Peterborough receiving up to $39.9 million for infrastructure in exchange for reducing development charges for three years
PETERBOROUGH, ON, Nov. 9, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that the City of Peterborough is receiving up to $39.9 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 50 per cent for residential developments from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure in Peterborough while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
The reduction in development charges over the three-year period is estimated to reduce the cost of building new homes in Peterborough by up to $34,302 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Peterborough up to $164,302.
In March 2026, Ontario and the federal government 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. This is in addition to cost reductions for builders through the DCRP.
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 City of Peterborough with up to $39.9 million to support the improvement of the City's roads and water infrastructure, including through the:
- Construction of a sanitary forcemain along the Otonabee River, a replacement trunk sanitary sewer on South Park Drive, two sanitary pumping stations, a trunk sewer to the city's wastewater treatment plant, and a looped trunk watermain system.
- Roadway reconstruction and widening of existing four lane corridors to five lanes, including replacement and increased capacity for storm servicing, wastewater servicing, and water servicing.
The City of Peterborough estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 9,276 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 per cent or greater and maintain the reductions for at least three years.
Quotes
"Our government is committed to making housing more affordable by working with partners to remove barriers to building more homes. Through the Build Communities Strong Fund and the Development Charge Reduction Program, we are investing alongside Ontario and the City of Peterborough to lower development costs and support the infrastructure needed to build thriving communities. This investment will help make more homes attainable for families in Peterborough, while supporting local growth and creating a stronger future for the community."
Emma Harrison, Member of Parliament for Peterborough
"Today's investment is great news for Peterborough residents, supporting the construction of thousands of homes and saving families more than $34,000 off the cost of a new home. Congratulations to outgoing Mayor Jeff Leal, as well as Peterborough council members, for working with us to bring the dream of home ownership within reach for Peterborough families. I look forward to working with incoming Mayor Michael Eamon as we continue to deliver on that mission."
The Honourable Doug Ford, Premier of Ontario
"Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities. That is why our government continues to deliver programs like the Development Charge Reduction Program, which helps position communities for future growth."
The Honourable Rob Flack, Minister of Municipal Affairs and Housing
"This partnership with the provincial and federal governments is an important step in preparing Peterborough for continued growth and creating more housing options for residents. It's a significant investment in Peterborough's future with the potential to support the construction of more than 9,200 new homes in our community. This funding will help advance significant infrastructure projects across the city, while the development charge reduction will help lower the cost of building new homes. As our community grows in population, the investment will help ensure that our roads and water and wastewater systems have the capacity to grow with it."
Jeff Leal, Mayor of Peterborough
"This is a significant investment in Peterborough's future. By reducing development charges by 50 per cent and investing up to $39.9 million in critical infrastructure, we're helping lower the cost of building homes, unlock the potential for 9,276 new homes and support local economic growth. Our government is taking concrete action to remove barriers to housing, get projects moving and ensure Peterborough has the infrastructure needed to grow. We're delivering results that will benefit families, workers and our community for years to come."
Dave Smith, MPP for Peterborough--Kawartha
"This funding is great news for both the City of Peterborough, and for 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 OHBA
"The Development Charge Reduction Program is already making a real, measurable impact in the Peterborough and Kawarthas region. Parkview Homes' advancement of new housing in the Mapleview community shows exactly what happens when government policy aligns with the realities of building. Cutting development charges by 50% removes a major barrier to getting homes started, and Mapleview is proof that this approach works. This program is helping builders move projects forward faster, supporting affordability, and delivering the new housing supply that the Peterborough and Kawarthas region urgently needs."
Sol Zia, CEO, Peterborough & The Kawarthas 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 City of Peterborough 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 Peterborough to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"Across Ontario, municipalities are stepping up to the plate, addressing development charges (DCs), and being rewarded for their efforts. The investment from the federal and provincial governments to reduce DCs in Peterborough through the Development Charge Reduction Program (DCRP) is exactly what OREA called for in its advocacy efforts, such as through our A Pathway to Development Charge Reform policy report. This will help build more much-needed homes in Peterborough and the surrounding community."
Kim Fairley, 2026 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 City of Peterborough 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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Web: Housing, Infrastructure and Communities Canada
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]; Hannah Jensen, Premier's Office, [email protected]; Michael Minzak, Minister Flack's Office, [email protected]; Communications Branch, Ministry of Municipal Affairs & Housing, [email protected]
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