Ontario Construction News staff writer
The City of St. Thomas is set to receive up to $19.6 million from both the federal and provincial governments to help build a new wastewater treatment facility, following the city’s promise to lower development charges for new housing.
This funding comes through the Development Charge Reduction Program (DCRP), part of the Canada-Ontario Partnership to Build, which aims to support the infrastructure needed for housing growth.
“This funding is great news for both the City of St. Thomas, and for the families hoping to call it home,” said Scott Andison, CEO of the Ontario Home Builders Association (OHBA). “Reducing development charges is about making it possible to get more homes built, at prices more families can afford.
“OHBA has been clear that reducing the cost of delivering new homes will take meaningful action; the DCRP program continues to accomplish that.”
St. Thomas has agreed to cut development charges by 30 percent for single-detached homes and multi-unit housing, and 50 percent for other types of residential units, effective from March 30, 2026, until March 31, 2029.
The reductions are expected to decrease the cost of constructing a new home in the city by as much as $5,961. When combined with expanded HST relief on qualifying new homes, these measures could save homebuyers up to $135,961.
The city believes that these reductions in development charges along with funding for housing-related infrastructure could lead to unlocking 6,196 new homes.
“This is exciting news for the City of St. Thomas and another great step forward as our community continues to grow,” said Mayor Joe Preston. “We want people to be able to find a home here, build a life here and be part of everything that is happening in our city.
“Reducing development charges will help get more shovels in the ground, create more housing choices and support the people and businesses building our city.”
The funding is still subject to signing a Canada-Ontario Build Communities Strong Fund (BCSF) agreement, further checks by both levels of government, and a transfer payment agreement between Ontario and the municipality.
In March 2026, Ontario and Ottawa established a cost-matching funding plan providing a total of $8.8 billion over ten years for infrastructure projects in Ontario. The federal contribution will be allocated through BCSF.
“Alongside our federal and municipal partners, our government is creating conditions so communities like St. Thomas can continue growing and thriving,” said Rob Flack, Minister of Municipal Affairs and Housing.
“As MPP for Elgin-Middlesex-London, I am proud of how great this area’s quality of life is. Investments like this will help St. Thomas keep growing as a strong community where more people can settle down and raise families.”
Arielle Kayabaga, MP for London West mentioned that this program aims at lowering construction costs while supporting necessary infrastructure in expanding communities.
“Building more homes requires strong partnerships and investments that make it easier and cheaper,” Kayabaga stated. “Through the Development Charge Reduction Program, we’re collaborating with Ontario and St. Thomas City Council to reduce costs while also ensuring we have supportive infrastructure needed for complete communities. This investment will help make building homes affordable for families in St. Thomas while boosting Ontario’s economy.”
The DCRP prioritizes municipalities that cut development fees on residential projects by at least 30 percent or more while maintaining those reductions for three years or longer.
Eligible projects under this program include water systems or wastewater management facilities along with roads, bridges transit systems fire stations police detachments libraries recreation centers among others.
Municipalities must cover at least 10 percent towards project expenses under this initiative.
Both levels of government have also decided on full HST relief on eligible new home purchases made between April 1st 2026 till March thirty-first twenty twenty-seven offering savings reaching up towards one hundred thirty thousand dollars specifically targeting home buyers directly benefiting them during purchase process.
Across Ontario there are over two hundred municipalities charging developmental fees out off four hundred forty-four total municipalities province wide.
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