Ontario Construction News staff writer
The City of Guelph will receive up to $48.3 million in federal and provincial funding for water and wastewater infrastructure after committing to reduce development charges by 30 per cent for all housing types over three years.
The funding through the Development Charge Reduction Program is intended to support infrastructure needed to accommodate new housing. Guelph’s development charge reductions will run from March 30, 2026, to March 31, 2029.
The funding is subject to a Canada-Ontario agreement under the Build Communities Strong Fund, further due diligence by both governments and a transfer payment agreement between Ontario and the city.
The proposed infrastructure work includes upgrades to the biosolids facility at the city’s Water Resource Recovery Centre, a new treated-water booster pumping station at the Verney Booster Pumping Station and associated watermain infrastructure.
The funding would also support construction of a new Clythe Water Treatment Plant, booster pumping station and storage facility, along with water and wastewater servicing infrastructure to support regional growth.
The city estimates the development charge reductions and investment in housing-enabling infrastructure could help unlock 27,675 new homes.
The reductions are expected to lower the cost of building a new home in Guelph by up to $21,623. Combined with expanded harmonized sales tax relief on eligible new homes, the measures could provide savings of up to $151,623 per home, according to the province.
Ontario and the federal government agreed in March 2026 to provide a combined $8.8 billion over 10 years for infrastructure investments in the province through a cost-matched funding arrangement. The federal contribution will flow through the Build Communities Strong Fund.
The governments also agreed to provide relief on the full HST for eligible new homes purchased between April 1, 2026, and March 31, 2027, with savings of up to $130,000.
“Guelph is committing to reduce development charges by 30 per cent to help encourage housing development, and this federal and provincial investment helps fund the vital water and wastewater infrastructure needed to support those new homes,” Mayor Cam Guthrie said.
Rob Flack, Ontario’s minister of municipal affairs and housing, said the development charge reductions and HST relief are intended to lower housing costs and make homeownership more accessible.
Dominique O’Rourke, MP for Guelph, said the funding would help lower the cost of new housing while supporting infrastructure needed for growth.
The Development Charge Reduction Program is part of the Canada-Ontario Partnership to Build. It provides funding over 10 years for infrastructure projects that enable housing, prioritizing municipalities that reduce development charges for all residential types by at least 30 per cent and maintain the reductions for at least three years.
