Hamilton to eliminate residential development charges for three years and receive $572M

What’s happening

• The Province and federal government will provide up to $572 million to the City of Hamilton through the Development Charge Reduction Program (DCRP).
• This is tied to Hamilton eliminating development charges on all residential developments from March 30, 2026 to March 31, 2029, pending City Council approval.

Who and when it affects

• Affects residential developers, homebuyers and residents of Hamilton.
• Development charge elimination would run 2026-03-30 through 2029-03-31; HST relief noted in the release runs 2026-04-01 to 2027-03-31.

By the numbers (from the release)

• Up to $572 million available to Hamilton under DCRP.
• City estimates these changes could unlock over 31,000 new homes.
• Development charge removal could cut building costs by up to $100,442 per home; combined with HST relief (up to $130,000) the release says families could save over $230,000 on a new home.
• Municipalities must contribute at least 10% of project costs under the program.

Planned infrastructure projects named in the release

• Widening/reconstructing Barton Street (Fruitland Rd to Fifty Rd) to a five‑lane multi‑modal arterial road
• Reconstructing Lewis Road (Highway 8 to Barton Street) to an urban multi‑modal collector road
• Widening Rymal Road on sections of Hamilton Mountain to a five‑lane arterial
• Widening/reconstructing Garner Road in Ancaster to a five‑lane arterial
• Expanding the Woodward water/wastewater treatment plant
• Upgrading Greenhill Water Pumping Station capacity

Conditions and next steps

• Federal funding requires a Canada–Ontario BCSF bilateral agreement and federal review/approval of projects.
• Receipt of funds depends on Hamilton signing an Ontario municipal Transfer Payment Agreement and meeting program requirements.
• The development charge elimination must be approved and maintained by Hamilton City Council for three years.

Why it matters

• The policy aims to lower upfront costs to build new homes and to invest directly in roads and water infrastructure needed to support growth, which the release says will speed housing construction and support local jobs.