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Development Charges Reduction Program

Supports housing growth through municipal infrastructure

Offered by
Government of Ontario
Official source: ontario.ca

Source change captured

Funding available
Up to 90% of project cost
Deadline
Unspecified
Location
Ontario, Canada
Who can apply
Ontario single-tier municipalities
See full eligibility

Overview

The Development Charge Reduction Program supports Ontario municipalities that lower residential development charges to unlock more housing. It also helps finance housing-enabling infrastructure such as roads, water, wastewater and transit.

At a glance

Funding available

Maximum share of project costs
90%
Financing goals
No objectives are currently available

Eligible candidates

Location
  • Ontario
Eligible Industries
All industries
Annual revenue
All revenue ranges
Organisation size
All organization sizes
Audience
All groups
Legal structures
Public or Parapublic institution

Receipt of requests is now closed

Get notified about updates to this grant.

Availability timeline

2026
Periods: 1

Latest changes

Application process closed; FAQ updated

The program page now says the application process is finished, and the June 1, 2026 guidelines/FAQ PDF adds new financial clarifications on eligible and ineligible costs.

See more

The program page now states that the funding application process is finished, and the application instructions that previously listed the PTO steps, the form, and the June 19, 2026 deadline have been removed from the visible process section. The page update is marked June 19, 2026. The June 1, 2026 guidelines and FAQ PDF also adds a new FAQ section with clarifications on eligible and ineligible costs that can count toward the municipality’s 10% contribution, plus guidance on how the maximum funding is calculated based on the development charge relief awarded. It also clarifies how upper-tier municipalities and area-specific development charges are treated in the reduction calculation.

Official source: ontario.ca
July 11, 2026

Eligibility

Who is eligible?

  • Ontario single-tier municipalities
  • Ontario upper-tier municipalities
  • Ontario lower-tier municipalities

Who is not eligible

  • Non-municipal organizations
  • Municipalities without an active residential development charge by-law

Eligible expenses

  • Construction costs, labour, materials and equipment
  • Land acquisition costs for the provincial share only
  • Environmental assessment and duty to consult costs incurred after February 26, 2026

Ineligible Costs and Activities

  • Soft costs such as design, engineering, legal fees, permitting and insurance
  • Overhead, administrative and staffing costs
  • Operating and maintenance costs
  • Costs incurred after October 31, 2035 or for cancelled projects

Eligible geographic areas

  • Ontario

Activities funded

  • Housing-enabling infrastructure projects
  • Expansion or new construction of municipal infrastructure systems
  • Projects supporting new housing delivery over the long term

How to apply

  • Step 1: Register or log in to TPON
    • Create or access your Transfer Payment Ontario account.
    • Confirm organization contact information.
  • Step 2: Complete the application form
    • Fill in the required project and municipal information.
    • Complete the duty to consult questionnaire.
  • Step 3: Upload supporting documents
    • Attach the required forms and project evidence in TPON.
    • Include the KML project map and other requested attachments.
  • Step 4: Submit by the deadline
    • Send the full application through TPON.
    • Wait for the automated acknowledgement of receipt and file number.

Documents Needed

  • Development charge by-law showing rates effective March 30, 2026
  • Latest development charge background study
  • Capital budget or plan
  • KML project map
  • Supporting evidence of shovel-readiness, if applicable

Selection criteria

  • Depth of committed development charge reduction
  • Number of housing units enabled by the DC relief
  • Municipal contribution to the project
  • Shovel-readiness of the project
  • Priority is given to housing-enabling infrastructure

Processing and Agreement

  • Applications are reviewed for completeness, eligibility and program outcomes
  • Projects are assessed on DC reduction depth, housing impact and municipal contribution
  • Approved applicants receive a funding agreement to sign before funding is released
  • Funding is paid after required milestones are confirmed through reporting
  • Annual reports are required during the funding period

Additional information

  • The application process was administered through Transfer Payment Ontario (TPON) and is now closed.
  • Only a single intake was planned for this program.

Contacts

DCRP@ontario.ca
416-325-6691

Official sources

Development Charge Reduction Program

Program guide

Development Charge Reduction Program (2026)

Application form

Development Charges Reduction Program Application
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Frequently Asked Questions about the Development Charges Reduction Program Program

What is the Development Charges Reduction Program?

The Development Charge Reduction Program supports Ontario municipalities that lower residential development charges to unlock more housing. It also helps finance housing-enabling infrastructure such as roads, water, wastewater and transit.

How much funding can be received?

Development Charges Reduction Program Funds up to 90% of admissible expenses.

Who is eligible for the Development Charges Reduction Program program?

To be eligible for the Development Charges Reduction Program program, you must: Ontario municipality with active DC by-law DC reduction commitment of 30% to 50%+ Housing-enabling project in DC study and capital plan

What expenses are eligible under Development Charges Reduction Program?

Construction costs, labour, materials and equipment Land acquisition costs for the provincial share only Environmental assessment and duty to consult costs incurred after February 26, 2026

Who can I contact for more information about the Development Charges Reduction Program?

You can contact Government of Ontario by email at DCRP@ontario.ca or by phone at 416-325-6691.

Where is the Development Charges Reduction Program available?

The Development Charges Reduction Program program is available the province of Ontario.

Is the Development Charges Reduction Program a grant, loan, or tax credit?

Development Charges Reduction Program is a Grant and Funding