Development Charge Reduction Program will support housing-enabling infrastructure projects while reducing the cost Buildings homes by approximately $83,000
TORONTO, June 23, 2026 /CNW/ - Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure, the Honourable Doug Ford, Premier of Ontario, along with Her Worship Olivia Chow, Mayor of Toronto, announced that Toronto is receiving $1.5 billion through the Development Charge Reduction Program (DCRP) in recognition of their commitment to reducing residential development charges by 40 to 60 percent. The funding will help build more homes and community infrastructure in the city of Toronto while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
Toronto estimates that reducing the city's development charges, while investing in housing-enabling infrastructure, will support the construction of approximately 44,000 new homes and provide an estimated $1.95 billion in relief to homebuilders. For example, this could reduce development charges by approximately $83,000 for a new single/semi-detached home in Toronto.
Subject to the signing of a Canada-Ontario BCSF agreement and further due diligence, the DCRP funding will support infrastructure projects in communities across Toronto that will unlock housing in Ontario's largest city, including by:
- Purchasing new buses to meet current and future ridership demand;
- Modernizing Line 2 signalling to enable more frequent service;
- Expanding watermains that would benefit residents while enabling more community growth;
- Implementing area-wide infrastructure improvements that address traffic congestion on St. Clair Avenue West between Keele Street and Old Weston Road;
- Supporting the Liberty Village New Street project;
- Reconstructing the Scarlet Road railway bridge overpass to improve safety and increase capacity;
- Widening Steeles Avenue East from Tapscott Road to Ninth Line, revitalizing John Street to create a pedestrian-oriented corridor between Front Street and Stephanie Street and extending Broadview Avenue south at Eastern Avenue; and
- Delivering a new road connection that will extend Tradewind Avenue north to Sheppard Avenue East via Bonnington Place, supporting planned growth and improving local connectivity.
In March 2026, Ontario and Canada 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.
As part of the Canada-Ontario Partnership to Build, the Development Charge Reduction Program (DCRP) is delivering funding over 10 years for essential 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
"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 Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
"The Ontario government is doing everything we can to lower costs for families, keep workers on the job and get shovels in the ground faster on new homes. That's why we are pleased to see the city of Toronto commit to significantly reduce development charges, bringing down the cost to build, increasing the supply of homes and keeping the dream of home ownership alive for Ontario families."
Doug Ford, Premier of Ontario
"We know that it costs too much and takes too long to build new homes in Ontario. Our government will continue to work with our municipal and federal partners to break down these barriers and get more homes built."
The Honourable Rob Flack, Minister of Municipal Affairs and Housing
"Our government is investing in the infrastructure Ontario needs to support unprecedented growth and get people where they need to go faster. Through the Development Charge Reduction Program, we are working with Toronto to deliver critical transit, road and water infrastructure that will unlock new housing, reduce congestion and help build stronger, more connected communities for generations to come."
The Honourable Prabmeet Sarkaria, Minister of Transportation
People should be able to afford a home in our city. Today's announcement will make that easier while creating tens of thousands of good jobs in Toronto.Through our strong partnership with the Provincial and Federal government, we're reducing the cost of building new homes and ensuring the City can keep investing in the infrastructure we need to support communities."
Olivia Chow, Mayor of Toronto
Quick Facts
- Funding through the DCRP will support vital housing-enabling infrastructure projects, such as water/wastewater systems, roads, bridges, transit vehicles, along with community features to establish and enrich neighbourhoods like libraries or recreation centres.
- Federal funding for this project is subject to the conclusion of a Canada–Ontario BCSF bilateral agreement, as well as federal review and approval of project funding.
- Receipt of the funding will be subject to the city of Toronto 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 the 444 municipalities in Ontario, more than 200 currently levy development charges.
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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 and Minister responsible for Pacific Economic Development Canada, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]; Michael Minzak, Office of the Minister of Municipal Affairs and Housing, [email protected]; Communications Branch, [email protected]
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