Bonnie Crombie, the Mayor of Mississauga, warned on Wednesday that homeowners in Mississauga may see an increase in their property taxes as a result of the recently passed Regional Housing Bill.

At a press conference, Crombie said that Bill 23, or the More Homes Built Faster Act, "will be a big hit to your wallet," noting that the average property tax could rise by five or ten percent, or nearly $300 to $600.

The legislation also reduces and exempts fees paid by developers for building affordable housing, non-profit housing, and inclusive zoning units. While the fee exemption could encourage the construction of more housing, Crombie argued that there is nothing in the legislation to ensure that costs will not be passed on to homeowners, adding: "Under Bill 23, property taxpayers will fund developers’ profits. While we can certainly agree with and appreciate the province’s desire to stimulate affordability, it cannot be done on the backs of our cities and our taxpayers. None of this is fair to our property taxpayers or our residents."

The mayor also pointed out that property taxes could increase further as Peel Region is likely to implement an increase "equal to or greater than what the city faces," meaning a single family could see a total average increase between $600 and $1,200.

Crombie also said that the City of Mississauga could lose up to $885 million over 10 years in development fees due to the Housing Act.

Municipalities have also sounded the alarm about the implications of Bill 23 on their financial resources, with the Ontario Municipal Association saying that the legislation could leave its members with $5 billion.

On Wednesday, Toronto Mayor John Tory warned that if the Ontario government does not come up with a plan to help municipalities cover the shortfall caused by the legislation, "we will be escalating our campaign against this legislation."

Meanwhile, Steve Clark, Ontario’s Minister of Municipal Affairs and Housing, wrote a letter to Tory saying that "the City of Toronto is full up when it comes to the impact" of Bill 23. He also announced on Wednesday that the province will launch a financial party audit of the city to determine whether Toronto will suffer a revenue shortfall due to the Housing Act.

While Clark did not indicate whether other municipalities will be subject to the same review, Crombie said she would welcome the province doing so. She pointed out that it is not true that municipalities have large amounts of reserves.

Beyond the effects of Bill 23, Crombie said Mississauga is also facing a $52 million deficit in 2023 due to the COVID-19 pandemic.