June 11, 2025

The extension of Montréal’s Blue Metro Line marks a significant turning point for public transit and real estate development in the city. On May 28, 2025, a new regulation was announced to impose a transportation fee on certain construction work carried out nearby. This fee is intended to help finance part of the construction costs of the Blue Line.

What does the Règlement concernant la redevance de transport à l’égard du prolongement de la ligne bleue du métro de Montréal (the “Regulation”), which came into force on June 11, 2025, mean for owners and developers of affected properties? What are the issues and implications?

It is important to be reminded that this sector has been identified as one that could accommodate 25,000 new housing units in the coming years, according to projections shared by the City of Montréal ¹ , and that a similar fee was introduced in 2018 for projects near the Réseau express métropolitain (REM).

What construction work is subject to the fee?
For construction work to be subject to the fee, three (3) conditions must be met.

First, the project must be in one of the zones identified in the Regulation, which correspond to a one-kilometre radius around each of the stations affected by the Blue Line extension: Pie-IX, Viau, Lacordaire, Langelier, and Anjou.

Second, the transportation fee applies to construction work where the project’s value exceeds $935,322 and the floor area surpasses 186 m². It should be noted that the value threshold is indexed annually.

Finally, the work must involve one of the following: the construction of a building; the reconstruction of a building (unless it follows a disaster that occurred within the previous 24 months); an increase in the building’s floor area; or a redevelopment that results in a change of use to one of the following categories: residential housing; commercial and service use; office space; tourist accommodation or meeting venue; public or institutional facility; industrial use or parking.

The Regulation provides certain exemptions from this requirement, including projects that involve the construction of affordable or social housing, or housing intended for people in need of support, protection, care, or shelter.

The Act respecting the Autorité régionale de transport métropolitain also establishes exceptions, particularly for public organizations, non-profit organizations, and early childhood centres.

How and when is the fee paid?
The fee rate is set at $132/m² for 2025. This amount is also indexed annually.

The debtor of the fee is the property owner (or any similar party, such as an emphyteuta, usufructuary, superficies rights holder, or syndicate of co-owners). This party must pay the fee upon the issuance of the building permit, to the municipality, which collects the amount on behalf of the Autorité régionale de transport métropolitain (ARTM).

Sanctions
Failure to comply with the Regulation is considered an offense and may result in fines ranging from $250 to $20,000, depending on whether the offender is an individual or a corporation, and whether it is a repeat offense. Since the municipality is responsible for collecting the fee before issuing the permit, it may also refuse to issue the permit until the fee is fully paid.

Implications for property owners and developers
Although this Regulation is essential for financing the Blue Line extension, it raises several issues that could impact players in the real estate market. First, its financial impact is significant: adding a transportation fee increases the cost of construction and renovation projects, which can affect investment profitability. In a context where housing needs are urgent, and given the many other challenges developers already face, this added cost represents a financial burden that could jeopardize new development initiatives in a sector undergoing revitalization and densification.

Additionally, any developments subject to the fee will inevitably be affected in terms of affordability for buyers or tenants.

Lastly, the Regulation introduces administrative complexity, as each project in the area will need to undergo careful verification to determine whether it is subject to the fee, with potential adjustments depending on the nature of the work carried out.

¹ Le Devoir, May 27 2025. Des redevances imposées aux promoteurs pour financer le prolongement de la ligne bleue, https://www.ledevoir.com/societe/transports-urbanisme/884392/artm-imposera-redevances- promoteurs-financer-prolongement-ligne-bleue.

By Audrey Robitaille, associate Bruno Fraticelli, lawyer and Louisa Kouretas, student