Municipalities receiving up to $84.4 million for infrastructure in exchange for reducing development charges for three years

WINDSOR, ON, Oct. 23, 2026 /CNW/ -- Today, the Governments of Canada and Ontario announced that the City of Windsor and the Town of Tecumseh are collectively receiving up to $84.4 million through the Development Charge Reduction Program (DCRP) in recognition of their commitment to reduce development charges by 70 per cent for the City of Windsor and by 50 per cent for the Town of Tecumseh for residential developments from March 30, 2026 to March 31, 2029. The funding will help build more homes and community infrastructure while advancing the province's plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

The reduction in development charges over this three-year period is estimated to reduce the cost of building new homes by up to $49,452 per home in Windsor. In Tecumseh, the reduction is estimated to reduce the cost of building new homes by $18,078 per home.

In March 2026, Canada and Ontario agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario, with Canada's share of the funding flowing through the Build Communities Strong Fund (BCSF).

The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026 to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. When combined with the DCRP, these initiatives could save families in Windsor up to $179,452 and families in Tecumseh up to $148,078.

Construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock 19,263 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

Subject to the signing of a Canada-Ontario BCSF agreement, further due diligence by both governments and the signing of an Ontario-municipal Transfer Payment Agreement, the DCRP will provide the City of Windsor with up to $77.6 million to support improvements to the City's stormwater management and roadway infrastructure, including widening and extending key road corridors and constructing new stormwater infrastructure. The Town of Tecumseh will receive up to $6.8 million to support new trunk sanitary sewer infrastructure.

Delivering on the Canada-Ontario Partnership to Build, the BCSF and the DCRP are providing funding over 10 years for housing-enabling infrastructure projects. Funding is being prioritized for municipalities that reduce development charges for all residential types by 30 to 50 per cent or greater and maintain the reductions for at least three years.

Quotes

"Building more homes requires strong partnerships and investments that make it easier and more affordable to build. Through the Development Charge Reduction Program, we are working with Ontario and the municipalities of Windsor and Tecumseh 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 Windsor and Tecumseh and support Ontario's growing economy."

Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax

"Ontario is growing, and we need to ensure our communities have the housing and infrastructure to keep pace. That is why our government continues to deliver programs like the Development Charge Reduction Program, which helps bring the dream of homeownership within reach for more hardworking Ontario families while positioning communities for growth." 

The Honourable Rob Flack, Ontario's Minister of Municipal Affairs and Housing

"Windsor is focused on protecting affordability and investing in the infrastructure, programs and services needed to help build more homes, create more jobs, and continue building a resilient and sustainable community. Through our Provincial Housing Pledge and our Housing Solutions Made for Windsor strategy, we've been doing our part to help get more homes built faster across all types and price points needed. This significant transformational investment of $77.6 million from the governments of Ontario and Canada allows us to reduce development charges by 70 percent for the next three years, with direct and significant savings for those developers building and those families looking to create a home in Windsor. The projects will unlock the potential for thousands of housing units, help create vital infrastructure needed for our regional hospital, and more. We thank Premier Ford, Minister Flack, MPP Dowie, and all our federal and provincial partners for investing to protect our future."

Drew Dilkens, Mayor of the City of Windsor

"The DCRP partners the three levels of government in a progressive solution that offers homebuyer savings today and spurs residential development to help address the current housing shortages in our region. For Tecumseh, it provides investment capital for new infrastructure that will support the building of over 700 more homes in the Tecumseh Hamlet Secondary Plan Area. We are grateful for our strong partnership with the Ontario and Federal governments further enabled through the Development Charge Reduction Program."

Gary McNamara, Mayor of the Town of Tecumseh

"UnderPremier Ford's leadership, our government is investing in the critical infrastructure Windsor and Tecumseh need to build more homes, lower costs for homebuyers, create good-paying jobs, and strengthen our communities."

Andrew Dowie, MPP for Windsor–Tecumseh

This funding is great news for Windsor and Tecumseh, and for the families hoping to call it home. 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."

Scott Andison, CEO of the OHBA

"RESCON commends Minister of Municipal Affairs and Housing Rob Flack as he continues to work to reduce municipal development charges and to make housing more affordable for Ontarians. Reducing DC costs in Windsor, Tecumseh and across Ontario's municipalities is a major step towards affordability. Premier Doug Ford and Minister Flack are leading the way on development charge reduction and regulatory reform, sales tax relief and approval process changes. RESCON fully supports these efforts by Premier Ford and Minister Flack."

Richard Lyall, President of RESCON

"Reducing development charges can significantly improve project viability and unlock greater investment in new housing. Programs like this create better conditions for more homes to move forward, including purpose-built rental housing, giving people more choice in where and how they live. We welcome continued collaboration between governments and municipalities such as Windsor and Tecumseh to reduce barriers, support growth and help increase housing supply across Ontario." 

Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario

"Today's announcement is welcome news for families across Windsor-Essex and right across Ontario. Every dollar of relief on development charges is a dollar that goes back into building homes. Our members are housing experts. We know what it takes to get a home built, and we know what it costs. When government clears a path — and works with municipalities to ease the price on development charges — it's the home buyer who benefits most. It's about building within a price margin people can afford, and it moves us closer to the goal of home ownership."

Melissa Schenk, CEO, Windsor-Essex Home Builders Association

"Across the province, we are pleased to see more municipalities rowing in the same direction and taking bold action to address and reduce development charges. These efforts are necessary for getting more homes built and are a key advocacy priority for OREA.

For municipalities like Windsor and Tecumseh, this investment from the Development Charge Reduction Program will go a long way towards building the infrastructure necessary to enable more housing. We look forward to seeing the impact that this will have on local communities."

Kim Fairley, 2026 OREA President

"As builders, we've witnessed firsthand how challenging the environment has been for homebuilders and prospective homebuyers alike. Development charges can be one of the biggest obstacles in getting shovels in the ground, and this funding through the DCRP will be a gamechanger when it comes to increasing the housing supply across Windsor and Tecumseh. We applaud the provincial and federal governments for supporting municipalities in lowering these costs and helping builders move more homes from planning to construction."

Norbert Bolger, Chair, Windsor-Essex Home Builders' Association

Quick Facts

• Funding through the DCRP and the BCSF will support vital housing-enabling infrastructure projects, such as water/wastewater systems, roads, bridges, transit, fire stations and police detachments, along with community features to establish and enrich neighborhoods like libraries or recreation centers.
• Federal funding for the BCSF projects is subject to the signing of the Canada-Ontario BCSF bilateral agreement, as well as federal review and approval of project funding.
• Receipt of the funding, and confirmation of approved projects, will be subject to the City of Windsor and the Town of Tecumseh entering into a Transfer Payment Agreement with Ontario and complying with program requirements.
• Municipalities must contribute a minimum of 10 per cent of project costs as part of the DCRP.
• Of 444 municipalities in Ontario, more than 200 currently levy development charges.

Additional Resources

• Ontario and Canada Sign Historic Partnership to Build Homes, Transit and Communities

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SOURCE Department of Housing, Infrastructure and Communities