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Development Charges Reduction Program - Canada
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Development Charges Reduction Program

Supports housing growth through municipal infrastructure
Last Update: June 18, 2026
Funding available
Varies by project
Timeline
  • Open continuously
Location
Canada

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.
/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • No objectives are currently available
Eligible Funding
  • Varies by project
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • All industries
Location
  • Canada
Legal structures
  • All legal structures
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • All groups

Next Steps

1
Determine your project
2
Validate your eligibility

Activities funded

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

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

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

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

  • Only one intake is planned for this program.
  • Applications must be submitted through TPON.
  • Approved projects are subject to a funding agreement.
  • Public disclosure applies to approved projects and funding awards.

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.

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?

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

Where is the Development Charges Reduction Program available?

The Development Charges Reduction Program program is available across Canada.

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

Development Charges Reduction Program is a undefined

Who are the financial supporters of the Development Charges Reduction Program?

Development Charges Reduction Program is funded by Government of Ontario, Government of Canada