Petrolia receiving up to $2.3 million for infrastructure in exchange for eliminating development charges for three years
PETROLIA, ON, Nov. 9, 2026 /CNW/ -- Today the Governments of Canada and Ontario announced that the Town of Petrolia in recognition of its commitment to eliminate development charges for all housing types from March 30, 2026, to March 31, 2029 is receiving up to $2.3 million through the Development Charge Reduction Program (DCRP) The funding will help build more homes and community infrastructure in Petrolia while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
The elimination of development charges over the three-year period is estimated to lower the cost of building new homes in Petrolia by up to $11,695 per home.
In March 2026, Canada and Ontario agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario, with Canada's share of the funding flowing through the Build Communities Strong Fund (BCSF).
The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026, to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Petrolia up to $141,695 off the cost of a new home.
Subject to the signing of a Canada-Ontario BCSF agreement, further due diligence by both governments and the signing of an Ontario-municipal Transfer Payment Agreement, the DCRP will provide the Town of Petrolia with up to $2.3 million to support the improvement of the town's public safety and community infrastructure, including:
- upgrades to fire service equipment, fire pumper apparatus and vehicles
- improvements to parks and recreation facilities
- new equipment and vehicles for Public Works
The Town of Petrolia estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 781 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.
Delivering on the Canada-Ontario Partnership to Build, the BCSF and the DCRP are providing funding over 10 years for housing-enabling infrastructure projects. Funding is being prioritized for municipalities that reduce development charges for all residential types by 30 to 50 percent or greater and maintain the reductions for at least three years.
Quotes
"Building more homes means working together to remove barriers and create the conditions needed for more housing. Through the Build Communities Strong Fund and the Development Charge Reduction Program, we are partnering with Ontario and the Town of Petrolia to lower the cost of new housing while ensuring communities have the infrastructure they need to grow. This investment will help make more homes attainable for families in Petrolia while strengthening local communities and supporting Ontario's growing economy."
Marilyn Gladu, Member of Parliament for Sarnia--Lambton--Bkejwanong
"Rising housing costs have put the dream of homeownership out of reach for far too many in Ontario. Through the Development Charge Reduction Program, residents in Petrolia will save thousands of dollars on the cost of a new home, making homeownership more attainable for young professionals, growing families and seniors alike"
The Honourable Rob Flack, Ontario's Minister of Municipal Affairs and Housing
"I would like to express my sincere gratitude to our federal and provincial partners for their investment in Petrolia, and to our Council and staff for their continued work in identifying opportunities that support growth, strengthen our infrastructure, and improve the quality of life for our residents. This is a significant opportunity for our community. It helps encourage new housing and development while allowing us to continue planning for the infrastructure and services that growth requires. Petrolia expects to receive $2.3 million over 10 years, helping us advance important growth-related infrastructure projects while reducing the financial burden on development."
R. Brad Loosley, Mayor of Petrolia
"This investment will help reduce the upfront cost of building new homes in the Town of Petrolia. This is a great example of what we can accomplish when municipal, provincial, and federal governments collaborate to strengthen our communities. By working together, we are creating more housing opportunities, strengthening local communities, and building a more affordable future for families in the Town of Petrolia."
Bob Bailey, Member of Provincial Parliament for Sarnia-Lambton
"I would also like to extend our sincere thanks to the federal and provincial governments for recognizing the infrastructure needs of growing communities. The funding will support a range of important Town projects, including new fire pumper truck and rescue trucks; improvements to parks and recreation facilities such as tennis, pickleball and basketball courts, trails, ball fields, lighting, a multi-purpose studio at the Petrolia YMCA, equipment for parks in three new development areas, and vehicles and equipment for both Parks and Recreation and Public Works. These investments will help ensure that as Petrolia grows, we continue to provide the facilities, equipment, and services our residents expect and deserve."
Deputy Mayor/Mayor-Elect Joel Field
"We're thrilled to see this funding for Petrolia, to support the families hoping to call it home.
Reducing development charges is about making it possible to get more homes built, at prices more families can afford. OHBA has been clear that reducing the cost of delivering new homes will take meaningful action; the DCRP program continues to accomplish that."
Scott Andison, CEO of the Ontario Home Builders' Association (OHBA)
"Reducing development charges is an important step toward making new housing more attainable for families in Petrolia and across Lambton County. These charges represent a significant upfront cost to building new homes, and reducing them can make the difference between a housing project moving forward or remaining on hold. We commend the Town of Petrolia and the governments of Canada and Ontario for recognizing the need to address these costs and taking meaningful action to support new housing construction. This is a positive step for our community, prospective homebuyers, and the local economy."
Chris Kongas, Chair, Sarnia-Lambton Home Builders' Association
"RESCON commends Minister of Municipal Affairs and Housing Rob Flack as he continues to work to reduce municipal development charges and to make housing more affordable for Ontarians. Reducing DC costs in the Town of Petrolia and across Ontario's municipalities is a major step towards affordability. Premier Doug Ford and Minister Flack are leading the way on development charge reduction and regulatory reform, sales tax relief and approval process changes. RESCON fully supports these efforts by Premier Ford and Minister Flack."
Richard Lyall, President of RESCON
"Reducing development charges can significantly improve project viability and unlock greater investment in new housing. Programs like this create better conditions for more homes to move forward, including purpose-built rental housing, giving people more choice in where and how they live. We welcome continued collaboration between governments and municipalities such as Petrolia to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"OREA is thrilled to see the Town of Petrolia is taking bold action by joining the initiative to reduce costs through the Development Charge Reduction Program. This will help build more much-needed homes and critical infrastructure in the important, historical town.
At all levels, we need to bring housing affordability back within reach. Province-wide reform on development charges is key for these efforts, as OREA has called for through our advocacy campaigns and policy reports like A Pathway to Development Charge Reform."
Kim Fairley, 2026 Ontario Real Estate Association (OREA) President
Quick Facts
- Funding through the BCSF and the DCRP will support vital housing-enabling infrastructure projects, such as water/wastewater systems, roads, bridges, transit, fire stations and police detachments, along with community features to establish and enrich neighbourhoods like libraries or recreation centres.
- Federal funding for the projects is subject to the signing of the Canada-Ontario BCSF bilateral agreement, as well as federal review and approval of project funding.
- Receipt of the funding, and confirmation of approved projects, will be subject to the Town of Petrolia entering into a Transfer Payment Agreement with Ontario and complying with program requirements.
- Municipalities must contribute a minimum of 10 per cent of project costs as part of the DCRP.
- Of 444 municipalities in Ontario, more than 200 currently levy development charges.
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SOURCE Department of Housing, Infrastructure and Communities
Contacts: For more information (media only), please contact: Jenna Ghassabeh, Director of Communications, Office of the Minister of Housing and Infrastructure, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]; Michael Minzak, Minister Flack's Office, [email protected]; Communications Branch, [email protected]
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