Ontario Construction News staff writer
The City of Mississauga is broadening its development charge incentive program to speed up the building of purpose-built rental apartments.
Starting now, development charges will be waived for one-bedroom-plus-den and two-bedroom rental units. To take advantage of this, developers need to secure a building permit before November 13, 2026.
The Council approved this initiative last week, stating that it aims to help more rental projects transition from approval to actual construction at a time when rising costs have caused delays in developments throughout the area.
“Mississauga needs more rental housing for families who continue to be priced out of home ownership,” Mayor Carolyn Parrish said in a statement. “That’s why we’re eliminating development charges for more types of rental units.
“As a city, we have to do what we can to get rental developments across the finish line and shovels in the ground.”
This change follows actions taken in January 2025, when Mississauga became one of the first municipalities in Ontario to cut or eliminate development charges for residential buildings after the mayor’s housing task force report was released. The Region of Peel voted in June 2025 to align their incentives with those of the city.
Along with waiving development charges, several other housing initiatives were also approved.
A $44-million affordable rental housing incentive program, funded by federal support, provides financial incentives aimed at encouraging new affordable rental construction. The second round of applications is open until February 13, 2026.
The zoning bylaw has been updated to allow semi-detached homes and houses on smaller lots within residential neighborhoods.
To expedite higher-density projects near transit areas within protected major transit station zones, these areas will be ‘pre-zoned’ for development. This move positions the city as one of the first municipalities in Ontario to implement pre-zoning on such a large scale.
The municipality is also reviewing urban design requirements and making improvements to the condominium plan approval process as part of broader efforts aimed at streamlining housing approvals.
The expanded exemption from development charges is designed to enhance project feasibility and motivate developers to kick off new rental construction before the 2026 permit deadline.
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