The governments of Canada and Ontario are committing up to $697.2 million to the City of Vaughan for housing-enabling infrastructure after the municipality moved to substantially reduce development charges, a measure officials say could help unlock more than 120,000 new homes.
The funding, announced under the Development Charge Reduction Program (DCRP), recognizes Vaughan’s decision to reduce development charges by 50 per cent for residential projects from March 30, 2026, through March 31, 2029. Qualifying developments that reach specified construction milestones can also have development charges eliminated entirely between February 25, 2026, and October 31, 2027.
Development Charge Cuts Could Reduce Vaughan Housing Costs
The governments estimate Vaughan’s development-charge changes could reduce the cost of constructing a new home by as much as $98,056.
Combined with expanded HST relief of up to $130,000 for eligible new homes, the measures could provide total savings of as much as $230,000.
“By partnering with Ontario and municipalities like the City of Vaughan through the Development Charge Reduction Program, our government is helping families save up to $230,000 on the purchase of a new home when combined with the removal of the HST. We’re also unlocking over 120,000 new housing units while investing in the infrastructure that our communities need. This is what building strong at home looks like.”
The Honourable Maninder Sidhu, Minister of International Trade and Member of Parliament for Brampton East
The City of Vaughan estimates that lower construction costs and new infrastructure investment could support more than 120,000 housing units, increasing supply for both homebuyers and renters.
Funding Targets Roads, Water Systems and Emergency Services
The $697.2-million commitment is expected to support a range of infrastructure projects required to accommodate Vaughan’s continued residential growth.
Planned investments include water, wastewater and stormwater infrastructure, including a new watermain on Keele Street, upgrades to the Block 22 watermain and improvements to Black Creek.
Transportation projects include widening Huntington and Kirby roads to four lanes, extending Bass Pro Mills Drive from Highway 400 to Weston Road and expanding sections of Teston Road. The plan also includes replacing the Canadian Pacific Kansas City rail bridge to accommodate the widening of Highway 7 to eight lanes.
Funding is also expected to support emergency infrastructure, including a new double-bay fire station at Rutherford Road and Dufferin Street.
Vaughan’s Housing Strategy Draws Government Support
“Today’s investment will make homes more affordable for Vaughan families and help keep workers on the job in the face of President Trump’s tariffs. Mayor Del Duca and Vaughan council’s early leadership in lowering development charges, along with today’s provincial and federal funding, shows what Team Canada can do when we work together to protect workers and families.”
The Honourable Doug Ford, Premier of Ontario
Vaughan Mayor Steven Del Duca said reducing development charges is part of the city’s effort to address affordability while ensuring infrastructure keeps pace with growth.
“Making life more affordable for Vaughan residents is a top priority. Vaughan has been at the forefront of addressing housing affordability by taking decisive action to reduce development charges and lower the costs that too often get passed on to homebuyers. I want to thank Premier Ford, Minister Rob Flack and the Government of Canada for recognizing the leadership Vaughan has shown and for supporting our city through the Canada—Ontario Development Charge Reduction Program. This funding represents an important step toward a more collaborative approach to building the infrastructure needed to support responsible growth. At the City of Vaughan, we will continue taking bold action to get more homes built, create more good-paying construction jobs and make home ownership more attainable for young families, while ensuring Vaughan remains a place where residents and families can live, grow and thrive for generations to come.”
Steven Del Duca, Mayor of Vaughan
Canada-Ontario Partnership Backs Housing-Enabling Infrastructure
The initiative forms part of a broader Canada-Ontario infrastructure partnership established in March 2026. Under the arrangement, the two governments agreed to a cost-matched structure providing a combined $8.8 billion over 10 years for infrastructure investment in Ontario.
The DCRP prioritizes municipalities that reduce residential development charges by between 30 and 50 per cent or more and maintain those reductions for at least three years.
“The Building Industry and Land Development Association (BILD) welcomes the announcement today by the Federal and Provincial governments and the City of Vaughan on the funding of $697.2 million and the reduction of development charges by 50 per cent for three years under the Development Charges Reduction Program (DCRP). This change will improve new housing project economic viability, resulting in increased housing supply and mix to meet the needs of growing communities, and will help support the hundreds of thousands of jobs in the residential and non-residential construction sectors in Ontario.”
Dave Wilkes, President and CEO, Building Industry and Land Development Association (BILD)
The funding remains subject to the signing of the Canada-Ontario Build Communities Strong Fund agreement, government due diligence and a transfer payment agreement between Ontario and Vaughan. Municipalities participating in the DCRP must contribute at least 10 per cent of eligible project costs.
For Vaughan, the agreement links lower development charges with substantial public investment in the roads, utilities and community facilities required to support one of the Greater Toronto Area’s fastest-growing housing markets.
Evan McKenzie is a contributor at Vaughantoday.ca, covering a wide range of topics including local news, politics, business, technology, sports, entertainment, and lifestyle. He focuses on clear, balanced reporting that helps readers stay informed about current events and issues that matter to their communities. His work aims to provide useful information, timely updates, and relevant stories presented in an accessible and reader-friendly way.