Ottawa — The Ontario government is opening applications for a new program it says will reduce building costs and speed up construction of new homes.
The Development Charge Reduction Program (DCRP) will deliver federal and provincial funding over 10 years for housing-enabling infrastructure projects, a release reads, 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.
It’s part of a March partnership between the provincial and federal governments for a cost-matched structure to provide a combined $8.8 billion over 10 years, with Canada’s share of the funding flowing through the Build Communities Strong Fund’s Provincial and Territorial stream, pending an agreement under this fund.
Applications will be assessed based on:
- percentage of committed DC rate reduction (minimum 30 to 50 per cent reduction);
- number of homes projected to build as a result of proposed DC relief; and
- the municipality’s financial contribution.
“Municipalities are strongly encouraged to be as ambitious as possible in their DC rate reductions to secure as much funding as possible for their communities,” the release adds.
As of June 1, eligible municipalities can apply for funding through the DCRP. The deadline to apply is June 19. Timelines are intended to coincide with the enhanced HST rebate in order to maximize relief for homebuilders and homebuyers.
Funding through the Canada-Ontario Partnership to Build will also be made available for rural, small and northern municipalities, with more details to come at a later date.
