Ottawa Construction News staff writer
Applications are now open for the Development Charge Reduction Program (DCRP), an $8.8-billion federal-provincial initiative that provides infrastructure funding to municipalities that slash development charges.
The Greater Ottawa Home Builders’ Association (GOHBA) is strongly urging the City of Ottawa to apply before the June 19 deadline, noting that development charges (DCs) in the city have increased by more than 30 per cent inside the greenbelt and more than 25 per cent outside the greenbelt over the past two and a half years.
“This is exactly the kind of leadership and partnership needed to address Ontario’s housing supply crisis,” GOHBA executive director Jason Burggraaf said in a June 2 statement. “For years, GOHBA has advocated that the government at all levels needs to tackle rising infrastructure costs. This announcement recognizes that reality and provides municipalities with a practical path to reduce those costs while continuing to invest in critical infrastructure.”
Under the DCRP, the federal and provincial governments will cost-match funding for housing-enabling infrastructure projects over 10 years. To qualify, municipalities must reduce DCs for all residential types by 30 to 50 per cent or greater and maintain those reductions for at least three years. The combined federal-provincial contribution funds 90 per cent of the reduction, with the municipality funding the remaining 10 per cent.
Cutting DCs in half in Ottawa would return them to 2016 rates, immediately improving project viability, making housing more affordable and helping to deliver more homes faster, according to GOHBA.
“We strongly urge the City of Ottawa to move immediately to get funding from the new agreement, cut its DCs, and build the infrastructure that will support new housing supply,” Burggraaf said. “We look forward to working with the City of Ottawa to ensure this opportunity translates into more homes, more housing choice and improved affordability for Ottawa residents.”
The funding stems from the Canada-Ontario Partnership to Build, announced in March 2026. The program aims to accelerate infrastructure projects to lower the cost of new homes. Of Ontario’s 444 municipalities, more than 200 currently levy development charges.
“The Development Charge Reduction Program will make a life-changing difference for families in municipalities across Ontario by lowering the cost of new homes by tens of thousands of dollars,” said Rob Flack, Ontario’s minister of municipal affairs and housing. “Along with the HST relief announced in Ontario’s 2026 budget, this program will make homes across the province more affordable.”
Flack encouraged municipal leaders to work with the province to reduce DCs to “get more shovels in the ground and keep the dream of homeownership alive in Ontario.”
Applications, which opened June 1, will be assessed based on the percentage of the committed DC rate reduction, the number of homes projected to be built as a result of the relief, and the municipality’s financial contribution. Priority will be given to housing-enabling projects based on the number of homes they support.
The program has drawn widespread support from construction industry leaders across the province.
Scott Anderson, CEO of the Ontario Home Builders’ Association (OHBA), said in a statement that builders look forward to working with municipalities to build more affordable homes.
“The sooner municipalities can begin reducing development charges across all home types and make new projects viable, the sooner builders get more homes built,” he said.
David Wilkes, president and CEO of the Building Industry and Land Development Association (BILD), called the initiative historic.
“Lowering development charges will help address the economic viability challenges that has stalled housing development across the GTA in recent years,” Wilkes said in the news release. “Through this initiative, municipalities and industry working in partnership can accelerate shovel-ready communities while ensuring that the building and development industry continues to provide well-paying jobs and is an engine of economic growth.”
Dani Gabriele, chair of the West End Home Builders Association, noted that the industry is finally seeing coordinated government action that can genuinely restart housing supply.
“The combination of HST relief and meaningful infrastructure and development charge support has the potential to improve project viability, support affordability, and help get shovels back in the ground,” she said, adding that local governments must work alongside the province and Ottawa to create conditions that support housing construction.
Patrick McManus, executive director of the Ontario Sewer and Watermain Construction Association, highlighted the necessity of infrastructure investments to manage growth.
“Support for both large-scale housing infrastructure projects and targeted funding for small and rural municipalities will help move these projects forward while creating and sustaining skilled trades jobs across Ontario,” McManus said in the statement.
