Ontario and Canada Making Homes More Affordable in Guelph

GUELPH — Today, the governments of Ontario and Canada announced that the City of Guelph is receiving up to $48.3 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 30 per cent for all housing types from March 30, 2026, to March 31, 2029. The funding will help build more homes and community infrastructure in Guelph while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“For far too long, we’ve seen the cost of housing go up,” said Rob Flack, Minister of Municipal Affairs and Housing. “We’re addressing this head-on through our Partnership to Build with the federal government, an agreement that delivers both the Development Charge Reduction Program and HST rebate. These two measures alone could save families in Guelph well over six figures, bringing the dream of homeownership further within reach for young professionals, growing families and seniors alike.”

The reduction in development charges over the three-year period is estimated to reduce the cost of building new homes in Guelph by up to $21,623 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Guelph up to $151,623.

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, more easily and affordably needs strong partnerships and investments,” said Dominique O’Rourke, Member of Parliament for Guelph. “Through the Development Charge Reduction Program, we are working with the City of Guelph and Ontario to lower the cost of new housing and supporting the infrastructure needed to build complete, thriving communities. This investment will make housing more affordable for families in Guelph to support our 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 Guelph with up to $48.3 million to support improvements to the City’s water and wastewater infrastructure, including:

• Upgrading the Biosolids Facility in Guelph’s Water Resource Recovery Centre
• Upgrading Verney Booster Pumping Station with a new treated-water booster pumping station and supporting linear watermain infrastructure
• Constructing a new Clythe Water Treatment Plant, Booster Pumping Station, and Storage Facility, including linear water and wastewater servicing infrastructure to support regional growth.

“We’ve been actively working on solutions to support new housing in Guelph, and this announcement is an important part of that work,” said Cam Guthrie, Mayor of the City of Guelph. “Guelph is committing to reduce development charges by 30 per cent to help encourage housing development, and this federal and provincial investment helps fund the vital water and wastewater infrastructure needed to support those new homes. It’s a great example of how different levels of government can work together to support housing while continuing to invest in the services residents rely on every day. Thank you to the federal and provincial governments for making this possible.”

The City of Guelph estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 27,675 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 Guelph 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.