St. Thomas is set to receive up to $19.6 million in funding from both the provincial and federal governments over the next ten years to help lower development charges and support housing-related infrastructure projects.
As part of the Development Charge Reduction Program, the city plans to cut development charges by 30 percent for single-detached homes and multi-unit residences, while other types of housing will see a reduction of 50 percent. These changes will take effect from March 2026 until March 2029.
Local officials came together to announce this funding at a new section of the Shaw Valley subdivision on Thursday, Oct. 15.
“There’s no doubt, folks, we’re in an affordability crisis in many ways, but especially when you talk about housing,” said Elgin-Middlesex-London MPP Rob Flack, who also serves as the minister of municipal affairs and housing.
The federal and provincial governments have agreed to provide additional relief on the full HST for eligible new homes from April this year through March 2027, allowing homebuyers to save up to $130,000 off the price of a new house.
Officials from Ontario stated in a news release that these reductions in development charges over three years are expected to lower building costs for new homes in the city by as much as $5,691 per home.
MPP Flack mentioned that homebuyers could end up saving anywhere between $80,000 and $135,000 overall on their new home purchases.
“By building infrastructure, we’re not only building homes; we’re creating opportunities for skilled trade workers, we’re supporting Canadian industries and strengthening our economy,” said London West MP Arielle Kayabaga, deputy government house leader in Ottawa.
“You see the big cheque behind us; the dollar amounts on it are funds that won’t come out of developers’ pockets,” noted Mayor Joe Preston. “That’s also an amount that won’t come out of new home buyers.”
The city estimates that with these reductions in development charges and investments into housing-related infrastructure projects, around 6,196 homes could be constructed-providing more options for both buyers and renters.
Source link
