TORONTO — The Association of Municipalities of Ontario says parts of the province's new housing legislation may actually work against the goal of building more homes.

One aspect of a large bill introduced Tuesday by Municipal Affairs and Housing Minister Steve Clark would freeze, reduce and exempt fees developers pay in order to spur building.

Affordable housing, non-profit housing and inclusionary zoning units – meaning affordable housing in new developments – as well as some "attainable" units would be exempt from various charges.

But those fees go to municipalities to pay for services for residents of those homes, such as roads, community centres and transit.

AMO says in a statement that reductions in those fees will shift the financial burden of growth onto municipal taxpayers.

In response to a question from the NDP about the issue, Clark said municipalities have $8 billion in development charge reserves, and he thinks that the federal government's Housing Accelerator Fund could help municipalities as well.

(C) The Canadian Press