City receiving up to $11.3 million for infrastructure in exchange for reducing development charges for three years
ORILLIA, ON, Oct. 16, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that the City of Orillia is receiving up to $11.3 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 Orillia 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 $15,791 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Orillia up to $145,791.
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.
The City of Orillia estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 2,025 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, Canada and Ontario will provide the City of Orillia with up to $11.3 million to support the expansion and modernization of the City's existing Wastewater Treatment Centre.
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
"As communities across Ontario continue to grow, they need the right infrastructure in place to support new homes and the families who will call them home. Through the Development Charge Reduction Program, we're working with our federal and municipal partners to lower the cost of building new homes while investing in the infrastructure communities like Orillia need to remain great places to live, work and raise a family."
The Honourable Graydon Smith, Associate 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 Orillia 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 Orillia and support Ontario's growing economy."
Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax
"This $11.3 million investment through the DCRP is welcome news for our city. As the community continues to grow, this funding will help support the infrastructure needed to meet current and future housing demands. We thank the province for its ongoing commitment to strengthening municipalities across Ontario."
His Worship Don McIsaac, Mayor of Orillia.
"This major investment in the City of Orillia's future is welcome news for local families, businesses, and residents, and will deliver lasting benefits for generations to come. By reducing development charges, we are helping make it easier to build much-needed homes, attract new residents, and create opportunities for young families and seniors to remain in the community they call home. This funding will also support essential infrastructure, create local jobs, and strengthen our economy while ensuring Orillia has the services needed to accommodate future growth. Our government is proud to work alongside our municipal and federal partners to build a stronger, more affordable and thriving community for years to come."
Jill Dunlop, MPP for Simcoe North
"We're thrilled to see this funding for the City of Orillia, 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
"Making homes more affordable requires meaningful action on the cost of building them. SCHBA welcomes this investment in Orillia through the Development Charge Reduction Program. It is an important step toward reducing costs, supporting much-needed housing and helping more families find a home in our community. We look forward to continued collaboration with the province and the City of Orillia to keep housing moving forward."
Sandy Tuckey, CEO, Simcoe County 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 the City of Orillia 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 Orillia to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"As OREA outlined in our A Pathway to Development Charge Reform policy report, DC reform across the province is essential if we want to build more much-needed homes and infrastructure without increasing other costs. Reducing DCs in order to incentivize more housing development is a big step in the right direction and we commend the City of Orillia for taking bold action. This funding through the Development Charge Reduction Program is key to unlocking more housing supply in the community."
Kim Fairley, 2026 OREA President
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 Orillia 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]; Rachel Hogeveen, Office of Associate Minister of Municipal Affairs and Housing Graydon Smith, [email protected]; Communications Branch, Ministry of Municipal Affairs & Housing, [email protected]
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