be submitted in writing and should contain the following minimum information:
- Address of subject property;
- Name of applicant and contact information (e.g., email address, phone/cell number, mailing address);
- Nature of proposed development (e.g., number of dwelling units, proposed use, etc.); and
- Development and Building Permit reference number(s). The application for review or interpretation of the Impact Fee By-law must be accompanied by a refundable application fee of $100. The Director, or designated employee, must notify the applicant of its decision in writing by delivery, registered or regular mail, or fax within 90 days following the date the application for review or interpretation of the Impact Fee By-law is received.
- The Director's decision may be appealed to the Standing Policy Committee on Property and Development, Heritage and Downtown Development in writing, together with a refundable appeal fee of $250. The impact fee must be paid even where an appeal has been made.
No impact fee will be payable if the existing dwelling on the same lot is replaced within 5 years, as long as there is no increase in the total number of dwelling units on the lot.
No, the impact fee will be invoiced at the same time as other applicable fees (e.g., under the Planning, Development and Building Fees By-law) are being charged and have to be paid prior to issuance of the permit. The exception to this would be if the impact fee was not charged due to a project being exempt under the Impact Fee By-law and it was later determined that the exemption no longer applied, or was applied in error.
Yes, you are entitled to a refund of the full value of the impact fee, less an administration fee established by Council ($100), if the related building permit or development permit has not expired and the project does not proceed.
Yes, the project would be exempt from the impact fee.
Yes, the City always reserves the right to correct errors in fees applied.
No, the GST does not apply to the impact fee.
The October 2016 Council Decision on the impact fee notes that Council, with recommendations from the Impact Fee Working Group, may consider rates for impact fee implementation for non-residential uses in New and Emerging Communities as identified in OurWinnipeg (the same areas affected by Phase 1), no earlier than November 1, 2018 (Phase 2). To date, no decision has been made on the implementation of Phase 2.