Ontario and Canada Making Homes More Affordable in Sudbury

SUDBURY — Today, the governments of Ontario and Canada announced that the City of Greater Sudbury is receiving up to $45.3 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to eliminate development charges for all housing types from March 30, 2026, to March 31, 2029. The funding will help build more homes and community infrastructure in Sudbury while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“Rising housing costs have put the dream of homeownership out of reach for far too many people in Ontario,” said Rob Flack, Minister of Municipal Affairs and Housing. “Through the Development Charge Reduction Program, residents in Greater Sudbury will save thousands of dollars on the cost of a new home, making homeownership more attainable for young professionals, growing families and seniors alike.”

The elimination of development charges over the three-year period is estimated to reduce the cost of building new homes in Sudbury by up to $22,162 per home.

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. When combined, the elimination of development charges and HST relief could save families in Sudbury up to $152,162 on the cost of a new home.

“Building more homes means working together to remove barriers and create the conditions needed for more housing,” said Viviane Lapointe, Member of Parliament for Sudbury. “Through the Development Charge Reduction Program, we are partnering with Ontario and the City of Greater Sudbury to lower the cost of new housing while ensuring communities have the infrastructure they need to grow. This investment will help make more homes attainable for families in Sudbury while strengthening local communities and supporting 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 Greater Sudbury with up to $45.3 million to support improvements to the city’s water and wastewater infrastructure, including:

• Transitioning the Garson East Drinking Water System from groundwater supply to the City’s surface water system
• Upgrading watermains and improving sanitary sewer infrastructure in the Maley Drive growth corridor.

The City of Greater Sudbury estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 3,320 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

“Greater Sudbury has exciting economic opportunities ahead, and Council has been focused on making it easier to build all types of new housing for people who want to live in our community,” said Paul Lefebvre, Mayor of Greater Sudbury. “This great new partnership with the provincial and federal governments will allow us to eliminate development charges for three years while making accelerated investments in the water and wastewater infrastructure needed to support growth. Together, these efforts are expected to help unlock 3,320 new homes and enhance economic opportunities in our community.”

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 Greater Sudbury 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.