This is an email discussion i have been having with the regional treasuer....
Halton Region Chair Gary Carr has referred your email to me regarding the unexpected costs on the purchase of your new home. It is very unfortunate that you have been put in this position.
As I understand it, you recently received a letter from Mattamy Homes who is attempting to collect an additional $7888 from you prior to closing your new home.
The amount Mattamy Homes is referring to arises from the financial contribution that Mattamy Homes agreed, in 2007 and 2008, to make to Halton Region to pay in two instalments its share of the cost of key infrastructure required to support growth in the Region. It now appears that Mattamy Homes is trying to pass these costs on to you as a price adjustment on closing. You should consult your legal counsel as to whether Mattamy Homes has the right to pass through these costs to you.
The following provides some background so that you can better understand the information provided by Mattamy Homes.
Halton and particularly the Town of Milton, is one of the fastest growing communities in Canada. Providing the infrastructure, including roads, water services and sewers to support this growth is very costly. It is the long-standing Council approved policy of Halton that existing taxpayers should not pay for the costs of growth. To ensure that existing taxpayers are not impacted by the costs of growth, the Region prepares a financing plan for all growth related infrastructure costs which identifies the costs that must be paid by developers of new housing units in Halton.
In 2007, the Region began work to update our financial plan. The resulting plan, called the "Financial and Implementation Plan for the 2008/2009 Allocation Program" determines the full capital costs of servicing new units of housing with new infrastructure, like roads, water and sewer services. It then assigns these costs on a per-unit basis, which is then payable by developers on all new units being constructed in Halton.
The preparation of the Financial and Implementation Plan for the 2008/2009 Allocation Program included a comprehensive consultation process with developers in Halton, including Mattamy Homes. Through this consultation process, adjustments were made to the infrastructure program and the proposed municipal contribution was reduced from the initial estimate provided to the developers in October, 2008 of over $15,000 to the $7,888 approved by Regional Council in July, 2009. It should be noted that Regional Council approved the Financial Plan Framework, including the municipal contributions, in November 2008.
Mattamy Homes entered into agreements with the Region in 2007 and 2008 which committed them to pay the costs identified in the 2008/2009 Financial and Implementation Plan. As noted above, you should consult your legal counsel as to whether Mattamy Homes has the right to pass these contribution costs on to you. That is a contractual matter between you and Mattamy Homes.
More information is available at
http://www.halton.ca/About/Finances/infrastructure.htm and we will continue to update the website with further information as it becomes available.
Jane MacCaskill
Regional Treasurer
My response....
Is there a way i can get documentation proof of this? So what you are telling me is that Mattamy knew their costs in October 2008? not on July 15, 2009 when the bill was passed? Also are you saying that this fee is not a tax as per what Mattamy is claiming and a fee they knew about in October 2008?
Can you please clarify.
Kind regards,
Bridgette Rosa
Her response...
The Halton's website at
http://www.halton.ca/About/Finances/infrastructure.htm has many of the reports and presentations related to this issue.
A presentation was provided to Halton developers in October 2008 which included the estimated costs. In November 2008 Regional Council approved the Financial Plan Framework which included a revised estimate of the costs. In July 2009 Regional Council approved the Financial Plan which included updated costs.
Please let me know if you require any additional clarification.
Jane
My response...
So by you stating that in July 2009 you approved the finiancial plan with updated costs, does that mean instead of us paying $12,000 you approved it to being reduced to $8000? or does it mean that Mattamy costs was more than they expected it to be after November 2008 and they presented you with another plan to amend and approve?
Are you also saying that Mattamy knew of these figures in 2008? so Mattamy not factoring in these fees in the prices of the houses they sold us is their negligence?
Regards,
Bridgette
Her response....
In November 2008, Regional Council approved the Financial Plan Framework which included a municipal contribution of approximately $12,000. As a result of several technical adjustments, including adjustments to the Region's infrastructure program, the municipal contribution in the financing plan approved July 2009 was $7888.
Jane
Interesting, thought i'd share.