Ontario program opens stream for municipalities without development charges

The federal and provincial governments are paying for local infrastructure so municipalities can charge home builders less. Storeys reported that the Non-DC Stream, for municipalities that levy no development charges, began taking applications on October 29, 2026. The wider Development Charge Reduction Program has taken applications since June 1.

Development charges are fees municipalities levy on new construction to fund infrastructure. Under the program, the two governments provide funding over 10 years for housing-enabling infrastructure, and municipalities lower the charges. Funding is prioritized for municipalities that cut charges on all residential types by 30% to 50% or more.

Announced agreements total $2.2 billion, including $572 million for Hamilton and $697.2 million for Vaughan. In most agreements, local governments cut charges by 30% to 100% from March 30, 2026 to March 31, 2029.

Sources: Storeys