Ontario and Canada Making Homes More Affordable in Essex County

LASALLE — Today, the governments of Ontario and Canada announced that regional and local municipalities in the County of Essex will receive up to $105.8 million through the Development Charge Reduction Program (DCRP) in recognition of their commitment to reduce or eliminate development charges for all housing types from March 30, 2026, to December 31, 2030, depending on the municipality. The funding will help build more homes and community infrastructure 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 is delivering the Development Charge Reduction Program alongside our federal partners. Together, we’re providing growing municipalities with the funding they need to ensure their communities remain a desirable place to live, work and raise a family.”

In Essex County, the reduction in development charges over the relief period is estimated to reduce the cost of building new homes by up to $40,862 per home, depending on the municipality, which includes reductions at both the upper and lower tiers.

In March 2026, Ontario and the federal governments 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. When combined with savings through the DCRP, these initiatives could save families across the region up to $170,862 on the cost of a new home.

“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 Essex County 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 Essex County and support Ontario’s growing economy.”

Construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 36,372 new homes in Essex County, supporting a housing market with more choice and greater affordability for homebuyers and renters.

Support for reducing development charges

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 following funding to support housing-enabling infrastructure projects:

• Up to $51.2 million for Essex County for eliminating development charges for all housing types in 2026 and 2027 and reducing development charges by 75 per cent in 2028, 50 per cent in 2029 and 25 per cent in 2030.
• Up to $25.4 million for the Town of LaSalle for eliminating development charges for all housing types from March 30, 2026, to March 31, 2029, including in the Reaume Sanitary Service Area.
• Up to $8.8 million for the Town of Essex, up to $11.8 million for the Municipality of Lakeshore and up to $8.4 million for the Town of Kingsville for reducing development charges by 50 per cent for all housing types from March 30, 2026, to March 31, 2029.

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.

• The Town of Tecumseh will receive up to $6.8 million for reducing development charges by 50 per cent for all housing types from March 30, 2026, to March 31, 2029.
• Windsor will receive up to $77.6 million for reducing development charges by 70 per cent for all housing types from March 30, 2026, to March 31, 2029.
• 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 each municipality 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.