St. Thomas receives up to $19.6 million for wastewater treatment facility

Ontario Construction News staff writer

The City of St. Thomas will receive up to $19.6 million from the federal and provincial governments to support construction of a new wastewater treatment facility, following the municipality’s commitment to reduce development charges for new housing.

Money is being provided through the Development Charge Reduction Program (DCRP), part of the Canada-Ontario Partnership to Build, which supports infrastructure needed to accommodate housing growth.

“This funding is great news for both the City of St. Thomas, and for the families hoping to call it home,” said Scott Andison, CEO of the Ontario Home Builders Association (OHBA). “Reducing development charges is about making it possible to get more homes built, at prices more families can afford.

“OHBA has been clear that reducing the cost of delivering new homes will take meaningful action; the DCRP program continues to accomplish that.”

St. Thomas has committed to reducing development charges by 30 per cent for single-detached homes and multi-unit housing, and 50 per cent for other residential unit types, from March 30, 2026, to March 31, 2029.

The reductions are estimated to lower the cost of building a new home in the city by up to $5,961. Combined with expanded HST relief on eligible new homes, the initiatives could save homebuyers up to $135,961.

The city estimates the development charge reductions, together with funding for housing-enabling infrastructure, could unlock 6,196 new homes.

“This is exciting news for the City of St. Thomas and another great step forward as our community continues to grow,” said Mayor Joe Preston. “We want people to be able to find a home here, build a life here and be part of everything that is happening in our city.

“Reducing development charges will help get more shovels in the ground, create more housing choices and support the people and businesses building our city.”

The funding remains subject to the signing of a Canada-Ontario Build Communities Strong Fund (BCSF) agreement, further due diligence by both levels of government, and a transfer payment agreement between Ontario and the municipality.

In March 2026, Ontario and the federal government agreed to a cost-matched funding structure providing a combined $8.8 billion over 10 years for infrastructure investments in Ontario. The federal contribution will flow through the BCSF.

“Alongside our federal and municipal partners, our government is creating the conditions to ensure communities like St. Thomas can continue to grow and thrive,” said Rob Flack, Minister of Municipal Affairs and Housing.

“As MPP for Elgin-Middlesex-London, I am proud of the tremendous quality of life this area has to offer. Investments like this will help St. Thomas continue to grow as a strong, vibrant community where more people can put down roots, build a future and raise a family for generations to come.”

Arielle Kayabaga, MP for London West, said the program is intended to reduce housing construction costs while supporting the infrastructure needed for growing communities.

“Building more homes requires strong partnerships and investments that make it easier and more affordable to build,” Kayabaga said. “Through the Development Charge Reduction Program, we are working with Ontario and the City of St. Thomas to reduce the cost of new housing while supporting the infrastructure needed to build complete, thriving communities. This investment will help make homebuilding more affordable for families in St. Thomas and support Ontario’s growing economy.”

The DCRP prioritizes municipalities that reduce development charges for residential development by 30 to 50 per cent or more and maintain the reductions for at least three years.

Eligible infrastructure projects include water and wastewater systems, roads, bridges, transit facilities, fire stations and police detachments, as well as libraries and recreation centres.

Municipalities must contribute at least 10 per cent of project costs under the program.

The federal and provincial governments also agreed to provide full HST relief on eligible new homes purchased between April 1, 2026, and March 31, 2027, with savings of up to $130,000 for homebuyers.

Ontario has more than 200 municipalities that levy development charges, out of 444 municipalities across the province.