The governments of Ontario and Canada have announced up to $39.9 million in infrastructure funding for Peterborough, supporting the city’s commitment to reduce residential development charges by 50 per cent for three years. The initiative is expected to help unlock more than 9,200 new homes while reducing construction costs and improving housing affordability.
Peterborough to Cut Development Charges by 50 Per Cent
PETERBOROUGH, Ontario, November 9, 2026 — The funding, delivered through the Development Charge Reduction Program (DCRP), recognizes Peterborough’s commitment to halve development charges for all housing types between March 30, 2026, and March 31, 2029.
The reduction is projected to lower construction costs by up to $34,302 per home. Combined with expanded Harmonized Sales Tax (HST) relief on eligible new homes, potential savings could reach $164,302 for qualifying homebuyers.
“Today’s investment is great news for Peterborough residents, supporting the construction of thousands of homes and saving families more than $34,000 off the cost of a new home,” said Premier Doug Ford. “Congratulations to outgoing Mayor Jeff Leal, as well as Peterborough council members, for working with us to bring the dream of homeownership within reach for Peterborough families. I look forward to working with incoming Mayor Michael Eamon as we continue to deliver on that mission.”
Infrastructure Investment to Support 9,276 New Homes
Peterborough estimates that reduced development charges and infrastructure improvements could unlock 9,276 homes, expanding housing options for buyers and renters.
Water, Wastewater and Road Improvements
The proposed infrastructure investments include construction of a sanitary forcemain along the Otonabee River, replacement of a trunk sanitary sewer on South Park Drive, two sanitary pumping stations and upgrades connecting to the city’s wastewater treatment plant.
Funding would also support a looped trunk watermain system and roadway reconstruction, including widening selected four-lane corridors to five lanes and increasing stormwater, wastewater and water servicing capacity.
“This partnership with the provincial and federal governments is an important step in preparing Peterborough for continued growth and creating more housing options for residents,” said Jeff Leal, Mayor of Peterborough. “It’s a significant investment in Peterborough’s future with the potential to support the construction of more than 9,200 new homes in our community. This funding will help advance significant infrastructure projects across the city while the development charge reduction will help lower the cost of building new homes. As our community grows in population, the investment will help ensure that our roads and water and wastewater systems have the capacity to grow with it.”
Federal-Provincial Partnership Targets Housing Affordability
The investment forms part of a broader agreement reached in March 2026, under which Ontario and Ottawa committed to a cost-matched $8.8-billion infrastructure program over 10 years.
Federal contributions will flow through the Build Communities Strong Fund, subject to required agreements and approvals.
The governments also agreed to provide full HST relief on eligible new homes between April 1, 2026, and March 31, 2027, potentially saving qualifying purchasers up to $130,000.
“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. “That is why our government continues to deliver programs like the Development Charge Reduction Program, which helps position communities for future growth.”
Housing Industry Welcomes Development Charge Relief
Industry organizations have welcomed the program as a measure to improve project feasibility and encourage residential construction.
Scott Andison, CEO of the Ontario Home Builders’ Association, said reducing development charges can help builders deliver homes at prices more households can afford.
The program prioritizes municipalities that reduce residential development charges by at least 30 to 50 per cent and maintain those reductions for three years.
Municipalities must contribute a minimum of 10 per cent of eligible project costs.
Funding Remains Subject to Final Agreements
Peterborough’s allocation remains conditional on a signed Canada-Ontario funding agreement, government due diligence and a municipal transfer payment agreement.
Once approved, the investment is intended to strengthen essential infrastructure, support construction employment and improve long-term housing supply.
For Peterborough, the initiative represents a substantial opportunity to accommodate population growth while addressing infrastructure constraints and rising residential development costs.
Discover more from Wire Service Canada
Subscribe to get the latest posts sent to your email.