PETROLIA, Ontario — The governments of Ontario and Canada have announced up to $2.3 million in infrastructure funding for the Town of Petrolia as part of an initiative to reduce housing development costs, encourage residential construction and improve municipal services.
Announced on November 9, 2026, the investment follows Petrolia’s commitment to eliminate development charges on all residential housing types from March 30, 2026, through March 31, 2029.
The funding, provided through the Development Charge Reduction Program (DCRP), is expected to support infrastructure improvements while helping create conditions for up to 781 new homes.
Development Charge Elimination Expected to Lower Housing Costs
Under the three-year initiative, Petrolia will eliminate municipal development charges that would otherwise be applied to new residential construction.
The municipality estimates the measure could reduce construction costs by up to $11,695 per home, potentially improving project affordability for developers and homebuyers.
“Rising housing costs have put the dream of homeownership out of reach for far too many people in Ontario,” said Rob Flack, Minister of Municipal Affairs and Housing. “Through the Development Charge Reduction Program, residents in Petrolia will save thousands of dollars on the cost of a new home, making homeownership more attainable for young professionals, growing families and seniors alike.”
Combined Housing Incentives Could Deliver Savings of $141,695
The Petrolia initiative forms part of a broader federal-provincial housing affordability strategy.
In March 2026, Ontario and Ottawa agreed to a cost-matched infrastructure investment framework worth $8.8 billion over 10 years. Federal contributions will flow through the Build Communities Strong Fund.
Both governments also agreed to provide full Harmonized Sales Tax relief on eligible newly constructed homes between April 1, 2026, and March 31, 2027.
The HST measure could provide savings of up to $130,000 for qualifying homebuyers.
Combined with Petrolia’s development charge elimination, total potential savings could reach $141,695 per eligible new home, depending on applicable program conditions.
Infrastructure Investment to Support Municipal Growth
The proposed $2.3 million allocation will help Petrolia address infrastructure requirements associated with residential expansion.
Planned improvements include upgrades to firefighting equipment, new fire pumper and rescue vehicles, recreational facilities, and equipment for municipal Public Works operations.
Additional projects identified by the municipality include improvements to tennis, pickleball and basketball courts, trails, sports fields, lighting and facilities at the Petrolia YMCA.
“I would like to express my sincere gratitude to our federal and provincial partners for their investment in Petrolia, and to our Council and staff for their continued work in identifying opportunities that support growth, strengthen our infrastructure and improve the quality of life for our residents,” said R. Brad Loosley, Mayor of Petrolia. “This is a significant opportunity for our community. It helps encourage new housing and development while allowing us to continue planning for the infrastructure and services that growth requires. Petrolia expects to receive $2.3 million over 10 years, helping us advance important growth-related infrastructure projects while reducing the financial burden on development.”
Funding Remains Subject to Government Agreements
The funding is conditional on the completion of a Canada-Ontario Build Communities Strong Fund agreement, government due diligence and a municipal transfer payment agreement.
Participating municipalities must contribute at least 10 per cent of eligible project costs.
The DCRP prioritizes municipalities that reduce residential development charges by 30 to 50 per cent or more and maintain those reductions for at least three years.
More than 200 of Ontario’s 444 municipalities currently impose development charges.
Housing Industry Welcomes Petrolia’s Development Charge Relief
Housing industry representatives welcomed the initiative, citing the potential to improve project viability and stimulate residential investment.
“Reducing development charges can significantly improve project viability and unlock greater investment in new housing. Programs like this create better conditions for more homes to move forward, including purpose-built rental housing, giving people more choice in where and how they live. We welcome continued collaboration between governments and municipalities such as Petrolia to reduce barriers, support growth and help increase housing supply across Ontario.” said Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario.
The Ontario Home Builders’ Association and other construction industry organizations also expressed support for reducing upfront development expenses.
For Petrolia, the initiative represents an opportunity to expand housing supply while strengthening municipal infrastructure.
Although the projected 781 homes remain dependent on future development activity, the investment is intended to support long-term residential growth, local construction activity and housing affordability in southwestern Ontario.
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