Development Charge Reduction Program will support housing-enabling infrastructure projects while reducing the cost Buildings homes by approximately $83,000
Toronto, Ontario, June 23, 2026 - Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure, the Honourable Doug Ford, Premier of Ontario, along with Her Worship Olivia Chow, Mayor of Toronto, announced that Toronto is receiving $1.5 billion through the Development Charge Reduction Program (DCRP) in recognition of their commitment to reducing residential development charges by 40 to 60 percent. The funding will help build more homes and community infrastructure in the city of Toronto while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
Toronto estimates that reducing the city's development charges, while investing in housing-enabling infrastructure, will support the construction of approximately 44,000 new homes and provide an estimated $1.95 billion in relief to homebuilders. For example, this could reduce development charges by approximately $83,000 for a new single/semi-detached home in Toronto.
Subject to the signing of a Canada-Ontario BCSF agreement and further due diligence, the DCRP funding will support infrastructure projects in communities across Toronto that will unlock housing in Ontario's largest city, including by:
- Purchasing new buses to meet current and future ridership demand;
- Modernizing Line 2 signalling to enable more frequent service;
- Expanding watermains that would benefit residents while enabling more community growth;
- Implementing area-wide infrastructure improvements that address traffic congestion on St. Clair Avenue West between Keele Street and Old Weston Road;
- Supporting the Liberty Village New Street project;
- Reconstructing the Scarlet Road railway bridge overpass to improve safety and increase capacity;
- Widening Steeles Avenue East from Tapscott Road to Ninth Line, revitalizing John Street to create a pedestrian-oriented corridor between Front Street and Stephanie Street and extending Broadview Avenue south at Eastern Avenue; and
- Delivering a new road connection that will extend Tradewind Avenue north to Sheppard Avenue East via Bonnington Place, supporting planned growth and improving local connectivity.
In March 2026, Ontario and Canada 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.
As part of the Canada-Ontario Partnership to Build, the Development Charge Reduction Program (DCRP) is delivering funding over 10 years for essential 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.
