City receiving up to $45.3 million for infrastructure in exchange for reducing development charges for three years
GREATER SUDBURY, ON, Oct. 23, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that the City of Greater Sudbury is receiving up to $45.3 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 100 per cent for residential developments from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure in Sudbury while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
The elimination of development charges over the three-year period is estimated to reduce the cost of building new homes by up to $22,162 per home.
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. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Sudbury up to $152,162 off the cost of a new home.
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 Greater Sudbury with up to $45.3 million to support the improvement of the city's water and wastewater infrastructure, including:
- Transitioning the Garson East Drinking Water System from groundwater supply to the City's surface water system, and
- Upgrading watermains and improving sanitary sewer infrastructure in the Maley Drive growth corridor.
The City of Greater Sudbury estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 3,320 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
"Building more homes means working together to remove barriers and create the conditions needed for more housing. Through the Development Charge Reduction Program, we are partnering with Ontario and the City of Greater Sudbury to lower the cost of new housing while ensuring communities have the infrastructure they need to grow. This investment will help make more homes attainable for families in Sudbury while strengthening local communities and supporting Ontario's growing economy."
Viviane Lapointe, Member of Parliament for Sudbury
"Rising housing costs have put the dream of homeownership out of reach for far too many in Ontario. Through the Development Charge Reduction Program, residents in Greater Sudbury will save thousands of dollars on the cost of a new home, making homeownership more attainable for young professionals, growing families and seniors alike"
The Honourable Rob Flack, Ontario's Minister of Municipal Affairs and Housing
"Greater Sudbury has exciting economic opportunities ahead, and Council has been focused on making it easier to build all types of new housing for people who want to live in our community. This great new partnership with the provincial and federal governments will allow us to eliminate development charges for three years while making accelerated investments in the water and wastewater infrastructure needed to support growth. Together, these efforts are expected to help unlock 3,320 new homes and enhance economic opportunities in our community."
His Worship Paul Lefebvre, Mayor of Greater Sudbury
"This partnership and commitment represents a vital step forward in ensuring the dream of home ownership for individuals and families in the community is within their grasp. It's more than just bricks and mortar--it's about creating a place to call home. I'm proud that the Province of Ontario is part of this partnership to help remove financial barriers and support the economic growth and workers of the community."
Bill Rosenberg, MPP for Algoma--Manitoulin
"Reducing barriers to development is an important part of increasing housing supply in Greater Sudbury. The elimination of development charges, combined with investments in infrastructure that support new housing, creates opportunities to move residential projects forward. These measures will help encourage new development, expand housing options and support the long-term growth of our community."
Kris Longston, General Manager of Planning and Growth, City of Greater Sudbury
"This funding is great news for both the City of Sudbury 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
"Every home we build in Sudbury starts with a dream and a price tag, and development charges are one of the biggest hurdles we see. Growth takes infrastructure, and this support helps Sudbury build what it needs without pricing families out of the market. We appreciate the province's investment in Greater Sudbury, and we'll keep working to make sure all Northern Ontario communities can access similar support."
Morgan Rouleau, CEO, Northern Ontario 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 Greater Sudbury 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 Sudbury to reduce barriers, support growth and help increase housing supply across Ontario."
Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario
"We are thrilled to see Sudbury working to reform DCs and being rewarded for their efforts. We commend City Council for taking bold action to build more homes and create the infrastructure necessary to support growth. Through the Development Charge Reduction Program, all levels of governments are heeding our calls to bring housing affordability back. As we noted in our A Pathway to Development Charge Reform policy report, these initiatives are key to building more homes without increasing other costs."
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 Greater Sudbury 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: Jenna Ghassabeh, Director of Communications, 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]; Communications Branch, Ministry of Municipal Affairs & Housing, [email protected]
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