What happened
The governments of Ontario and Canada announced that Essex County and several of its municipalities will receive up to $105.8 million through the Development Charge Reduction Program (DCRP), in exchange for commitments to reduce or eliminate development charges for all housing types over a set period.
According to the release, the funding will support housing-enabling infrastructure such as water and wastewater systems, roads, bridges, transit, fire stations and police detachments, as well as community features such as libraries and recreation centres.
The province estimates that the reduction in development charges over the relief period could lower the cost of building a new home by up to $40,862 per home, depending on the municipality, including reductions at both the upper and lower tiers.
The release also states that in March 2026, Ontario and the federal government agreed to a cost-matched structure providing a combined $8.8 billion over 10 years for infrastructure in Ontario, with Canada's share flowing through the Build Communities Strong Fund (BCSF). The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026, to March 31, 2027, saving homebuyers up to $130,000 per new home. Combined with DCRP savings, the release says families in the region could save up to $170,862 on a new home.
What the official text says
> Today, the governments of Ontario and Canada announced that regional and local municipalities in the County of Essex will receive up to $105.8 million through the Development Charge Reduction Program ( DCRP ) in recognition of their commitment to reduce or eliminate development charges for all housing types from March 30, 2026, to December 31, 2030, depending on the municipality.
Who is affected
- Essex County: eliminating development charges for all housing types in 2026 and 2027, reducing them by 75 per cent in 2028, 50 per cent in 2029 and 25 per cent in 2030, for up to $51.2 million.
- Town of LaSalle: eliminating development charges for all housing types from March 30, 2026, to March 31, 2029, including in the Reaume Sanitary Service Area, for up to $25.4 million.
- Town of Essex: 50 per cent reduction over the same period, up to $8.8 million.
- Municipality of Lakeshore: 50 per cent reduction, up to $11.8 million.
- Town of Kingsville: 50 per cent reduction, up to $8.4 million.
- Town of Tecumseh: 50 per cent reduction, up to $6.8 million.
- Windsor: 70 per cent reduction, up to $77.6 million.
The release says construction cost savings over the relief period, together with the infrastructure investment, would unlock 36,372 new homes in Essex County.
When it starts
Start dates vary by municipality. The county-level relief begins in 2026, while LaSalle, Essex, Lakeshore, Kingsville, Tecumseh and Windsor run from March 30, 2026 to March 31, 2029. The overall relief period extends to December 31, 2030.
Federal funding is subject to the signing of a Canada-Ontario BCSF bilateral agreement and federal review and approval of project funding. Receipt of funding and confirmation of approved projects are subject to each municipality entering into a Transfer Payment Agreement with Ontario and complying with program requirements. Municipalities must contribute at least 10 per cent of project costs.
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