Ontario Construction News staff writer
The City of Barrie is set to receive up to $129 million through the Development Charge Reduction Program (DCRP) to support a 50 per cent reduction in development charges for residential development between March 30, 2026, and March 31, 2029.
This funding will help pay for infrastructure needed to manage growth, while the reduced development charges are expected to make it cheaper to build new homes in the city.
The three-year reduction could lower the cost of building new homes in Barrie by as much as $62,223 per home.
“Reducing development charges is about more than just lowering construction costs. It’s about making it possible to get more homes built, at prices more families can afford,” said Scott Andison, CEO of the Ontario Home Builders Association. “OHBA has been clear that reducing the cost of delivering new homes will take meaningful action; the DCRP program does that.”
In March 2026, Ontario and the federal government agreed on a cost-matched funding structure that will provide a combined $8.8 billion over ten years for infrastructure investments in Ontario. The federal share will flow through the Build Communities Strong Fund.
Subject to signing a Canada-Ontario BCSF agreement, Barrie will receive up to $129 million for infrastructure projects such as:
construction of a new digester and integration with the existing solids treatment train; conversion of the existing biological system to conventional fine-bubble diffused aeration and replacement of the existing site electrical infrastructure; and construction of a new advanced nutrient-removal treatment train.
The city estimates that construction cost savings during this period combined with investment in housing-enabling infrastructure could support creating 23,364 new homes.
“By reducing the cost of building new homes, we are making housing more attainable while creating more opportunities for skilled tradespeople and local businesses who build our community,” said Mayor Alex Nuttall.
The Building Industry and Land Development Association (BILD) also welcomed this announcement.
“These changes will immediately improve project viability and our members look forward to continuing to get shovels in the ground and welcoming future homeowners to Barrie,” said Dave Wilkes, BILD president and CEO.
The DCRP provides funding to municipalities that reduce development charges for all residential types by 30 to 50 per cent or more and maintain these reductions for at least three years. Municipalities must contribute at least 10 per cent of eligible project costs.
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