Feds & Ontario to Cut Municipal Development Charges by Up to 50% for 3 Years

Prime Minister Mark Carney and Ontario Premier Doug Ford unveiled a major housing pact in Toronto on March 30 that aims to slash the upfront cost of building by cutting municipal development charges (DCs) by up to 50% for three years. The reductions will apply in municipalities covering roughly 80% of Ontario’s population, and are backed by a $8.8-billion, 10-year cost-matched infrastructure fund—Ottawa’s new Build Communities Strong Fund paired with provincial dollars. The idea is simple: the two senior governments backfill infrastructure costs so cities can lower the fees that developers pay for roads, water, sewers, transit and community facilities, which are routinely passed on to buyers and renters. “Development charges are a major upfront cost that can delay or prevent new housing projects,” Carney said. “Lowering these upfront costs will help accelerate construction and build more homes.” Ford added that the money will be prioritized for municipalities that agree to the cuts—“If you don’t cut DCs, you aren’t getting any money,” he said—while noting cities will still share part of the cost, making it a three-level partnership. The governments estimate the combined measures could cut up to $200,000 in taxes and fees from the price of a new home in Ontario. That figure includes the DC reductions plus the parallel expansion of the HST rebate: the full 13% HST will be removed on new homes priced up to $1 million (saving up to $130,000), with the rebate phasing down to about $24,000 for homes at $1.85 million and above. Ontario says the tax relief alone could spur 8,000 additional housing starts, support 21,000 construction jobs, and generate $2.7 billion in economic activity. Industry groups welcomed the move. The Canadian Home Builders’ Association called it a “positive step” after years of advocacy against skyrocketing development taxes, which it says have undermined affordability and supply. The City of Toronto joined the announcement, tying the DC relief to the Waterfront East LRT and noting the line will enable more than 75,000 new homes. Toronto also highlighted its own $760 million in recent fee reductions, including eliminating DCs for 6,128 purpose-built rentals and freezing 2024 rates. Tip the host https://link.space/@RoamingRamble buy me a coffee coff.ee/jadirigameb Amazon wishlist https://www.amazon.ca/hz/wishlist/ls/ref=cm_wl_your_lists