MPP Oosterhoff Welcomes Opening of Applications for New Development Charge Reduction Program

June 1, 2026

Beamsville – The Ontario government is opening applications for a new program that is intended to reduce building costs and speed up the construction of new homes. As part of the up to $8.8 billion partnership announced in March, the Development Charge Reduction Program will deliver federal and provincial funding over ten years for housing-enabling infrastructure projects, with funding prioritized for municipalities that reduce development charges for all residential types by thirty percent to fifty percent or greater and maintain the reductions for at least three years.

In March 2026, Ontario and Canada agreed to a cost-matched structure to provide a combined $8.8 billion over ten years for infrastructure investments in Ontario, with Canada’s share of the funding flowing through the Build Communities Strong Fund’s Provincial and Territorial Stream, pending an agreement under this fund. The Build Communities Strong Fund was launched by the federal government earlier this year to accelerate infrastructure projects across the country to reduce costs.

“This is great news for local municipalities in Niagara,” said Sam Oosterhoff, MPP for Niagara West.

“By reducing development charges while keeping municipalities whole, we are enabling new homes and infrastructure across the region, while lowering costs and helping families realize the dream of homeownership. This program is an additional support to the province removing the full thirteen percent of the Harmonized Sales Tax for eligible buyers of new homes valued up to $1 million.”

“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 Hon. Rob Flack, Minister of Municipal Affairs and Housing.

“Along with the Harmonized Sales Tax 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 Development Charge Reduction Program is made possible by the Canada-Ontario Partnership to Build, which was announced in March 2026. This partnership also supports Ontario’s temporary expanded Harmonized Sales Tax relief on new homes, which will save homebuyers up to $130,000 off the cost of a new home.

As of June 1, 2026, eligible municipalities can apply for funding through the Development Charge Reduction Program. The deadline to apply is June 19, 2026. Timelines for the Development Charge Reduction Program are intended to coincide with the enhanced Harmonized Sales Tax rebate in order to maximize relief for home builders and home buyers.

“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,” said Hon. Peter Bethlenfalvy, Minister of Finance.

“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.”

Funding through the Canada-Ontario Partnership to Build will also be made available for rural, small and Northern municipalities, with more details to be announced at a later date.