City receiving up to $48.3 million for infrastructure in exchange for reducing development charges for three years
Guelph, Ontario, October 16, 2026 - Today, the Governments of Canada and Ontario 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. This 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.
The reduction in development charges over this three-year period is estimated to reduce the cost of building new homes 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, Canada and Ontario 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.
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, Canada and Ontario will provide the City of Guelph with up to $48.3 million to support improving the City's water and wastewater infrastructure, including by:
- 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; and
- Constructing a new Clythe Water Treatment Plant, Booster Pumping Station, and Storage Facility, including linear water and wastewater servicing infrastructure to support regional growth.
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.
Delivering on the Canada-Ontario Partnership to Build, the BCSF and the DCRP are providing 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.
