London Mayor optimistic as details emerge about $8.8B plan to slash Development Charges on new homes in Ontario

New homes under construction in London, Ont. (File)

The federal and provincial governments have opened the application process for municipalities to participate in a new Development Charge Reduction Program (DCRP).

Details of the application process were released on Monday.

London Mayor Josh Morgan is expressing initial optimism, but still needs some questions answered.

“There are some details that have to be looked into,” Morgan explained. “Our staff have to do the analysis, but I can tell you from my perspective, I want to participate in any program that has no net new impact on property taxes.”

Development Charges are fees paid to the municipality on new construction that covers growth-related infrastructure costs including new roads, sewers, firehalls, and library branches.

Within London’s Urban Growth Boundary (UGB), DCs on new construction range from $34,195 for row housing to $50,564 for single detached homes.

In March, the federal and provincial governments announced an $8.8 billion funding program to support housing-enabling infrastructure projects (like new roads and sewers) in order to reduce development charges on new homes and spur construction.

According to a provincial news release, “the Development Charge Reduction Program will deliver federal and provincial funding over 10 years for housing-enabling infrastructure projects, with funding prioritized for municipalities that reduce development charges for all residential types by 30 per cent to 50 per cent or greater and maintain the reductions for at least three years.”

Municipalities would be expected to contribute 10 per cent of the cost of each housing-enabling project.

Morgan wants to know if existing incentive programs that offer DC exemptions can be counted as part of that 10 per cent municipal contribution.

“I’m also hopeful that the province will recognize municipal contributions to DC reductions already,” he said. “We’ve had a 100 per cent DC waiver in our downtown core for some time.”

The mayor believes reducing DCs could get more housing to break ground.

“Significant dollars have been put on the table by the provincial and federal governments to support that. I want to commend that action. That’s listening to municipalities,” Morgan said. “How our existing programs are recognized, I think, is another important conversation that we can talk about in partnership and collaboration.”

The deadline for municipalities to apply is June 19, 2026.