VAUGHAN, Ont. — August 26, 2026 — The Ontario and federal governments are committing up to $697.2 million to the City of Vaughan for housing-enabling infrastructure as the municipality moves to sharply reduce development charges in an effort to lower construction costs and accelerate residential development.
The funding, delivered through 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 projects that reach specified construction milestones can have development charges eliminated entirely between February 25, 2026, and October 31, 2027.
Officials say the combination of lower development charges, tax relief and infrastructure investment could unlock more than 120,000 new housing units across Vaughan.
Development Charge Cuts Could Reduce New-Home Costs
The province estimates Vaughan’s development charge changes could reduce the cost of building a new home by as much as $98,056. When combined with expanded HST relief worth up to $130,000 on eligible new homes, governments say total potential savings could approach $230,000.
“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,” said Premier Doug Ford. “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 funding comes amid broader efforts by Ontario and Ottawa to increase housing supply while supporting construction activity and employment. In March 2026, the two governments agreed to a cost-matched structure providing a combined $8.8 billion over 10 years for infrastructure investments in Ontario.
More Than 120,000 Housing Units Could Be Unlocked
Federal funding is expected to flow through the Build Communities Strong Fund. Ontario and Canada have also agreed to provide relief on the full HST for eligible new homes between April 1, 2026, and March 31, 2027.
“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,” said the Honourable Maninder Sidhu, Minister of International Trade and Member of Parliament for Brampton East. “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.”
Vaughan estimates that savings generated during the development charge reduction period, combined with infrastructure investments, could help unlock more than 120,000 housing units and provide greater housing choice for buyers and renters.
Vaughan Infrastructure Projects Target Roads, Water and Emergency Services
The proposed $697.2-million investment would support infrastructure needed to accommodate Vaughan’s continued residential growth.
Projects include water, wastewater and stormwater improvements, such as a new watermain on Keele Street, reconstruction and expansion of the Block 22 watermain and improvements to Black Creek.
Transportation investments include widening Huntington and Kirby roads to four lanes, extending Bass Pro Mills Drive between Highway 400 and Weston Road, improvements along Teston Road and construction of a mid-block crossing on Colossus Drive.
Funding is also expected to support replacement of the Canadian Pacific Kansas City Rail bridge to accommodate the widening of Highway 7 to eight lanes, as well as a new double-bay fire station at Rutherford Road and Dufferin Street.
“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,” said Steven Del Duca, Mayor, City of Vaughan. “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 homeownership more attainable for young families, while ensuring Vaughan remains a place where residents and families can live, grow and thrive for generations to come.”
Funding Remains Subject to Agreements and Approvals
The development charge reductions are already in effect, but the infrastructure funding remains subject to several conditions, including the signing of a Canada-Ontario Build Communities Strong Fund agreement, government due diligence and an Ontario-municipal Transfer Payment Agreement.
Municipalities participating in the DCRP must contribute at least 10 per cent of project costs. The program prioritizes municipalities that reduce residential development charges by at least 30 to 50 per cent and maintain those reductions for at least three years.
“Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities,” said Rob Flack, Minister of Municipal Affairs and Housing. “Our government is tremendously appreciative of partners like Vaughan, who took early action to reduce development charges and kickstart the local housing sector. Together, we will continue building on this momentum.”
The Vaughan commitment represents part of the broader Canada-Ontario Partnership to Build, which is intended to pair lower development costs with long-term investment in roads, water systems, bridges and other infrastructure required to support new housing.