Amendment to “park fees” regulations

On June 15, 2017, the Québec National Assembly adopted Bill 122 for the purpose, among other things, of amending the Act respecting land use planning and development (ALUPD). This bill includes provisions that concern brokers who work with residential developers. These brokers should be aware of the following amendments and contact the municipalities, if necessary, in order to fulfil their verification duty.

When developers apply for subdivision or building permits, municipalities may require that the developer transfer a portion of the site to the municipality free of charge, or pay a financial contribution towards the creation of parks or playgrounds or the protection of natural areas. These transfers are commonly known as “park fees;” the government calls them “park contributions.”

Until now, the area of the land to be transferred to a municipality could not exceed 10% of the surface area of the development site (section 117.4, ALUPD). However, since the adoption of Bill 122, a municipality may now require the transfer of an area of land exceeding 10% of the total area of the site if the land to be subdivided or built is situated within a central sector of the municipality and if all or part of it is green space. If the payment of a sum is required, the amount must not exceed 10% of the value of the site.

The municipal council determines the boundaries of the central sectors of a municipality and defines what constitutes green space.

Click on this link to view the bill.