MISSISSAUGA, Ont. — The governments of Ontario and Canada are committing up to $401.4 million to Mississauga for housing-enabling infrastructure, recognizing the city’s move to sharply reduce development charges and lower the cost of building new homes.
Under the Development Charge Reduction Program (DCRP), Mississauga has committed to reducing development charges by 50 per cent for residential developments from January 29, 2025, through March 31, 2029. The city is also eliminating development charges on rental units with one-bedroom plus den, two or three bedrooms until March 31, 2029.
The governments said the combination of lower fees and infrastructure investment is intended to improve the economics of residential construction while supporting Mississauga’s continued growth.
Development Charge Cuts Could Save Up to $36,140 Per Home
The province estimates Mississauga’s development charge reductions could lower the cost of building a new home by as much as $36,140. Combined with expanded HST relief of up to $130,000 on eligible new homes, total potential savings could reach $166,140.
“In the face of President Trump’s latest tariffs, we’re working with all levels of government to lower costs for families, keep workers on the job and get shovels in the ground faster on new homes,” said Premier Doug Ford. “Mayor Parrish and Mississauga council were early leaders in lowering development charges and with today’s announcement of new provincial and federal funding for housing-enabling infrastructure, we’re continuing our progress to make homes more affordable for families in Mississauga and across Ontario.”
Mississauga estimates the combination of development charge reductions and infrastructure investments could help unlock 90,000 new homes.
“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 alongside our federal partners, which helps provide cities like Mississauga with the funding they need to ensure their city remains a desirable place to live, work and raise a family. Congratulations to Mayor Parrish and the Mississauga City Council for working with us to bring the dream of homeownership within reach for more Mississauga families.”
Transit Infrastructure Among Projects Targeted for Funding
The funding remains subject to several conditions, including the signing of a Canada-Ontario Build Communities Strong Fund agreement, further government due diligence and an Ontario-municipal Transfer Payment Agreement.
Zero-Emission Transit Facility Planned
Among the projects identified for support is a new zero-emission transit maintenance and storage facility in northwest Mississauga. Plans include bus storage, a maintenance garage and related infrastructure.
Funding would also support integrated transit infrastructure in downtown Mississauga, including the Transit Mobility Hub, transitway connections, bus platforms, pedestrian and cycling facilities and utility relocations. The infrastructure is also intended to accommodate future retail, office and residential development.
“This is great news for the people of Mississauga — especially for those looking to buy a home, for those looking for a reasonably priced apartment and for workers in the construction sector,” said Carolyn Parrish, Mayor, City of Mississauga. “This significant funding from our provincial and federal partners will facilitate our investments in local transit and in critically needed infrastructure. We have led on cutting development charges. We are proud of that leadership.”
Canada-Ontario Partnership Targets Housing Supply
The investment builds on a March 2026 agreement between Ontario and the federal government establishing a cost-matched structure for a combined $8.8 billion in infrastructure investments over 10 years.
“Together, we’re building Ontario and Canada strong,” said Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure and Member of Parliament for Ajax. “By partnering with Ontario, the federal government is helping speed up housing construction by lowering up-front costs and investing in housing-enabling infrastructure projects — building strong, resilient communities that boost housing supply and drive economic opportunities.”
Funding Tied to Municipal Fee Reductions
Under the DCRP, funding is prioritized for municipalities that reduce development charges across residential housing types by between 30 and 50 per cent or more and maintain those reductions for at least three years.
Municipalities receiving support must contribute at least 10 per cent of project costs. Eligible infrastructure can include water and wastewater systems, roads, bridges, transit facilities, fire stations, police detachments, libraries and recreation centres.
Of Ontario’s 444 municipalities, more than 200 currently levy development charges.
For Mississauga, the funding package represents a significant public-sector investment aimed at addressing two interconnected challenges: lowering the upfront cost of new housing construction and expanding the infrastructure required to accommodate long-term population and housing growth.