City receiving up to $129 million for infrastructure in exchange for reducing development charges for three years
BARRIE, ON, Sept. 28, 2026 /CNW/ -- Today, the Governments of Ontario and Canada announced that the City of Barrie is receiving up to $129 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 Barrie 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 this three-year period is estimated to reduce the cost of building new homes by up to $62,223 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Barrie up to $192,223.
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. The City of Barrie estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 23,364 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.
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 Barrie with up to $129.2 million to support the improvement of the City's wastewater treatment facility infrastructure, including:
- constructing a new digester and integrating it into the existing solids treatment train
- converting the existing biological system and replacing the existing site electrical infrastructure
- constructing a new, advanced nutrient removal treatment train.
As part of the Canada-Ontario Partnership to Build, the DCRP is delivering 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
"Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities. This is why our government continues to deliver programs like the Development Charge Reduction Program alongside our federal partners, which helps provide cities like Barrie with the funding they need to ensure their community remains a desirable place to live, work and raise a family."
Rob Flack, Minister of Municipal Affairs and Housing.
"Building more homes requires strong partnerships and investments that make it easier and more affordable to build. Through the Development Charge Reduction Program, we are working with Ontario and the City of Barrie to reduce the cost of new housing while supporting the infrastructure needed to build complete, thriving communities. This investment will help make homebuilding more affordable for families in Barrie and support Ontario's growing economy."
Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax
"This is a game changer for Barrie and will give more Barrie residents an opportunity to own a home," said Alex Nuttall, Mayor of the City of Barrie. "By reducing the cost of building new homes, we are making housing more attainable while creating more opportunities for the skilled tradespeople and local businesses who build our community. I want to thank the Ontario government for their continued partnership with the City of Barrie. This is what leadership looks like: working together to build more homes, support our trades and create opportunity for Barrie residents."
Alex Nuttall, Mayor of the City of Barrie.
"Barrie is growing, and we want to make sure that growth comes with more opportunities for families to find a place they can call home. By eliminating development charges on residential development, the City of Barrie is taking meaningful action to help reduce the upfront cost of building new homes. Our government is proud to recognize that commitment with up to $129 million through the Development Charge Reduction Program, helping support more housing and a stronger future for Barrie."
Doug Downey, MPP for Barrie--Springwater--Oro-Medonte
"Today's announcement is great news for the City of Barrie, and for the families hoping to call it home. Reducing development charges is about more than just lowering construction costs. It's 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 does that."
Scott Andison, CEO of the OHBA
"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 Ontario municipalities is a major step towards affordability. Premier Doug Ford and Minister Flack have led 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
"The Building Industry and Land Development Association (BILD) welcomes the announcement today by the Federal and Provincial governments regarding the significant infrastructure investment for the City of Barrie in recognition of the City's commitment to reduce development charges and the cost to build. Since August of 2025 with the introduction of a DC waiver, and then again this month with a residential development charge reduction of 50 percent, Mayor Nuttall and City Council have been leaders in advancing efforts to accelerate housing supply and economic opportunities! These changes will immediately improve project viability and our members look forward to continuing to get shovels in the ground and welcoming future homeowners to Barrie. We applaud the provincial and federal governments for recognizing that today's meaningful contribution will support housing supply, local jobs, growth, and new homebuyers!"
Dave Wilkes, President and CEO of BILD
"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 Barrie to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"I'm thrilled to see the latest efforts from our federal and provincial governments to reduce development charges across Ontario through the Development Charge Reduction Program. OREA advocated for an initiative just like this in our A Pathway to Development Charge Reform policy report, and we commend our leaders for heeding our calls to bring affordability back within reach. These initiatives will help lower housing construction costs, get more homes built, and deliver the infrastructure necessary to support growing communities."
Kim Fairley, 2026 OREA President
"Housing starts with infrastructure, and tackling Ontario's housing challenge requires all orders of government to work together. Investments through the DCRP will help communities build the critical infrastructure that enables growth, giving homebuilders the certainty and support they need to deliver the homes families in Ontario are counting on. We encourage municipalities across the province to take advantage of this opportunity and join us in building more homes, faster."
Brad Carr, CEO, Mattamy Homes Canada
Quick Facts
- Funding through 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 Barrie 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: Arianna Durgerian, Press Secretary, 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, Ministry of Municipal Affairs & Housing, [email protected]
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