City receiving up to $401.4 million for housing-enabling infrastructure in exchange for reducing and eliminating development charges over four years.
Mississauga, Ontario, September 3, 2026 - Today, the Governments of Ontario and Canada announced that the City of Mississauga is receiving up to $401.4 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 50 per cent for residential developments from January 29, 2025, to March 31, 2029.
Furthermore, Mississauga is eliminating development charges altogether on rental units with one-bedroom plus den, two or three bedrooms until March 31, 2029. The funding recognizes Mississauga's early leadership in reducing development charges. It will help build more homes and community infrastructure while advancing the province's plan to protect Ontario by investing in projects that lower costs for families, support economic growth and keep workers on the job.
The reduction in development charges over this four-year period is estimated to reduce the cost of building new homes by up to $36,140 per home. When combined with the up to $130,000 in savings enabled through the expanded HST relief on eligible new homes, these initiatives could save Mississauga families up to $166,140 off the cost of a new home.
In March 2026, the Governments 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 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.
Mississauga estimates that the construction cost savings over the development charge elimination and reduction period, along with the investment in housing-enabling infrastructure, would unlock 90,000 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.
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 Mississauga with up to $401.4 million to support housing-enabling infrastructure projects, including:
- Constructing a new zero-emission transit maintenance and storage facility in northwest Mississauga, including a bus storage area, maintenance garage and associated infrastructure;
- Delivering integrated transit infrastructure in downtown Mississauga, including the Transit Mobility Hub, transitway connections, bus platforms, pedestrian and cycling facilities, utility relocations, as well as infrastructure that supports retail, office, housing, and surrounding development.
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 per cent to 50 per cent or greater and maintain the reductions for at least three years.
