City receiving up to $48.3 million for infrastructure in exchange for reducing development charges for three years
GUELPH, ON, Oct. 16, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that the City of Guelph is receiving up to $48.3 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 30 per cent for all housing types from March 30, 2026 to March 31, 2029. This funding will help build more homes and community infrastructure in Guelph 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 $21,623 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Guelph up to $151,623.
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. 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, Canada and Ontario will provide the City of Guelph with up to $48.3 million to support improving the City's water and wastewater infrastructure, including by:
- Upgrading the Biosolids Facility in Guelph's Water Resource Recovery Centre;
- Upgrading Verney Booster Pumping Station with a new treated-water booster pumping station, and supporting linear watermain infrastructure; and
- Constructing a new Clythe Water Treatment Plant, Booster Pumping Station, and Storage Facility, including linear water and wastewater servicing infrastructure to support regional growth.
The City of Guelph estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 27,675 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
"For far too long, we've seen the cost of housing go up. We're addressing this head-on through our Partnership to Build with the federal government, an agreement that delivers both the Development Charge Reduction Program and HST rebate. These two measures alone could save families in Guelph well over six figures, bringing the dream of homeownership further within reach for young professionals, growing families, and seniors alike."
The Honourable Rob Flack, Ontario's Minister of Municipal Affairs and Housing
"Building more homes more easily and affordably needs strong partnerships and investments. Through the Development Charge Reduction Program, we are working with the City of Guelph and Ontario to lower the cost of new housing and support the infrastructure needed to build complete, thriving communities. This investment will make housing more affordable for families in Guelph to support our growing economy."
Dominique O'Rourke, Member of Parliament for Guelph
"We've been actively working on solutions to support new housing in Guelph, and this announcement is an important part of that work. Guelph is committing to reduce development charges by 30 per cent to help encourage housing development, and this federal and provincial investment helps fund the vital water and wastewater infrastructure needed to support those new homes. It's a great example of how different levels of government can work together to support housing while continuing to invest in the services residents rely on every day. Thank you to the federal and provincial governments for making this possible."
His Worship Cam Guthrie, Mayor of the City of Guelph
"Development charges make housing more expensive. I want to thank the City of Guelph council for their strong leadership, ensuring that housing across the city becomes more affordable."
Joseph Racinsky, MPP for Wellington–Halton Hills
"We're thrilled to see this funding for the City of Guelph, 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 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 the City of Guelph 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 Guelph to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"Growing cities like Guelph will benefit greatly from this investment through the Development Charge Reduction Program (DCRP). Students, renters, and families need more housing that fits their needs, and this initiative to reduce DCs, support infrastructure, and build more homes will help with those efforts. As OREA noted in our A Pathway to Development Charge Reform policy report, DC reform is long overdue, and we are thrilled for the City of Guelph for this big step forward."
Kim Fairley, 2026 OREA President
"Today's announcement is an important step toward making housing more attainable in Guelph. Development charges have a significant impact on the cost of building new homes, so reducing those costs can help make more projects viable and move housing from the planning stage to construction. We're encouraged to see the province, the city, and the local development industry working cooperatively on solutions that can help increase housing supply and look forward to seeing the impact of this investment in our community."
Melissa Jonker, CEO, Grand Highlands Home Builders' Association
"Development charges are one of the biggest costs between a vacant lot and a family's front door. Reducing them means homes can be built at a more attainable price, and it keeps our trades, suppliers and local businesses working. This is what happens when industry and government listen to each other. We are grateful to Minister Flack for his leadership, and municipal members of government for hearing our concerns and delivering real results for homebuyers and for the people who build their homes."
Ron McMillan, President, Reid's Heritage Homes
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 Guelph 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: Piper McWilliams, Communications Advisor, Office of the Minister of Housing and Infrastructure, 819-955-1813, [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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