Development Charges Reduction Program

The Development Charges Reduction Program (DCRP) helps Ontario municipalities reduce development charges and advance shovel-ready infrastructure projects that support new housing development.

Delivered through the $8.8 billion Canada-Ontario Partnership to Build, the program supports housing-enabling infrastructure projects that allow municipalities to reduce development charges for builders while investing in the roads, water, wastewater, transit, and community infrastructure needed to unlock new housing supply.

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Program Information

Eligible Applicants

Eligible applicants include Ontario municipalities, including:

• Single-tier municipalities
• Upper-tier municipalities
• Lower-tier municipalities

Applicants must have an active development charges by-law in place as of March 30, 2026.

Municipalities may submit more than one application, up to a maximum of fewer than five applications, either individually or jointly with other municipalities.

Eligible Projects

Eligible projects must primarily enable the construction of new housing units and be considered shovel-ready infrastructure projects.

Potential eligible infrastructure projects include:

• Roads
• Water systems
• Wastewater systems
• Transit infrastructure
• Community infrastructure projects that support the development of complete communities

Projects must also:

• Support a development charge reduction of at least 30% to 50% for 3 years
• Be included in the municipality’s most recent development charges background study supporting the DC by-law
• Be informed by a capital plan
• Start no later than July 31, 2030
• Be completed by October 31, 2035

Projects that have already started construction, or projects focused on rehabilitating or repairing existing assets, are not eligible.

Funding Information

Eligible project costs are shared across all levels of government:

• Up to 90% funded by the federal and provincial governments
• At least 10% funded by the municipality

Funding is expected to be provided on a milestone basis, with Transfer Payment Agreements expected to be executed prior to August 15, 2026.

Municipalities may stack funding from other provincial and federal programs, provided the other funding is not from housing-enabling infrastructure programs. Stacked funding does not count toward the required municipal contribution.

Ineligible Costs

The following costs are not eligible for program funding:

• Design
• Engineering
• Legal fees
• Permitting
• Insurance

These costs may still be relevant when preparing the application and assessing the overall municipal contribution.

High-Priority Projects

Priority will be given to projects that demonstrate:

• Strong alignment with housing-enabling infrastructure
• A high number of housing units enabled
• A development charge reduction greater than the required 30% to 50%
• A municipal financial contribution greater than the minimum 10%
• Clear shovel-readiness and project advancement

Key Application Considerations

Municipalities should be prepared to provide:

• A reasonable estimate of the number of housing units enabled
• An estimate of the number of units benefiting from development charge relief
• Confirmation of applicant ownership of the infrastructure asset
• A financing strategy to cover upfront project costs and potential cost changes
• Evidence of shovel-readiness, such as environmental assessment, land acquisition, conceptual engineering, detailed engineering, planning and design, or tender/contract award status
• A project map in KML format identifying all project components
• Land use planning information related to proposed housing development
• Confirmation of compliance with applicable Buy Canadian or Buy Ontario procurement requirements

How GrantMatch Can Help

GrantMatch helps municipalities identify, assess, and pursue government funding opportunities that support infrastructure, housing, and community development priorities.

Our team can support your municipality by:

• Reviewing project and applicant eligibility
• Assessing program fit and funding potential
• Supporting application strategy
• Preparing and writing the funding application
• Helping position shovel-ready infrastructure projects for competitive evaluation

With the application deadline approaching on June 19, 2026 at 10:00 a.m. ET, municipalities should begin reviewing eligible infrastructure projects, development charge reduction commitments, and application requirements as soon as possible.