Ontario and Canada Making Homes More Affordable in Hamilton

HAMILTON — Today, the governments of Ontario and Canada announced that the City of Hamilton is receiving $572 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to eliminate development charges on all residential developments from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure in the City of Hamilton while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“We’re making historic investments in Hamilton to lower costs for families, keep workers on the job and get more homes built faster,” said Premier Doug Ford. “Today’s investment will support new transportation and housing infrastructure across the city, enabling the construction of tens of thousands of new homes. Congratulations to Mayor Horwath and Hamilton City Council for demonstrating incredible leadership and working with us to bring the dream of home ownership within reach for Hamilton families.”

The complete removal of development charges over the three-year period is estimated to reduce the cost of building new homes by up to $100,442 per home. When combined with the up to $130,000 in savings enabled through the expanded HST relief on eligible new homes, these initiatives could save Hamilton families over $230,000 off the cost of a new home.

“Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is why our government continues to deliver programs like the Development Charge Reduction Program alongside our federal partners, which helps provide municipalities like Hamilton with the funding they need to ensure their city remains a desirable place to live, work and raise a family.”

In March 2026, Ontario and the federal government 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 remove the full HST on new homes from April 1, 2026 to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. This is in addition to cost reductions for new homes through the DCRP.

“Together, we’re building Ontario and Canada strong,” said the Honourable Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions). “By partnering with Ontario, the federal government is helping speed up housing construction by lowering upfront costs and investing in housing-enabling infrastructure projects — building strong, resilient communities that boost housing supply and drive economic opportunities.”

The City of Hamilton estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock over 31,000 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

“This is a historic investment in Hamilton’s future and one I have worked hard as Mayor to make happen. It represents the single largest investment in roads, water and wastewater infrastructure in our city’s history, and I welcome the support of our provincial and federal partners,” said Mayor Andrea Horwath. “We know Hamilton needs more housing. That means creating the conditions to get more homes built, support local construction and get people back to work, while making housing more affordable for Hamiltonians. By eliminating residential development charges for three years and investing in the infrastructure our growing communities need, we can get shovels in the ground, increase housing supply and reduce costs for people looking to call Hamilton home.”

The elimination of development charges will take effect following approval by Hamilton City Council and must remain in effect for three years. 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 Hamilton with up to $572 million to support infrastructure projects in communities across Hamilton that will unlock housing, including:

• Widening and reconstructing Barton Street (Fruitland Road to Fifty Road) to a five-lane multi-modal arterial road
• Reconstructing Lewis Road (Highway 8 to Barton Street) to an urban standard multi-modal collector road
• Widening Rymal Road (Glancaster Road to Upper Paradise Road and from Upper James Street to Dartnall Road, south of Hamilton Mountain) to a five-lane urban arterial corridor
• Widening and reconstructing Garner Road (Wilson Street to Glancaster Road in Ancaster) into a five-lane urban arterial corridor
• Expanding the Woodward water/wastewater treatment plant
• Upgrading the capacity of the Greenhill Water Pumping Station.

As part of the Canada—Ontario Partnership to Build, the DCRP is delivering 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.

• Funding through 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 Hamilton 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.