City receiving $572 million for infrastructure in exchange for eliminating development charges for three years
HAMILTON, ON, Aug. 26, 2026 /CNW/ -- Today, the governments of Ontario and Canada announced that the City of Hamilton is receiving $572 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to eliminate development charges on all residential developments from March 30, 2026, to March 31, 2029. The funding will help build more homes and community infrastructure in the City of Hamilton while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
The complete removal of development charges over the three-year period is estimated to reduce the cost of building new homes by up to $100,442 per home. When combined with the up to $130,000 in savings enabled through the removal of the HST on new homes, these initiatives could save Hamilton families up to $230,000 off the cost of a new home.
In March 2026, the Government of 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 remove the full HST on 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 Hamilton estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock over 31,000 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.
The elimination of development charges will take effect following approval by Hamilton City Council and must remain in effect for three years. 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 Hamilton with up to $572 million to support infrastructure projects in communities across Hamilton that will unlock housing, including:
- Widening and reconstructing Barton Street (Fruitland Road to Fifty Road) to a five-lane multi-modal arterial road
- Reconstructing Lewis Road (Highway 8 to Barton Street) to an urban standard multi-modal collector road
- Widening Rymal Road (Glancaster Road to Upper Paradise Road and from Upper James Street to Dartnall Road, south of Hamilton Mountain) to a five-lane urban arterial corridor
- Widening and reconstructing Garner Road (Wilson Street to Glancaster Road in Ancaster) to a five-lane urban arterial corridor
- Expanding the Woodward water/wastewater treatment plant
- Upgrading the capacity of the Greenhill Water Pumping Station.
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
"We're making historic investments in Hamilton to lower costs for families, keep workers on the job and get more homes built faster. Today's investment will support new transportation and housing infrastructure across the city, enabling the construction of tens of thousands of new homes. Congratulations to Mayor Horwath and Hamilton City Council for demonstrating incredible leadership and working with us to bring the dream of home ownership in reach for Hamilton families."
The Honourable Doug Ford, Premier of Ontario
"Together, we're building Ontario and Canada strong. By partnering with Ontario, the federal government is helping speed up housing construction by lowering up front costs and investing in housing-enabling infrastructure projects – building strong, resilient communities that boost housing supply and drive economic opportunities."
The Honourable Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions)
"Canadian families are concerned about the cost of housing. The Government of Canada is working collaboratively with provinces, municipalities and homebuilders to directly reduce the price of new homes. Together, we are cutting government fees, getting more homes built, supporting thousands of good paying local homebuilding jobs, and investing in the roads, water, parks and other local infrastructure necessary for new development."
John-Paul Danko, Member of Parliament for Hamilton West--Ancaster--Dundas
"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 municipalities like Hamilton with the funding they need to ensure their city remains a desirable place to live, work and raise a family."
Rob Flack, Minister of Municipal Affairs and Housing
"This is a historic investment in Hamilton's future and one I have worked hard as Mayor to make happen. It represents the single largest investment in roads, water and wastewater infrastructure in our city's history, and I welcome the support of our provincial and federal partners. We know Hamilton needs more housing. That means creating the conditions to get more homes built, support local construction and get people back to work, while making housing more affordable for Hamiltonians. By eliminating residential development charges for three years and investing in the infrastructure our growing communities need, we can get shovels in the ground, increase housing supply and reduce costs for people looking to call Hamilton home."
Andrea Horwath, Mayor of Hamilton
"Today's announcement is a major win for Hamilton families, workers, and businesses. By eliminating residential development charges and investing in the infrastructure needed to support growth, we are removing barriers to build more homes and create opportunities for local workers. Through Premier Ford's leadership, our government is making it more attainable for people who work in Hamilton to build a future here and call our city home."
Monica Ciriello, Member of Provincial Parliament for Hamilton Mountain and Parliamentary Assistant to the Attorney General
"By helping cut Development Charges in Hamilton, Ontario's government is protecting families and workers in Hamilton who are working to achieve the dream of home ownership. Tens of thousands of dollars will stay in workers' pockets, while we simultaneously fund infrastructure the City of Hamilton needs to get more homes built. This is good news for local jobs and growth, supporting the growing population of the city."
Sam Oosterhoff, Member of Provincial Parliament for Niagara West and Associate Minister of Energy-Intensive Industries
"Hamilton is a great place to live and raise a family, but the cost of delivering new housing has made it increasingly difficult to bring projects to market at prices buyers can afford. Today's announcement tackles both sides of that challenge: lowering the cost of building while investing in the roads, water and wastewater infrastructure needed to support new communities. As a local builder, I know what a difference that can make in determining whether homes get built. This is a meaningful investment in Hamilton's future and in the people and families who want to call this community home."
Dani Gabriele, Chair, West End Home Builders' Association, and Marz Homes
"This is exactly the kind of action Ontario's housing market needs. Development charges have become one of the largest upfront costs of building a new home, and reducing them while investing directly in the infrastructure needed to support growth is a much more sustainable approach. Hamilton's participation in the Development Charge Reduction Program will make a meaningful difference to project viability, housing affordability and the ability to get more shovels in the ground. We commend the governments of Ontario and Canada, and the City of Hamilton, for working together on a solution that lowers the cost of building while ensuring communities have the infrastructure they need to grow."
Scott Andison, CEO, Ontario Home Builders' Association
"Today's announcement is a significant and welcome step toward improving affordability, accelerating new housing supply and ensuring the infrastructure needed to support growing communities continues to be built. Just as importantly, these savings must reach homebuyers directly, not stop at the development stage. We welcome the strong consumer protections built into the program to ensure that happens. Cornerstone has consistently advocated to all levels of government to reduce development charges and remove barriers to attainable housing, and we are pleased to see governments working together to deliver meaningful action."
Sandra Longden, Chair-Elect, Cornerstone Association of REALTORS
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 Hamilton 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, [email protected]
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