City receiving up to $39.9 million for infrastructure in exchange for reducing development charges for three years
On Monday, November 9, 2026, the governments of Ontario and Canada announced that the City of Peterborough is receiving up to $39.9 million through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reduce development charges by 50 per cent for all housing types from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure in Peterborough while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
“Today’s investment is great news for Peterborough residents, supporting the construction of thousands of homes and saving families more than $34,000 off the cost of a new home,” said Premier Doug Ford. “Congratulations to outgoing Mayor Jeff Leal, as well as Peterborough council members, for working with us to bring the dream of homeownership within reach for Peterborough families. I look forward to working with incoming Mayor Michael Eamon as we continue to deliver on that mission.”
The reduction in development charges over the three-year period is estimated to reduce the cost of building new homes in Peterborough by up to $34,302 per home. When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in Peterborough up to $164,302.
“Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is why our government continues to deliver programs like the Development Charge Reduction Program, which helps position communities for future growth.”
In March 2026, Ontario and the federal government agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario, with Canada’s share of the funding flowing through the Build Communities Strong Fund (BCSF). The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026 to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. This is in addition to cost reductions for builders through the DCRP.
“Our government is committed to making housing more affordable by working with partners to remove barriers to building more homes,” said Emma Harrison, MP for Peterborough. “Through the Build Communities Strong Fund and the Development Charge Reduction Program, we are investing alongside Ontario and the City of Peterborough to lower development costs and support the infrastructure needed to build thriving communities. This investment will help make more homes attainable for families in Peterborough, while supporting local growth and creating a stronger future for the community.”
Subject to the signing of a Canada-Ontario BCSF agreement, further due diligence by both governments and the signing of an Ontario-municipal Transfer Payment Agreement, the DCRP will provide the City of Peterborough with up to $39.9 million to support roads and water infrastructure, including:
- Construction of a sanitary forcemain along the Otonabee River, a replacement trunk sanitary sewer on South Park Drive, two sanitary pumping stations, a trunk sewer to the city’s wastewater treatment plant and a looped trunk watermain system
- Roadway reconstruction and widening of existing four-lane corridors to five lanes, including replacement and increased capacity for storm servicing, wastewater servicing and water servicing.
“This partnership with the provincial and federal governments is an important step in preparing Peterborough for continued growth and creating more housing options for residents,” said Jeff Leal, Mayor of Peterborough. “It’s a significant investment in Peterborough’s future with the potential to support the construction of more than 9,200 new homes in our community. This funding will help advance significant infrastructure projects across the city while the development charge reduction will help lower the cost of building new homes. As our community grows in population, the investment will help ensure that our roads and water and wastewater systems have the capacity to grow with it.”
The City of Peterborough estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 9,276 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.
As part of the Canada-Ontario Partnership to Build, the DCRP is delivering funding over 10 years for housing-enabling infrastructure projects. Funding is being prioritized for municipalities that reduce development charges for all residential types by 30 to 50 per cent or greater and maintain the reductions for at least three years.
Quick Facts
- Funding through the DCRP will support vital housing-enabling infrastructure projects, such as water/wastewater systems, roads, bridges, transit, fire stations and police detachments, along with other community assets like libraries and recreation centres.
- Federal funding for the projects is subject to the signing of the Canada-Ontario BCSF bilateral agreement, as well as federal review and approval of project funding.
- Receipt of the funding and confirmation of approved projects will be subject to the City of Peterborough entering into a Transfer Payment Agreement with Ontario and complying with program requirements.
- Municipalities must contribute a minimum of 10 per cent of project costs as part of the DCRP.
- Of the 444 municipalities in Ontario, more than 200 currently levy development charges.
Author: Pete Fisher
Has been a photojournalist for over 30-years and have been honoured to win numerous awards for photography and writing over the years. Best selling author for the book Highway of Heroes - True Patriot Love
