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Federal and Ontario Governments Cut Municipal Development Charges by Up to 50 Percent

The $8.8 billion joint investment aims to halve municipal development charges for three years to lower new home costs and stimulate construction amid housing shortfalls, officials said.

  • The federal and Ontario governments will jointly invest $8.8 billion over 10 years to reduce municipal development charges by up to 50% for three years in Ontario to increase housing supply, announced by Prime Minister Mark Carney and Premier Doug Ford along with Toronto Mayor Olivia Chow.
  • Funding will be given based on municipal project proposals, prioritizing high-growth municipalities that commit to reducing development charges by 30 to 50%, aiming to lower costs and encourage new housing developments.
  • The province is waiving the Harmonized Sales Tax for eligible new homes under $1 million for one year, potentially saving homebuyers up to $200,000 in taxes and fees combined with the development charge reductions.
  • Toronto will receive funding for the Waterfront East LRT transit project, a $3 billion plan to improve connectivity, supported by federal, provincial, and city governments to aid rapidly growing areas with transit and new housing.
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Carney and Ford pledge $8.8B to slash homebuilding fees in half

Move will help 'unfreeze' GTA condo market, Carney says

·Stratford, Canada
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The Lethbridge HeraldThe Lethbridge Herald
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Feds, Ontario pool $8.8B for housing infrastructure to cut development fees

OTTAWA — The federal and Ontario governments said Monday they will together invest billions of dollars in local infrastructure spending to help cities cut

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iPolitics broke the news in Canada on Monday, March 30, 2026.
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