City receiving up to $45.3 million for infrastructure in exchange for reducing development charges for three years
Sudbury, Ontario, October 23, 2026 - Today, the Governments of Canada and Ontario 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 reduce development charges by 100 per cent for residential developments 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.
The elimination of development charges over the three-year period is estimated to reduce the cost of building new homes by up to $22,162 per home.
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. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Sudbury up to $152,162 off the cost of a new home.
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 the improvement of 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, and
- 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.
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.
