Ontario and Canada funnel $572 million to Hamilton to eliminate development charges for three years

Ontario and Canada announced Wednesday that the City of Hamilton is receiving $572 million through the Development Charge Reduction Program in recognition of its commitment to eliminate development charges on all residential developments from March 30, 2026 to March 31, 2029.

The funding will help build housing and community infrastructure in Hamilton while supporting the province's plan to protect Ontario by investing in economic growth and job creation. The federal government's contribution flows through the Build Communities Strong Fund; the two governments cost-matched the structure.

The complete removal of development charges over the three-year period is estimated to reduce the cost of building new homes by up to $100,442 per home. Combined with up to $130,000 in savings enabled through expanded HST relief on eligible new homes — a federal measure running from April 1, 2026 to March 31, 2027 — these initiatives could save Hamilton families over $230,000 off the cost of a new home.

The City of Hamilton estimates that the construction cost savings over the development charge reduction period, along with the investment in housing-enabling infrastructure, would unlock over 31,000 new homes, supporting a housing market with more choice and greater affordability for homebuyers and renters.

In March 2026, Ontario and Canada agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario.