Peterborough is in line for nearly $40 million in federal and provincial funding aimed at supporting housing construction, upgrading infrastructure and reducing the cost of building new homes.
The governments of Ontario and Canada announced Monday that the City of Peterborough is eligible to receive up to $39.9 million through the Development Charge Reduction Program.
The investment recognizes the city’s commitment to reducing development charges by 50 per cent for all housing types between March 30, 2026, and March 31, 2029.
Officials estimate the combination of lower development charges and infrastructure improvements could help unlock construction of 9,276 new homes in Peterborough.
Under the program, reducing development charges is expected to lower the cost of building a new home in Peterborough by up to $34,302.
When combined with expanded HST relief on eligible new homes, the governments say potential savings could reach $164,302.
Premier Doug Ford says the investment will help make homeownership more attainable.
“Today’s investment is great news for Peterborough residents, supporting the construction of thousands of homes and saving families more than $34,000 off the cost of a new home,” said Ford.
He also congratulated outgoing Mayor Jeff Leal and city council for their work on the initiative, while expressing his intention to work with incoming Mayor Michael Eamon.
The proposed $39.9-million investment would help pay for infrastructure needed to accommodate additional housing and population growth.
Projects identified for funding include:
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Construction of a sanitary forcemain along the Otonabee River.
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Replacement of a trunk sanitary sewer on South Park Drive.
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Construction of two sanitary pumping stations.
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A trunk sewer connecting to the city’s wastewater treatment plant.
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Development of a looped trunk watermain system.
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Road reconstruction and widening of existing four-lane corridors to five lanes, along with upgrades to stormwater, wastewater and water servicing.
Mayor Jeff Leal says the funding represents an important step in preparing the city for future growth.
“It’s a significant investment in Peterborough’s future with the potential to support the construction of more than 9,200 new homes in our community,” said Leal.
He added that the improvements would help ensure Peterborough’s roads and water systems can accommodate an expanding population.
The funding is part of a broader agreement between Ottawa and Queen’s Park to invest a combined $8.8 billion over 10 years in Ontario infrastructure.
Peterborough MP Emma Harrison says the partnership is intended to reduce barriers to residential development while supporting local economic growth.
“This investment will help make more homes attainable for families in Peterborough, while supporting local growth and creating a stronger future for the community,” said Harrison.
The governments also agreed to provide relief on the full HST for eligible new homes between April 1, 2026, and March 31, 2027, potentially saving qualifying buyers up to $130,000.
While the investment has been announced, the full amount is not yet guaranteed.
The funding remains subject to a signed Canada-Ontario Build Communities Strong Fund agreement, additional government due diligence and a transfer payment agreement with the municipality.
Officials say the Development Charge Reduction Program is designed to encourage municipalities to lower residential development charges while investing in infrastructure that supports new housing.
