Peterborough city council has endorsed a plan to cut development charges for new residential construction by 50 per cent for the next three years in an effort to boost housing development and secure provincial funding.
The move follows the Ontario government’s announcement of a new Development Charge Reduction Program, unveiled June 1, which offers municipalities access to infrastructure funding if they reduce development charges by between 30 and 50 per cent.
Under the motion approved by council, Peterborough will reduce all residential development charges, including area-specific charges, by 50 per cent effective June 30, 2026. The reduction will remain in place for three years after the city updates its development charge bylaws to align with provincial program requirements.
City officials will now prepare an application for the provincial program ahead of the June 19 deadline.
The province has earmarked up to $8.8 billion in federal and provincial funding through the DCRP to support housing-enabling infrastructure projects and encourage municipalities to reduce costs for homebuilders.
Council’s decision is intended to improve housing affordability and help accelerate residential construction while positioning Peterborough to receive a share of the available funding.
The program requires any housing project benefiting from the reduced development charges to begin construction by July 31, 2030, and be completed by 2035.
As part of the motion, city staff have been directed to apply the reduced rates to all new residential development types and identify infrastructure projects that would best support future housing growth.
The initiative aligns with Peterborough’s broader housing objectives, including a commitment to help facilitate the construction of thousands of new homes over the coming years.
Should the city’s application be approved, municipal officials will be authorized to enter into agreements with the Province of Ontario to secure funding and advance eligible infrastructure projects.
