City receiving up to $401.4 million for housing-enabling infrastructure in exchange for reducing and eliminating development charges over four years
MISSISSAUGA, ON, Sept. 3, 2026 /CNW/ -- Today, the Governments of Ontario and Canada announced that the City of Mississauga is receiving up to $401.4 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 January 29, 2025, to March 31, 2029.
Furthermore, Mississauga is eliminating development charges altogether on rental units with one-bedroom plus den, two or three bedrooms until March 31, 2029. The funding recognizes Mississauga's early leadership in reducing development charges. It will help build more homes and community infrastructure while advancing the province's plan to protect Ontario by investing in projects that lower costs for families, support economic growth and keep workers on the job.
The reduction in development charges over this four-year period is estimated to reduce the cost of building new homes by up to $36,140 per home. When combined with the up to $130,000 in savings enabled through the expanded HST relief on eligible new homes, these initiatives could save Mississauga families up to $166,140 off the cost of a new home.
In March 2026, the Governments 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 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.
Mississauga estimates that the construction cost savings over the development charge elimination and reduction period, along with the investment in housing-enabling infrastructure, would unlock 90,000 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 Mississauga with up to $401.4 million to support housing-enabling infrastructure projects, including:
- Constructing a new zero-emission transit maintenance and storage facility in northwest Mississauga, including a bus storage area, maintenance garage and associated infrastructure;
- Delivering integrated transit infrastructure in downtown Mississauga, including the Transit Mobility Hub, transitway connections, bus platforms, pedestrian and cycling facilities, utility relocations, as well as infrastructure that supports retail, office, housing, and surrounding development.
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 per cent to 50 per cent or greater and maintain the reductions for at least three years.
Quotes
"In the face of President Trump's latest tariffs, we're working with all levels of government to lower costs for families, keep workers on the job and get shovels in the ground faster on new homes. Mayor Parrish and Mississauga council were early leaders in lowering development charges and with today's announcement of new provincial and federal funding for housing-enabling infrastructure, we're continuing our progress to make homes more affordable for families in Mississauga and across Ontario."
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."
Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax
"Building the homes Canadians need takes collaboration at every level. Through the Development Charge Reduction Program, the Government of Canada is working alongside Ontario and the City of Mississauga to help reduce the costs of new housing and support the infrastructure needed to accommodate growth. This investment will help turn plans into new homes, strengthen local communities and create more opportunities for Canadians to find a place to call home."
Peter Fonseca, Member of Parliament for Mississauga East--Cooksville
"Everyone deserves a safe, affordable place to call home. Through the Building Communities Strong Fund, we are partnering with the Ontario Government to reduce development charges and make critical infrastructure investments. The funds allocated to the City of Mississauga will lower costs and speed up construction to get more Mississaugans into homes that meet their needs at prices they can afford."
Charles Sousa, Member of Parliament for Mississauga- Lakeshore
"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 cities like Mississauga with the funding they need to ensure their city remains a desirable place to live, work and raise a family. Congratulations to Mayor Parrish and the Mississauga City Council for working with us to bring the dream of homeownership within reach for more Mississauga families."
Rob Flack, Minister of Municipal Affairs and Housing
"Ontario families deserve to live in homes that meet their needs, at a price they can afford. That is why it is important that we decrease the cost of new homes by cutting taxes and fees and simultaneously build infrastructure to accommodate future growth. By investing over $400 million into Mississauga for infrastructure and transit projects, we are removing barriers for growth and supporting families in Mississauga."
Sheref Sabawy, MPP, Mississauga--Erin Mills
"Making homeownership more attainable for families requires action to reduce the cost of building homes while ensuring our communities have the infrastructure needed to grow. Through the Development Charge Reduction Program, our government is supporting Mississauga's efforts to lower development charges and unlock new housing, while investing in the infrastructure needed to support growing communities. These investments will help create more housing options, strengthen our communities and support greater affordability for families across Mississauga."
Deepak Anand, MPP, Mississauga--Malton
"Families in Mississauga are working hard to build a future here and they deserve a fair shot at owning a home or finding a quality place to rent. Reducing development charges helps bring down the cost of building new homes, and this funding means we can invest in the transit and infrastructure needed to support the neighbourhoods we are building. I am proud to see Mississauga's leadership recognized and all levels of government taking a Team Canada approach to support housing in our community."
Silvia Gualtieri, MPP, Mississauga East--Cooksville
"Mississauga is a growing community, and we need to make sure families can find homes they can afford while having the infrastructure and services they rely on. This investment will help lower the cost of building new homes, support critical transit and community infrastructure, and help get more shovels in the ground. I'm proud to see our government working with our federal and municipal partners to deliver meaningful results for families across Mississauga."
Nina Tangri, MPP for Mississauga--Streetsville and Associate Minister of Small Business
"Today's announcement is great news for Mississauga. Through Premier Ford's leadership, our government is lowering the cost of building new homes while ensuring the necessary investments are made in building critical infrastructure. This will bring the dream of home ownership to more people and keep Mississauga as a great place to live, work and raise a family."
Natalia Kusendova-Bashta, Minister of Francophone Affairs, Minister of Long-Term Care and MPP for Mississauga Centre
"Our government's historic investment of over $400 million in housing-supportive infrastructure in Mississauga builds on Mayor Parrish's forward-thinking leadership in reducing development charges and lowering the cost of building new homes. Combined with our government's HST relief, these measures could save local families over $160,000 on a new home, while helping get shovels in the ground to unlock 90,000 new homes across Mississauga, including in transformative waterfront communities like Brightwater and Lakeview Village. By working together with our federal and municipal partners, we're helping ensure the next generation can achieve the dream of homeownership and build their future in vibrant, affordable communities."
Rudy Cuzzetto, Parliamentary Assistant to the Minister of Energy and Mines, MPP for Mississauga-Lakeshore
"This is great news for the people of Mississauga – especially for those looking to buy a home, for those looking for a reasonably priced apartment, and for workers in the construction sector. This significant funding from our provincial and federal partners will facilitate our investments in local transit and in critically needed infrastructure. We have led on cutting development charges. We are proud of that leadership."
Mississauga Mayor Carolyn Parrish
"The Building Industry and Land Development Association welcomes the announcement today by the federal and provincial governments regarding the significant infrastructure investment for the City of Mississauga in recognition of the city's commitment to reduce development charges and the cost to build. Mayor Parrish and City Council have been leaders in advancing efforts to accelerate housing supply and economic opportunities and have repeated these initiatives for over a year. We applaud the provincial and federal governments for recognizing that today's meaningful contribution will help improve new housing project economic viability, and our members look forward to continuing to get shovels in the ground and welcoming future homeowners in the communities that they are proud to build in Mississauga."
Dave Wilkes, President and CEO, Building Industry and Land Development Association
"As both a builder and a proud Mississauga resident, I know how important today's announcement is for our city and for 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 restoring housing affordability will take meaningful action to reduce the cost of delivering new homes. We commend the governments of Ontario and Canada, in partnership with the City of Mississauga under the leadership of Mayor Parrish, for this investment, which is exactly the kind of coordinated action we need to unlock new housing and help more Ontario families achieve the dream of homeownership."
Christina Giannone, Sr. Vice-President, Fram + Slokker
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 Mississauga 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] | 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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