Hamilton Receives $572 Million for Infrastructure Improvements

Hamilton is set to receive $572 million from the federal and Ontario governments aimed at supporting major infrastructure projects, which include new housing developments, while the city waives residential development charges for three years.

Municipal Affairs and Housing Minister Rob Flack was present with Mayor Andrea Horwath and federal representatives in Stoney Creek, in front of a housing project by Hamilton’s Marz Homes, for the announcement on Wednesday.

This funding will facilitate six initiatives, such as further widening and reconstruction work on Barton Street, Lewis Road, Rymal Road, and Garner Road. It will also fund expansions at the Woodward Avenue Wastewater Treatment Plant and Greenhill Water Pumping Station, according to a news release from the city.

Horwath referred to this funding as the most significant investment in roads, water, and wastewater infrastructure in Hamilton’s history.

“This is a historic investment in Hamilton’s future,” she said.

“This investment will build and improve roads, expand water and wastewater capacity, and unlock the potential for more than 31,000 new homes across Hamilton.”

The city noted that the Woodward expansion is expected to increase wastewater capacity for up to 97,000 additional homes while the Greenhill project could accommodate another 4,400 homes.

Why Hamilton earned top marks

The $572 million comes from Ontario’s Development Charge Reduction Program (DCRP), part of a larger funding package – totaling $8.8 billion – that both federal and provincial governments committed to infrastructure investments over the next decade.

Cities receiving these funds must lower development charges by at least 30 percent for three years. They are also required to cover at least 10 percent of project costs.

Flack mentioned that Hamilton was recognized due to its complete removal of development charges.

“Hamilton got rid of them 100 percent, so that gave [them] the gold star.”

The charges will be removed for residential developments retroactively from March 30 this year until March 31, 2029.

Flack stated that Hamilton’s application was the strongest one submitted through this program.

“Full stop, it was the best application we received under the DCRP.”

Passing savings on to buyers

The province estimates that eliminating development charges could lower new home construction costs by as much as $100,442.

<p"When combined with up to $130,000 in savings enabled through expanded HST relief on eligible new homes," said an Ontario news release. "These initiatives could save Hamilton families over $230,000 off the cost of a new home."

John-Paul Danko , Liberal MP for Hamilton West-Ancaster-Dundas , who previously served on council , stressed that builders need to ensure consumers benefit from these reduced costs.

He suggested those savings might also be used towards constructing more family-sized homes , like two- or three-bedroom units.

“Now that the cost.. has the potential to be reduced by hundreds of thousands of dollars , we want to make sure that savings is passed on to consumers.”

The city anticipates starting construction on Lewis Road in 2027 , Rymal Road in 2028 , and a section of Barton Street , stretching from Fruitland to Fifty Road , in 2029.

According to city data , Hamilton saw 4 ,074 housing starts in 2025 , representing a rise of 65 percent compared to last year.

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