The Government of Canada and the Government of Ontario have opened applications for a new Development Charge Reduction Program (DCRP), a major initiative aimed at lowering housing costs and accelerating new home construction across municipalities in Ontario.
The program is part of a broader $8.8 billion federal-provincial partnership designed to support housing-enabling infrastructure over the next decade. Funding will be prioritized for municipalities that reduce development charges by 30 to 50 percent or more and maintain those reductions for at least three years.
Officials say the initiative is intended to make housing more affordable by reducing upfront construction costs and encouraging the development of new residential units. By lowering development charges, municipalities are expected to support increased housing supply and faster project approvals.
Applications for the program opened on June 1, 2026, with a deadline of June 19, 2026. Funding decisions will be based on factors such as the level of development charge reduction, projected housing growth enabled by the program, and municipal financial contributions.
The Development Charge Reduction Program is part of the Canada-Ontario Partnership to Build, which also includes additional housing affordability measures such as expanded HST relief on new homes. Together, these initiatives aim to reduce the cost of homeownership while increasing housing availability across the province.
Federal and provincial officials emphasized that municipalities adopting more ambitious cost reductions will be more competitive for funding, ensuring that resources are directed toward projects that deliver the greatest impact on housing supply.
The program is also expected to complement broader federal efforts under the Build Communities Strong Fund, which supports infrastructure investments to help reduce construction costs and speed up development timelines.
Additional funding details for rural, northern, and small municipalities are expected to be announced in the coming months.
