Ontario and Canada Making Homes More Affordable in Barrie

BARRIE — Today, the governments of Ontario and Canada announced that the City of Barrie is receiving up to $129 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 50 per cent for residential developments from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure in Barrie while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“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 cities like Barrie with the funding they need to ensure their community remains a desirable place to live, work and raise a family.”

The reduction in development charges over the three-year period is estimated to reduce the cost of building new homes in Barrie by up to $62,223 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Barrie up to $192,223.

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 provide relief on the full HST on eligible 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 builders through the DCRP.

“Building more homes requires strong partnerships and investments that make it easier and more affordable to build,” said Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax. “Through the Development Charge Reduction Program, we are working with Ontario and the City of Barrie to reduce the cost of new housing while supporting the infrastructure needed to build complete, thriving communities. This investment will help make homebuilding more affordable for families in Barrie and support Ontario’s growing economy.”

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 Barrie with up to $129 million to support the improvement of the City’s wastewater treatment facility infrastructure, including:

• constructing a new digester and integrating it into the existing solids treatment train
• converting the existing biological system to conventional fine-bubble diffused aeration and replacing the existing site electrical infrastructure
• constructing a new, advanced nutrient removal treatment train.

“This is a game changer for Barrie and will give more Barrie residents an opportunity to own a home,” said Alex Nuttall, Mayor of the City of Barrie. “By reducing the cost of building new homes, we are making housing more attainable while creating more opportunities for the skilled tradespeople and local businesses who build our community. I want to thank the Ontario government for their continued partnership with the City of Barrie. This is what leadership looks like: working together to build more homes, support our trades and create opportunity for Barrie residents.”

The City of Barrie estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 23,364 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

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 Barrie 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.