Ontario Construction News staff writer
Essex County municipalities will receive up to $105.8 million in provincial and federal funding to support housing-enabling infrastructure in exchange for reducing or eliminating development charges on new homes.
The funding through the Development Charge Reduction Program (DCRP) is intended to help municipalities accommodate growth while lowering the upfront cost of building housing.
The governments of Canada and Ontario estimate the development charge reductions could lower the cost of a new home by up to $40,862, depending on the municipality, including savings from reductions at both the county and local levels.
Combined with temporary federal and provincial relief on the full harmonized sales tax (HST) for eligible new homes, the initiatives could save homebuyers in the region up to $170,862.
The governments estimate the measures, along with investments in housing-enabling infrastructure, could unlock 36,372 new homes in Essex County.
“Everyone who wants to own a home deserves the chance to own one,” said Melissa Schenk, CEO, Windsor-Essex Home Builders Association. “This is one more step toward making home ownership a reality for more Ontario families. Our members are ready to get shovels in the ground faster and build more homes.”
Under the program, Essex County will receive up to $51.2 million for eliminating development charges on all housing types in 2026 and 2027, followed by reductions of 75 per cent in 2028, 50 per cent in 2029 and 25 per cent in 2030.
The Town of LaSalle will receive up to $25.4 million for eliminating development charges on all housing types from March 30, 2026, to March 31, 2029, including in the Reaume Sanitary Service Area.
The Municipality of Lakeshore will receive up to $11.8 million, the Town of Essex up to $8.8 million and the Town of Kingsville up to $8.4 million. Each municipality has committed to reducing development charges by 50 per cent on all housing types from March 30, 2026, to March 31, 2029.
Funding is intended to support infrastructure projects needed to accommodate residential growth, including water and wastewater systems, roads, bridges, transit facilities and community amenities.
Municipalities must contribute at least 10 per cent of project costs and enter into transfer payment agreements with Ontario to receive funding. Federal funding is also subject to the signing of a Canada-Ontario agreement and federal review and approval of projects.
“Reducing development charges is about making it possible to get more homes built, at prices more families can afford,” said Scott Andison, CEO, Ontario Home Builders Association. “OHBA has been clear that reducing the cost of delivering new homes will take meaningful action; the DCRP program continues to accomplish that.”
The DCRP prioritizes municipalities that reduce development charges by at least 30 to 50 per cent for all residential types and maintain the reductions for at least three years.
Funding is also planned for other municipalities in the Windsor-Essex region. The Town of Tecumseh will receive up to $6.8 million for reducing development charges by 50 per cent from March 30, 2026, to March 31, 2029. Windsor will receive up to $77.6 million for reducing the charges by 70 per cent over the same period.
The governments said the program is intended to increase housing supply, improve affordability and support economic development by helping municipalities build the infrastructure needed for new residential construction.
