Niagara Construction News staff writer
Applications are being accepted for the Development Charge Reduction Program (DCRP), intended to reduce building costs and speed up the construction of new homes.
Federal and provincial funding will be provided over 10 years for housing-enabling infrastructure projects, with awards prioritized for municipalities that reduce development charges for all residential types by 30 to 50 per cent or greater and maintain the reductions for at least three years.
As of June 1, eligible municipalities can apply for funding through the DCRP. The deadline to apply is June 19.
In March 2026, Ontario and Canada agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure work across the province. The Build Communities Strong Fund was launched by the federal government earlier this year to accelerate infrastructure projects across the country to reduce costs.
“The Development Charge Reduction Program will make a life-changing difference for families in municipalities across Ontario by lowering the cost of new homes by tens of thousands of dollars,” said Rob Flack, Ontario’s Minister of Municipal Affairs and Housing. “Along with the HST relief announced in Ontario’s 2026 budget, this program will make homes across the province more affordable.
“I encourage municipal leaders across Ontario to work with us to reduce development charges so we can get more shovels in the ground and keep the dream of homeownership alive in Ontario.”
Applications will be assessed based on:
- percentage of committed DC rate reduction (minimum 30-50 per cent reduction)
- number of homes projected to build as a result of proposed DC relief
- the municipality’s financial contribution
Housing-enabling projects would be prioritized with consideration for the number of homes enabled by the project. Municipalities are strongly encouraged to be as ambitious as possible in their DC rate reductions to secure as much funding as possible for their communities.
Of 444 municipalities in Ontario, more than 200 currently levy development charges.
Several construction industry leaders support the DCRP program. Here’s what they are saying:
“The sooner municipalities can begin reducing development charges across all home types and make new projects viable, the sooner builders get more homes built. Ontario’s builders look forward to working with all municipalities to achieve our common goal of building more homes for Ontario families at a price they can afford.”
Scott Andison, CEO, Ontario Home Builders’ Association (OHBA)
“This historic initiative provides municipalities with the opportunity to rapidly increase housing supply by aligning development charge relief, infrastructure investment, and government partnership. Lowering development charges will help address the economic viability challenges that has stalled housing development across the GTA in recent years. Through this initiative, municipalities and industry working in partnership, can accelerate shovel-ready communities while ensuring that the building and development industry continues to provide well-paying jobs and is an engine of economic growth.”
Dave Wilkes, President and CEO, BILD
“For the first time in a long time, the industry is starting to see the kind of coordinated action from governments that can genuinely help restart housing supply. The combination of HST relief and meaningful infrastructure and development charge support has the potential to improve project viability, support affordability, and help get shovels back in the ground. Municipalities also have a critical role to play, and we strongly encourage local governments to work alongside the province and federal governments to create conditions that support housing construction, attainability and jobs.”
Dani Gabriele, Chair of the West End Home Builders Association
“The province’s continued investments in housing-enabling infrastructure are essential to supporting growing demand, addressing infrastructure gaps, and helping communities of all sizes manage growth. Support for both large-scale housing infrastructure projects and targeted funding for small and rural municipalities will help move these projects forward while creating and sustaining skilled trades jobs across Ontario.”
Patrick McManus, Executive Director, Ontario Sewer and Watermain Construction Association
