Canada and Ontario Making Homes More Affordable in Essex County

Regional and local municipalities receiving up to $105.8 million for infrastructure in exchange for reducing or eliminating development charges for up to four years

ESSEX, ON, Oct. 23, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that regional and local municipalities in the County of Essex will receive up to $105.8 million through the Development Charge Reduction Program (DCRP) in recognition of their commitment to reduce or eliminate development charges for all housing types from March 30, 2026, to December 31, 2030, depending on the municipality. The funding will help build more homes and community infrastructure 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 in Essex County over the relief period is estimated to reduce the cost of building new homes by up to $40,862 per home, depending on the municipality, which includes reductions at both the upper and lower tiers.

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 through the DCRP, these initiatives could save families across the region up to $170,862 off the cost of a new home.

Construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 36,372 new homes in Essex County, 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 following funding to support housing – enabling infrastructure projects:

• Up to $51.2 million for Essex County for eliminating development charges for all housing types in 2026 and 2027 and reducing development charges by 75 per cent in 2028, 50 per cent in 2029 and 25 per cent in 2030.
• Up to $25.4 million for the Town of LaSalle for eliminating development charges for all housing types from March 30, 2026, to March 31, 2029, including in the Reaume Sanitary Service Area.
• Up to $8.8 million for the Town of Essex, up to $11.8 million for the Municipality of Lakeshore and up to $8.4 million for the Town of Kingsville for reducing development charges by 50 per cent for all housing types from March 30, 2026, to March 31, 2029.

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

"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 Essex County 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 Essex County and support Ontario's growing economy."

Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax

"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 alongside our federal partners, which helps provide growing municipalities with the funding they need to ensure their communities remain a desirable place to live, work and raise a family." 

The Honourable Rob Flack, Ontario's Minister of Municipal Affairs and Housing

"This investment will help municipalities across Essex County reduce the cost of building new homes. This is a great example of what we can accomplish when municipal, provincial, and federal governments collaborate to strengthen our communities and build a better future for the people who call them home."

Anthony Leardi, MPP, Essex

"Essex County is growing, and our government is investing in the infrastructure needed to support that growth. Thanks to Premier Ford's leadership, these investments will help families find a place to call home, create good-paying jobs, and strengthen communities across our region."

Andrew Dowie, MPP, Windsor-Tecumseh

"Our government is committed to making homeownership more attainable while ensuring our communities have the infrastructure they need to grow. This investment will help municipalities across Essex County build the roads, sewers and essential infrastructure needed to support new housing, while reducing the upfront costs of building a home.  By working together with our federal and municipal partners, we are creatingmore housing opportunities, strengthening our local communities, and building a more affordable future for families across Essex County."

Trevor Jones, MPP, Chatham-Kent-Leamington

"Building more homes requires investment in the infrastructure that supports them. This funding will help our municipalities accommodate growth, create more housing opportunities and support job creation and economic development across Essex County. We thank the Province of Ontario and the Government of Canada for working with our local communities to address housing needs and invest in our region's future."

Her Worship Hilda MacDonald, Warden, Essex County

"The Town of Essex is excited about the opportunity to work with our provincial and federal partners to support future housing growth in our community. As our community continues to grow, investments in critical infrastructure are essential to ensuring we can meet the needs of current and future residents. We look forward to working together to help create more housing opportunities while building a strong, sustainable future for Essex."

Her Worship Sherry Bondy, Mayor, Town of Essex

"This investment builds upon the incredible success we have seen in recent years as we advance critical wastewater treatment infrastructure serving Lakeshore's eastern communities. The funding will further reduce financial pressure on our taxpayers, protect the environment and support new housing for residents of all ages while ensuring Lakeshore continues to grow responsibly and sustainably. We are grateful to the Province of Ontario and the Government of Canada for their continued partnership with Lakeshore, as well as municipalities across the province, as we work together to find solutions and deliver the infrastructure that our communities need."

Her Worship Tracey Bailey, Mayor, Municipality of Lakeshore

"This investment by the Ontario and federal governments will provide significant support for critical infrastructure in our community. We have a strong working relationship with our local MPP, Anthony Leardi, and our continued advocacy for Kingsville is delivering results. This funding will support our current residents, while enabling new housing for those who want to call Kingsville home. By working together with our provincial and federal partners, we can achieve great things for our community."

His Worship Dennis Rogers, Mayor, Town of Kingsville

"Responsible growth means making sure the infrastructure is in place to support the homes and families coming to our community. This investment will help LaSalle move important infrastructure forward while reducing barriers to new housing and protecting the long-term interests of our residents. We appreciate the partnership of the provincial and federal governments and their recognition that municipalities need meaningful infrastructure investment to build complete, sustainable communities."

Her Worship Crystal Meloche, Mayor, Town of LaSalle

"This funding is great news for both Essex County 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, OHBA

"Everyone who wants to own a home deserves the chance to own one. We're grateful to the provincial government and to Minister Flack for continuing to listen and for recognizing that the cost of building has a direct line to the cost of living. This is one more step toward making home ownership a reality for more Ontario families. Our members are ready to get shovels in the ground faster and build more homes."

Melissa Schenk, CEO, Windsor-Essex 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 Essex County 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, 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 to reduce barriers, support growth and help increase housing supply across Ontario."

Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario

"The Governments of Ontario and Canada have taken bold action on housing lately, investing and encouraging the building of more homes and robust infrastructure through the Development Charge Reduction Program. As OREA noted in our A Pathway to Development Charge Reform policy report, province-wide DC reform needs to happen if we want to bring housing affordability back. We are thrilled to see Essex County join in this initiative, which will help build more homes in the community without increasing other costs."

Kim Fairley, 2026 OREA President

"Reducing development charges is a practical step toward making homeownership more attainable for families across Essex County. We applaud the Ontario government for supporting municipalities in lowering these costs and helping builders move more homes from planning to construction. At BK Cornerstone, we see this investment as an investment in the next generation and the communities they will call home." 

Brent Klundert, President, BK Cornerstone Design Build Ltd.

Quick Facts

• For reducing development charges by 50 per cent for all housing types from March 30, 2026, to March 31, 2029, the Town of Tecumseh is receiving up to $6.8 million.
• Windsor will receive up to $77.6 million for reducing development charges by 70 percent for all housing types from March 30, 2026, to March 31, 2029.
• Funding through the DCRP and the BCSF 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 BCSF 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 each municipality 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]; Michael Minzak, Minister Flack's Office, [email protected]; Communications Branch, Ministry of Municipal Affairs & Housing, [email protected]