Ontario budgets $8.8B to cut fees
- Prime Minister Mark Carney and Ontario Premier Doug Ford announced a Canada-Ontario housing deal on March 30 that would spend $8.8 billion over 10 years to lower municipal development charges. - Ottawa and Queen’s Park each pledged $4.4 billion, with the program tied to municipalities that cut development charges by 30 to 50 per cent and keep them low. - The money targets infrastructure behind new housing, not direct buyer rebates, as cities warn lower fee revenue could leave gaps in roads, pipes and transit. (ontario.ca)
Ontario and Ottawa have agreed to spend $8.8 billion over 10 years to help municipalities cut development charges tied to new homes. (ontario.ca) Prime Minister Mark Carney and Premier Doug Ford announced the deal on March 30, with each government pledging $4.4 billion. The plan links that money to housing-enabling infrastructure and to municipal decisions to reduce and maintain low development charges. (ontario.ca 1) (ontario.ca 2) Development charges are one-time municipal fees builders pay to help cover growth-related costs such as water, wastewater, roads and transit. Ontario’s backgrounder says cities that cut those charges by 30 to 50 per cent would be prioritized for the new funding. (ontario.ca) The announcement does not guarantee an automatic cut in home prices. The funding is meant to replace part of the revenue cities would otherwise collect upfront, and the savings will depend on where a project is built and what charges that municipality levies. (ontario.ca) (globalnews.ca) Ontario says the package sits alongside an expanded Harmonized Sales Tax rebate on new homes that could save eligible buyers up to $130,000. The province’s housing page says the broader plan combines tax relief, lower development costs and infrastructure spending. (ontario.ca) Industry groups backed the move and said government charges can account for 25 to 30 per cent of a new home’s cost. The Toronto Regional Real Estate Board said development charges alone can reach up to 20 per cent of a purchase price. (theglobeandmail.com 1) (theglobeandmail.com 2) Municipal officials have raised a different concern: if development-charge revenue falls faster than replacement funding arrives, cities still have to pay for pipes, roads and services for growing neighbourhoods. CBC reported Kitchener staff warned of financial pressure after earlier provincial changes reduced charge collections. (cbc.ca) Some northern Ontario leaders also said the new program appears geared toward southern Ontario markets where development charges are highest and housing starts are larger. CBC reported Timmins Mayor Michelle Boileau said local building costs are driven heavily by transportation and rock-blasting costs, not just fees. (cbc.ca) The next test is municipal uptake. The province and Ottawa have put the money on the table, but the actual fee cuts — and any effect on housing starts or buyer prices — will be decided city by city. (ontario.ca) (globalnews.ca)
