City receiving up to $19.6 million for infrastructure in exchange for reducing development charges for three years
ST. THOMAS, ON, Oct. 15, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that the City of St. Thomas is receiving up to $19.6 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 30 per cent for single-detached homes and multi-unit housing, and 50 per cent for remaining unit types from March 30, 2026 to March 31, 2029.
The funding will help build more homes and community infrastructure in St. Thomas 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 in St. Thomas by up to $5,961 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in St. Thomas up to $135,961.
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 St. Thomas with up to $19.6 million to support the design and construction of a new wastewater treatment facility.
The City of St. Thomas estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 6,196 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
"Alongside our federal and municipal partners, our government is creating the conditions to ensure communities like St. Thomas can continue to grow and thrive. As MPP for Elgin-Middlesex-London, I am proud of the tremendous quality of life this area has to offer. Investments like this will help St. Thomas continue to grow as a strong, vibrant community where more people can put down roots, build a future and raise a family for generations to come."
The Honourable Rob Flack, Ontario's 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 St. Thomas 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 St. Thomas and support Ontario's growing economy."
The Honourable Arielle Kayabaga, Member of Parliament for London West
"This is exciting news for the City of St. Thomas and another great step forward as our community continues to grow. We want people to be able to find a home here, build a life here and be part of everything that is happening in our city. Reducing development charges will help get more shovels in the ground, create more housing choices and support the people and businesses building our city. We're grateful to our provincial and federal partners for investing in St. Thomas and helping us build the homes and infrastructure our growing city needs."
Joe Preston, Mayor, City of St. Thomas
"This funding is great news for both the City of St. Thomas, 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 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 St. Thomas 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 St. Thomas to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"From big cities to rural communities, we need all levels of government to champion measures that help get more homes built across Ontario. The announcement from the federal and provincial governments to invest in the City of St. Thomas and support their efforts to reduce DCs are the types of bold actions we need to see from our leaders.
These initiatives, as OREA outlined in our A Pathway to Development Charge Reform policy report, will bring affordability closer to home."
Kim Fairley, 2026 OREA President
"Every dollar we can take out of the cost of building a new home matters. This investment is a meaningful step toward getting more homes built and keeping homeownership within reach in St. Thomas. Our Association has worked hard to advocate for solutions that address the real costs of bringing housing to market, and we're grateful to see that advocacy met with action. Mayor Joe Preston has been a strong partner to our industry in keeping housing at the forefront, and we appreciate his leadership, the work of the City of St. Thomas, and the Ontario government in moving this initiative forward. When government and industry work together with a common goal, this is the kind of progress we can achieve."
-- Angela DeVries, CEO, St. Thomas & Elgin Home Builders' Association
"Reducing development charges is an important step toward making housing projects more viable and getting more homes built. As builders and developers, we want to bring forward new housing, but the costs and fees associated with development can make it increasingly difficult to move projects ahead. Support for municipalities like St. Thomas helps remove some of those barriers, encourages investment and ultimately helps create more housing options for families, workers and communities across Ontario."
-- Russell Higgins, President, MacPherson Builders
As a local, second-generation home builder, I want to see families have the opportunity to put down roots in St. Thomas and Elgin County. Reducing development charges helps us move projects forward and deliver more homes in the communities where we live and work. This support is a meaningful step toward meeting our area's housing needs while continuing to build quality homes that serve homeowners for years to come.
-- Brandon Collier, President, Collier 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 St. Thomas 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.
Follow us on X, Facebook, Instagram and LinkedIn
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]
Share this article