If the City of Hamilton’s applications to the Federal-Provincial Development Charges Reduction Program (DCRP) are successful, the municipality is seeking to provide a 100 per cent reduction in residential development charges over the next three years.
The DCRP is a cost-shared partnership between the Government of Canada and the Province of Ontario to provide $8.8 billion over 10 years to participating municipalities if they commit to reducing residential-related development charges by at least 30 to 50 per cent for three years.
Development charges are one-time fees collected from developers when building permits are issued and help pay for the infrastructure needed to support growth, including roads, transit, water, sewers, and emergency services.
The development industry has argued that high development charges have a negative impact on housing construction by significantly increasing costs.
Under the DCRP, eligible municipalities may receive grants for up to 90 per cent of eligible growth-related infrastructure project costs if they commit to reducing development charges.
At a special council meeting, councillors voted to make five applications under the DCRP, asking for a total of $561.8 million in funding.
The city is asking for $46.7 million to support Barton Street and Fifty Road improvements in Stoney Creek, $150.7 million to support Rymal Road and Garner Road improvements, $11.2 million for the Queenston Road Sewer Diversion Project, $21.8 million for Greenhill Water Pumping Station upgrades, and $331.5 million for the Woodward Wastewater Treatment Plant upgrades.
Applications for the program were due on June 19.
After reviewing the applications, officials will execute Transfer Payment Agreements with municipalities by Aug. 15, 2026.
The City of Hamilton’s General Manager of Finance and Corporate Services, Mike Zegarac, told Council that, if the municipality only receives part of their $561.8 million funding ask, then the development charge reduction offered by the city will be less than the planned 100 per cent exemption.
Council’s motion states that developers who have their development charges reduced under the program will also be required to demonstrate that the associated cost savings are transferred to homebuyers or renters through reduced purchase prices or rents.
The City of Hamilton’s application to the DCRP was strongly supported by the West End Home Builders’ Association, the Hamilton Chamber of Commerce, Cornerstone Association of Realtors, and the Hamilton-Halton Construction Association.
The four organizations wrote a joint letter to Council supporting the DCRP and the corresponding reduction in development charges.
They wrote, “Hamilton is already facing mounting affordability pressures, declining residential construction activity, and growing concerns regarding the city’s ability to attract and retain investment.”
“This is not simply a housing issue; it is an economic competitiveness issue, a jobs issue, and a city-building issue,” they continued.
“Programs of this scale and significance are truly once-in-a-generation opportunities that have the potential to reshape the city’s economic and housing future for decades to come. This initiative presents Hamilton with a rare chance to secure transformative infrastructure investment, unlock new housing supply, improve affordability, stimulate economic growth and job creation, and position the city as a leading destination for investment and development in Ontario,” the organizations’ representatives concluded.
It remains to be seen how much funding the city will receive and how much it will reduce development charges as a result.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
