Ontario Construction News staff writer
The City of Vaughan will receive up to $697 million from the federal and provincial governments after reducing development charges in an effort to accelerate residential construction and improve housing affordability.
Funding, provided through the Canada-Ontario Development Charge Reduction Program, recognizes Vaughan’s commitment to reduce development charges by 50% for residential developments between March 30, 2026, and March 31, 2029, as well as temporarily eliminate the charges for qualifying residential projects from Feb. 25, 2026, to Oct. 31, 2027.
“I applaud Premier Ford, Minister Rob Flack, the Government of Ontario and the Government of Canada for taking bold and creative action to address the housing crisis,” Mayor Steven Del Duca said in a statement.
He said Vaughan has taken steps to reduce costs that can ultimately be passed on to homebuyers.
“Making life affordable for Vaughan residents is a top priority for the City of Vaughan,” Del Duca said. “We have been at the forefront of addressing housing affordability by taking decisive action to get more shovels in the ground and lower the costs that too often get passed on to homebuyers.”
Development charges are fees municipalities collect from developers to help pay for infrastructure needed to accommodate growth.
Vaughan previously had some of the highest development charges in the Greater Toronto Area. The city’s available development charge rate for low-rise residential construction is now $50,193, compared with a published rate of $94,466 before Vaughan introduced reductions in November 2024.
Del Duca first tabled a member’s resolution in September 2024 directing city staff to examine options for addressing the city’s development charge bylaw. Council subsequently approved a policy on Nov. 19, 2024, allowing reductions through agreements.
More recently, Vaughan Council ratified a policy at its April 28, 2026, meeting that temporarily reduces development charges to zero for qualifying residential developments. The exemption took effect retroactively on Feb. 25 and will remain in place until Oct. 31, 2027.
The city’s broader agreement with the federal and provincial governments includes a 50% reduction in development charges for residential developments from March 30, 2026, through March 31, 2029.
Del Duca said the government funding recognizes Vaughan’s efforts to reduce barriers to housing construction.
“Development charges have become an unfair tax burden on homebuyers,” he said.
The city will continue to pursue measures aimed at accelerating residential construction and making homeownership more attainable.
“Vaughan is not standing still,” Del Duca said. “We will continue taking bold action to accelerate housing construction, create better-paying construction jobs and make homeownership more attainable for residents and young families so they can live and thrive here for generations to come.”
