Ontario and Canada Making Homes More Affordable in St. Thomas

ST. THOMAS — Today, the governments of Ontario and Canada announced that the City of St. Thomas is receiving up to $19.6 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 30 per cent for single-detached homes and multi-unit housing, and 50 per cent for remaining unit types from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure in St. Thomas while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“Alongside our federal and municipal partners, our government is creating the conditions to ensure communities like St. Thomas can continue to grow and thrive,” said Rob Flack, Minister of Municipal Affairs and Housing. “As MPP for Elgin-Middlesex-London, I am proud of the tremendous quality of life this area has to offer. Investments like this will help St. Thomas continue to grow as a strong, vibrant community where more people can put down roots, build a future and raise a family for generations to come.”

The reduction in development charges over the three-year period is estimated to reduce the cost of building new homes in St. Thomas by up to $5,961 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in St. Thomas up to $135,961.

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 Arielle Kayabaga, Member of Parliament for London West. “Through the Development Charge Reduction Program, we are working with Ontario and the City of St. Thomas 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 St. Thomas 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 St. Thomas with up to $19.6 million to support the design and construction of a new wastewater treatment facility.

“This is exciting news for the City of St. Thomas and another great step forward as our community continues to grow,” said Joe Preston, Mayor, City of St. Thomas. “We want people to be able to find a home here, build a life here and be part of everything that is happening in our city. Reducing development charges will help get more shovels in the ground, create more housing choices and support the people and businesses building our city. We’re grateful to our provincial and federal partners for investing in St. Thomas and helping us build the homes and infrastructure our growing city needs.”

The City of St. Thomas estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 6,196 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, as well as important community features such as libraries and 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 St. Thomas 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.