Mississauga to get up to $401.4M for infrastructure as development charges are cut

What’s happening

• Ontario and the federal government will provide Mississauga up to $401.4 million through the Development Charge Reduction Program (DCRP).
• In return, Mississauga will reduce residential development charges by 50% from January 29, 2025 to March 31, 2029, and eliminate development charges on rental units with one-bedroom plus den, two- and three-bedroom units until March 31, 2029.

Key numbers

• Up to $401.4 million in DCRP funding for Mississauga.
• Estimated reduction in builder costs of up to $36,140 per new home from the DC cut.
• Paired HST relief (April 1, 2026–March 31, 2027) could add up to $130,000 in savings; combined savings cited up to $166,140 per home.
• City estimates these measures plus infrastructure investment could unlock 90,000 new homes.

Planned project types highlighted

• New zero-emission transit maintenance and storage facility in northwest Mississauga (bus storage, maintenance garage, related infrastructure).
• Integrated downtown transit infrastructure: Transit Mobility Hub, transitway connections, bus platforms, pedestrian and cycling facilities, utility relocations, and supporting infrastructure for retail, office and housing.
• DCRP funding also supports water/wastewater, roads, bridges, fire and police facilities, libraries and recreation centres.

Conditions and implementation

• Federal funding is through the Build Communities Strong Fund and is subject to a Canada–Ontario bilateral agreement and federal review/approval.
• Mississauga must sign an Ontario–municipal Transfer Payment Agreement and meet program requirements.
• Municipalities must contribute at least 10% of project costs.
• DCRP funds are prioritized for municipalities that reduce development charges by 30–50% or more and maintain reductions for at least three years.

Why it matters

• The package links lower upfront costs for homebuilders and renters to targeted infrastructure investment intended to speed construction and expand housing supply in Mississauga.