The Ontario and federal governments have opened applications for a new multi-billion-dollar program aimed at lowering the cost of building homes and accelerating housing development across municipalities.
The Development Charge Reduction Program (DCRP), announced by the Ministry of Municipal Affairs and Housing, is part of an up to $8.8 billion joint federal-provincial funding initiative designed to support housing-enabling infrastructure over a 10-year period.
Under the program, funding will be prioritized for municipalities that commit to reducing development charges by 30 to 50 per cent or more for all residential housing types, and maintain those reductions for at least three years.
“The Development Charge Reduction Program will make a life-changing difference for families in municipalities across Ontario by lowering the cost of new homes by tens of thousands of dollars,” said Ontario Municipal Affairs and Housing Minister Rob Flack.
“Along with the HST relief announced in Ontario’s 2026 budget, this program will make homes across the province more affordable. I encourage municipal leaders across Ontario to work with us to reduce development charges so we can get more shovels in the ground and keep the dream of homeownership alive in Ontario.”
The federal and provincial governments said the funding will be delivered through the Build Communities Strong Fund and is intended to help municipalities offset costs tied to housing-enabling infrastructure projects such as servicing and development-ready land.
Applications for the program opened June 1, with a submission deadline of June 19, 2026.
Projects will be evaluated based on the level of development charge reductions committed to by municipalities, projected housing units enabled by the proposed investments, and the financial contribution of the municipality itself. Local governments will be required to contribute at least 10 per cent of project costs.
Officials said municipalities that present more ambitious development charge reductions will be prioritized for funding to maximize housing supply outcomes.
“Together, we’re building Ontario and Canada strong,” said the Honourable Gregor Robertson, federal Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada.
“This joint partnership with Ontario will 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.”
Ontario Finance Minister Peter Bethlenfalvy said the program is part of broader efforts to improve affordability and support housing construction during a period of economic uncertainty.
“With global economic and trade uncertainty continuing to put pressure on hardworking Ontarians, our government is delivering real relief by reducing the cost of building homes through the Development Charge Reduction Program,” Bethlenfalvy said.
“With up to $8.8 billion in provincial and federal funding, this investment will speed up housing construction and improve affordability while also helping municipalities deliver critical housing-enabling infrastructure in our growing communities.”
The governments noted that more than 200 of Ontario’s 444 municipalities currently impose development charges. Additional details for rural, northern and small communities are expected to be released at a later date.
Officials said the program is intended to align with other housing affordability measures, including temporary expanded HST relief on new homes, which the province says could reduce costs for buyers by up to $130,000.
The federal government will deliver its portion of funding through the Build Communities Strong Fund, with a bilateral agreement between Ontario and Canada still pending finalization.
