Over the last few years, there have been considerable discussions on the impacts of Municipal Development Charges (DCs) on both the affordability of new homes and on the implications of the overall cost to build new housing. When combined with the eye-watering rate of increase for DCs over the last decade, and the accumulation of significant reserves at the municipal level, some pundits have called for their elimination. Given the important function that DCs serve, elimination is not the answer – but it is high time for the government to reassess how new homes are taxed and an important step must be modernizing the Development Charges Act.