‘We’re challenging developers to put their money where their mouth is and start building’
Ontario Construction News staff writer
Mississauga Mayor Carolyn Parrish is challenging the building industry to act after Peel Region council approved major financial incentives to spur housing construction.
“We’re taking a very dramatic step here,” Parrish said during the meeting. “We’ll be the first region to do this … and I think we’re really setting a bar for the rest of the province and we’re challenging the developers to start putting their money where their mouth is and start building.”
The move comes in response to what council described as an urgent need for housing of all types — including low-rise, mid-rise, high-rise, affordable, and purpose-built rental — and concern that “very few residential units will start construction over the next two years without interventions in the form of incentives.”
Under the approved plan, Peel will cut its residential development charges by 50 per cent from July 10 to Nov. 13. The remaining charges will be deferred without interest until the first occupancy permit is issued, provided a building permit for footings and foundations has been granted under the Building Code.
The program is expected to be funded through grants in lieu, pending a financial agreement with the provincial government.
Council cited rising housing costs, driven in part by municipal charges and a sluggish market, as justification for the move.
Danielle Binder, senior director of policy and advocacy at the Building Industry and Land Development Association (BILD), called the announcement “monumental.” She noted that discussions with Peel staff began in February, as the housing market continued to weaken.
“The state of the industry has not changed,” she said. “The market and the economy overall have not improved, in fact, sales and starts are even worse.
“Only 13 condos and 18 single family homes sold in February – an all-time low – for the entire region,” she said. “The figures today are no better, with only 15 condos and 69 single family homes sold in all of Peel in May.”
Binder warned that nearly half of residential construction jobs in the GTA are at risk without government action, and projected a 60 per cent drop in housing starts by 2027 compared to 2024 levels, along with a $10 billion decline in construction investment.
Regional Chair Nando Iannicca confirmed that the Ministry of Municipal Affairs and Housing has pledged $575 million in additional support to two existing funds that back housing-related infrastructure.
“With the changing economic climate, there is a greater need to get shovels in the ground to build more homes in Ontario,” Parliamentary Assistant Robert Flack wrote in a letter to Iannicca.
A new public utility model for water and wastewater — aimed at supporting high-density, shovel-ready housing projects — is also under consideration and could be implemented first in Peel.
Key elements of the approved motion include:
- Deferring development charges without interest until the first occupancy permit is issued — reducing upfront costs for builders and improving project viability.
- Temporarily cutting development charges by 50% for new residential units, starting July 10, 2025, until November 13, 2026 — funded by grants-in-lieu. In the short term, until the Provincial and Federal Governments provide funding
- Collaborating with the Province on a proposed “Peel Utility Model” for funding infrastructure in a more sustainable, long-term way.
- Engaging with the development industry, including BILD, to ensure cost savings help improve affordability for future homeowners and renters.
- Applying for the Canada Housing Infrastructure Fund – Municipal Direct Stream, to request grants used to help offset the cost of these initiatives and protect Peel services.
