Ontario Launches New Program to Cut Development Charges and Accelerate Homebuilding

The Ontario government has opened applications for a new funding initiative designed to lower construction costs and help speed up the delivery of new housing across the province.

The new Development Charge Reduction Program (DCRP) will provide provincial and federal funding over the next decade to support housing-enabling infrastructure projects. Municipalities that commit to reducing development charges on all residential housing types by at least 30%—and maintain those reductions for a minimum of three years—will receive priority consideration for funding.

The program forms part of a broader federal-provincial housing agreement announced in March, which will deliver a combined $8.8 billion in infrastructure and housing-related investments over 10 years. Federal funding will be provided through the Build Communities Strong Fund, subject to a final agreement.

Municipal applications will be evaluated based on several factors, including the size of the development charge reduction, the number of new homes expected to result from the relief, and the municipality’s financial contribution toward the initiative. The province is encouraging municipalities to pursue the largest reductions possible in order to maximize available funding.

Eligible municipalities can now apply for the program, with applications being accepted until June 19. The timing aligns with the recently enhanced HST rebate program, allowing builders and homebuyers to benefit from multiple cost-saving measures.

Additional funding opportunities under the Canada-Ontario Partnership to Build are expected to be announced for rural, northern, and smaller municipalities in the coming months.