Ontario Construction News staff writer
The City of Vaughan is set to receive up to $697 million from federal and provincial governments after it decided to lower development charges. This move aims to speed up residential construction and make housing more affordable.
This funding comes through the Canada-Ontario Development Charge Reduction Program, which acknowledges Vaughan’s pledge to cut development charges by 50% for residential projects between March 30, 2026, and March 31, 2029. It will also temporarily waive the fees for eligible residential developments from Feb. 25, 2026, until Oct. 31, 2027.
“I applaud Premier Ford, Minister Rob Flack, the Government of Ontario and the Government of Canada for taking bold and creative action to address the housing crisis,” Mayor Steven Del Duca said in a statement.
He noted that Vaughan has worked on reducing costs that can be passed down to homebuyers.
“Making life affordable for Vaughan residents is a top priority for the City of Vaughan,” Del Duca said. “We have been at the forefront of addressing housing affordability by taking decisive action to get more shovels in the ground and lower the costs that too often get passed on to homebuyers.”
Development charges are fees collected by municipalities from developers to help fund infrastructure needed for growth.
Vaughan previously had some of the highest development charges in the Greater Toronto Area. The current rate for low-rise residential construction in the city is now $50,193, compared with a rate of $94,466 before reductions were introduced in November 2024.
Del Duca first proposed a member’s resolution in September 2024 directing city staff to look into ways to modify the city’s development charge bylaw. Council later approved a policy on Nov. 19, 2024, enabling reductions through agreements.
More recently, Vaughan Council ratified a policy during its April 28, 2026 meeting that temporarily brings development charges down to zero for qualifying residential developments. This exemption began retroactively on Feb. 25 and will last until Oct. 31, 2027.
The broader agreement with both federal and provincial governments includes a permanent reduction of development charges by half for residential developments from March 30, 2026 through March 31, 2029.
Del Duca stated that government funding reflects Vaughan’s commitment to lowering barriers related to housing construction.
“Development charges have become an unfair tax burden on homebuyers,” he said.
The city plans to keep pursuing initiatives aimed at speeding up residential construction and making homeownership more accessible.
“Vaughan is not standing still,” Del Duca said. “We will continue taking bold action to accelerate housing construction, create better-paying construction jobs and make homeownership more attainable for residents and young families so they can live and thrive here for generations to come.”
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