City receiving $572 million for infrastructure in exchange for eliminating development charges for three years
Hamilton, Ontario, August 26, 2026 - Today, the governments of Ontario and Canada announced that the City of Hamilton is receiving $572 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to eliminate development charges on all residential developments from March 30, 2026, to March 31, 2029. The funding will help build more homes and community infrastructure in the City of Hamilton while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
The complete removal of development charges over the three-year period is estimated to reduce the cost of building new homes by up to $100,442 per home. When combined with the up to $130,000 in savings enabled through the removal of the HST on new homes, these initiatives could save Hamilton families up to $230,000 off the cost of a new home.
In March 2026, the Government of 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 remove the full HST on 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 Hamilton estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock over 31,000 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.
The elimination of development charges will take effect following approval by Hamilton City Council and must remain in effect for three years. 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 Hamilton with up to $572 million to support infrastructure projects in communities across Hamilton that will unlock housing, including:
- Widening and reconstructing Barton Street (Fruitland Road to Fifty Road) to a five-lane multi-modal arterial road
- Reconstructing Lewis Road (Highway 8 to Barton Street) to an urban standard multi-modal collector road
- Widening Rymal Road (Glancaster Road to Upper Paradise Road and from Upper James Street to Dartnall Road, south of Hamilton Mountain) to a five-lane urban arterial corridor
- Widening and reconstructing Garner Road (Wilson Street to Glancaster Road in Ancaster) to a five-lane urban arterial corridor
- Expanding the Woodward water/wastewater treatment plant
- Upgrading the capacity of the Greenhill Water Pumping Station.
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.
