Ontario and Canada Making Homes More Affordable in Orillia

ORILLIA — Today, the governments of Ontario and Canada announced that the City of Orillia is receiving up to $11.3 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 50 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 Orillia while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“As communities across Ontario continue to grow, they need the right infrastructure in place to support new homes and the families who will call them home,” said Graydon Smith, Associate Minister of Municipal Affairs and Housing. “Through the Development Charge Reduction Program, we're working with our federal and municipal partners to lower the cost of building new homes while investing in the infrastructure communities like Orillia need to remain great places to live, work and raise a family.”

The reduction in development charges over this three-year period is estimated to reduce the cost of building new homes by up to $15,791 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Orillia up to $145,791.

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).

“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. “Through the Development Charge Reduction Program, we are working with Ontario and the City of Orillia 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 Orillia and support Ontario’s growing economy.”

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.

The City of Orillia estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 2,025 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

“This $11.3 million investment through the DCRP is welcome news for our city,” said Don McIsaac, Mayor of Orillia. “As the community continues to grow, this funding will help support the infrastructure needed to meet current and future housing demands. We thank the province for its ongoing commitment to strengthening municipalities across Ontario.”

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 Orillia with up to $11.3 million to support the expansion and modernization of the City’s existing Wastewater Treatment Centre.

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 Orillia 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.