Ontario Construction News staff writer
The City of Hamilton is getting up to $572 million from the Ontario and federal governments to help with housing-related infrastructure after deciding to remove development charges on all residential projects for three years.
This funding, revealed through the Development Charge Reduction Program, will back various infrastructure initiatives throughout Hamilton while the city waives residential development charges from March 30, 2026, until March 31, 2029.
Eliminating these charges is expected to cut the cost of building a new home by as much as $100,442, according to government estimates.
When combined with extended HST relief of up to $130,000 on qualifying new homes, these efforts could lower the overall cost of a new home in Hamilton by over $230,000.
Dani Gabriele, chair of the West End Home Builders’ Association, noted that this announcement addresses both construction costs and infrastructure needs for growth.
“Today’s announcement tackles both sides of that challenge: lowering the cost of building while investing in the roads, water and wastewater infrastructure needed to support new communities,” Gabriele said.
“As a local builder, I know what a difference that can make in determining whether homes get built. This is a meaningful investment in Hamilton’s future and in the people and families who want to call this community home.”
Hamilton believes that savings from reduced development charges alongside investments in housing-enabling infrastructure could allow for more than 31,000 new homes to be built.
The proposed $572-million funding will support various road, water and wastewater projects such as:
Widening and reconstructing Barton Street from Fruitland Road to Fifty Road into a five-lane multi-modal arterial road; Reconstructing Lewis Road from Highway 8 to Barton Street into an urban-standard multi-modal collector road; Widening Rymal Road from Glancaster Road to Upper Paradise Road and from Upper James Street to Dartnall Road into a five-lane urban arterial corridor; Widening and reconstructing Garner Road from Wilson Street to Glancaster Road in Ancaster into a five-lane urban arterial corridor; Expanding the Woodward water and wastewater treatment plant; and Upgrading capacity at the Greenhill Water Pumping Station.
Mayor Andrea Horwath described this announcement as a landmark investment for the city’s future.
“This is a historic investment in Hamilton’s future and one I have worked hard as Mayor to make happen,” Horwath said. “It represents the single largest investment in roads, water and wastewater infrastructure in our city’s history.”
She emphasized that Hamilton requires both additional housing options and supportive infrastructure for expanding communities.
“By eliminating residential development charges for three years and investing in the infrastructure our growing communities need, we can get shovels in the ground, increase housing supply and reduce costs for people looking to call Hamilton home,” she said.
This funding forms part of a wider agreement announced back in March 2026 where Ontario and Canada pledged a total of $8.8 billion over ten years for provincial infrastructure improvements. Canada’s portion will be distributed via the Build Communities Strong Fund.
The Ontario government along with federal authorities also agreed on removing full HST on newly constructed homes between April 1, 2026, and March 31, 2027. This will provide savings up to $130,000 for qualified buyers.
Rob Flack, Ontario’s Minister of Municipal Affairs and Housing stated that this Development Charge Reduction Program aims at assisting municipalities fund necessary growth-supportive infrastructure while lowering hurdles related to home construction.
“Across Ontario there is an urgent need for critical infrastructure along with various types of housing that can accommodate our rapidly growing communities,” Flack noted. “That’s why our government keeps rolling out programs like this one alongside our federal partners.”
Scott Andison CEO of the Ontario Home Builders’ Association remarked that development charges are among the biggest upfront expenses tied to constructing new homes.
“This is exactly what Ontario’s housing market needs,” Andison stated. “Development charges have become one of the largest upfront costs associated with building a new home so reducing them while directly investing into required growth-supportive infrastructure offers a more sustainable solution.”
Andison added that participating in this program might enhance project feasibility as well as affordability enabling more housing developments moving forward into construction stages.
The removal of development charges will take effect once approved by Hamilton City Council must remain valid for three years thereafter.
This funding also depends on finalizing an agreement under Canada-Ontario Build Communities Strong Fund after due diligence by both levels of government along with signing off on transfer payment agreements between Ontario’s administration along with Hamilton City officials.
Cities involved within Development Charge Reduction Program are required contribute at least ten percent toward eligible project expenditures while adhering strictly toward other requirements laid out within program guidelines.
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