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Deep Shergill, the new head of the Canadian Home Builders' Association, says his group will lobby all levels of government to collectively fund infrastructure upgrades. ((Courtesy CHBA))

When it comes to paying for new schools and roads in developing communities, new home buyers are paying an unfair share of the cost, the new president of the Canadian Home Builders' Association says.

Builders pay their fair share when they install infrastructure in a new community, Deep Shergill told CBC News, but developers shouldn't be expected to pay for roads and schools installed near a new community because they can be used by everyone.

"Any costs that do get added to the new home do get passed on to the consumer," Shergill said, "and that increase in price … eventually starts reflecting in the price increases in used homes and that becomes inflationary."

Builders understand municipalities are facing a lot of pressure to replacing aging infrastructure, which politicians have neglected for decades, Shergill said, but it's not fair to pass the cost largely on to new homeowners.

Shergill said his association will lobby all levels of government to work collectively to fund upgrades.