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WHITBY FRE FiESS, WEDNESDAY, <lUNE IK, 19, PACE 9 Homebuilders tbreaten legalI action over- lot levies By Mike Kowalski Ontarjo hoinebuilders will fight any school board and muni- cipality which imposes lot levies on new homes. The Ontario Flomebuilders' Association (ORBA)- will take legal action agalnat any munici- pality and school board which approives a bylaw based on the provincial government's Develop- ment Charges Act, passed last November. In so, doing, the OMHBA may be on a collision course ini the courts with Durham R1oEgis two school. boards. OfficiaIs from both boards are now working on a bylaw which will allow the boardaé to impose lot levies for the firat time. Enx a letter to al Ontario muni- cipalities and school boards, the OHIBA said it will fight the firat attempt at using the provisions' of Bil 20, 'the Development Charges Act. The act enables municipalities and school boards to charge lot levies on new houses to.pay for such services as roads, libraries, sclxools, water and sewers. Prior to Bill 20, Ontario school boards could not cllect lot. leviesl from devloers. The O HAclans theact is unconstitutional in - that it in- pose s indirect taxation which is the exclusive right of tue federal government. The OIHBA also says the act contravenes the constitution's denominational school rights because it requires separate school supporters to pa% a charg e d to build apubic sho. imeearemost concerned about the unfair and short-sighted nature of this tax," said OIBA president John Mfanfe1d in a press release. "We have been atdied that the act violates Cmnada's consti- tution anxd the Charter of Rights and F'reedoms,» added Mansfield. David, Keenan, -a.spokesman for Coscan Developnxent Co»rp.. told The Free Press that Bill 26 is "clearly discririnatory aainst peole who buer new homs. "Oiconcetn is that new home buyers will have to pay for facili- ties the whole conxunty will benefit from, new home buyers will be looked'on aa *new source of fuxds, » said ee-ýnan.1 Although Bill 20 is intended to provide funids for services reqlrd for new growth, Keenan tedthis a "false security.n "It will not generate into the 1990s thxe cash flow the Province expects te pay for these thinge,» said Keenan. He said the poplation is aglng and the demand flor lre1 oe in which te raise familles is over. Keenan forecast about 70,000 te 80,000 new houses being bult inx Ontario annually during the next decade.,which will b. "Way off" the numbers regiatered dur- ing the latter 1980s.' eTi Province fails te recog- nize that a lot of growth was te catch up from the downtÙ=r in the economy inx 1981-M3." Keenan said that under Bill 20, 1Lt -.vie .3old-dd1.o3 levies for single and semi-deta- ched homes while townhouxss are assessed at $4,206. One -bedroom and smaller apartments are $1,774 while apartments larger than one-bed- room are $3, 156 Durham Region charges $3,969 for one-bedroom and smaller'apartments and $5,235 for larger apartments. Ail other types of housing are assessed at $6,501. Keenan said his $13,000 figure does not look that bad when initially added to the prioe of a new home. The true picture emerges upon dloser scrutiny, hie said. According to Keenan, 75 per cent of the. $13,000 will be mort- gaged, about $9,700 over a 25- year pyod, at an average inter- est raté of 12 per cent every five years. ."That's $48,000 te $60,000 of added cost to, pay- over the terni of the mortgage,» said Keenan. "That's the real killer. It means first-timne buyers will be pushe out of the market if the develope dosen't pick it up.» Kenn said Peterborough and Hamilton both attempted to pass new lot levy bylaws under Bill 20. " But as isoon as our position was put forward they saw the consequences of thefr action and went back for further study.» he possibility of legal action frightens neither Ian Brown chairman of theDurham Board of Education, nor, Catharine Tun- ney, ch.... n > the Durham separate schpol bard. Brown and 'Tunney, both Whitby trusteeg, support the aims of Bill 20.' . We see it "~ a source of revenue inx the face of shrinking revenue from the Province,» said Brown. Brown said the provincial government onee paid 75 per cent of the cost ofnew schools but that has dropped te less than 60 per cent inx recent years. We need te build at least two, new elementar schools each year and we cari t finance it from ministry and local sources alone,» said Brown. "'We see it a!s a method of tapping into new revenue.» B rown said legislation such as Bill 20 requires aL "philosopli shift» in the publices thiniýLng from- "everyone pays te user paHsning that people buying homes in new subdivisions are thxe ones requing chools, not tlxose living in estallished neigh- borhoods1 said Brown. Inx addition te lot levies, Brown said his board also wants develo- pers te set aside land inx new subdivisions specifically for school sites. "They're now requied te set aside five per cent of the land for parks,» explained Brown, "a school is just, as important or more so, than a park. "If a developer builds housès which generate chldren, h e should help us build echools.» .Brown added that by not hav- ing te purchase property for schools, the. board could then turri arouxxd and not collect as much money in levies. Brown expecta the bylaw to come before the board lin the fal axxd then once approved in draft form, it will be subject te, public hearings. .Followin g any possible changes, the lylaw will then be pased th bard and sent te the local municipality for its Accordng te Rick Temporale of the. Ontario Ministry of Munici- .gal Aars, thýere is afveya sunst provi[sion in thelgs- After five years the. entire pro- cess must be repeated and a new bylaw passed, said Temporale. "This allows the municipality, school board, public and industry te review it. It's a process of accouintability, is it working?» saidl Tempoae. Bylaws need not be for the ful ffive- eareriod either, "ad Tem- prale. aThey can ass a bylaw for juqt three years but the mai- m umMMla fv.» Separate board chairinan Tun- ney believes school boards are «fully justified» lin collecting lot levies. However, she did not wish to comment on the OHEA challenge on the religion aspect, saying it, will be up to the courts to decide. Browni speculated that Dur- ham and other "growth boards» in Ontario may forin a united front on the issue. "I expect the growth boards will join together and pass a common bylaw and take it from there.» Whitby Mayor Bob Attersley had no comment on the builders' threat of legal action. "Let them do it if they want," said Attersley. Attersley' said there are no plans to change Whitby's exist- ing lot le'vy bylaw, nor did he expet a change lxx the Region's bylaw. Please give generously to TFi[- Kil)NLY FOUNDATION 0F CANADA. -Speciai offer conýssis of3weeks of NiIr/Sysem sevices. Doos not Indcude cMofa excusive NuliSysemf,,ood, clades and maintenwio prbgmi. Ofevild cipa1r>ain oetes., Newdloeits orily, nutrï/system"