Home builders in York Region will pay lower fees to help fund new roads, sewers and transit after regional council approved the first-ever cut to development charges in its 55-year history. The new rules, which took effect May 21, 2026, reduce the fees by 2% to 9% for residential projects and 2% to 35% for non-residential projects across the region, including Aurora.
Regional council passed the 2026 Development Charges Bylaw on May 21, marking the first time these charges have gone down since the region was created. The fees are paid by developers to help cover the cost of growth-related infrastructure needed to support new homes, businesses and people.
The reduced rates are expected to help address housing affordability while still providing money for major projects. The bylaw sets aside just over $21.2 billion for infrastructure to support more than 750,000 new residents and 250,000 new housing units expected by 2051. Key projects include expanding the York Durham Sewage System, the North Markham Sewer Expansion, and paying York Region’s share of the Yonge North Subway Extension, along with road work and protective services.
Retail development will see a 2% decrease, while industrial, office and institutional building fees drop by 11%. The change is largely due to provincial laws, such as Bill 17, which allow builders to delay paying development charges until a building is occupied. The new bylaw assumes at least $4 billion in funding from upper levels of government to offset the lost revenue, and further cuts could come once details of the $8.8 billion Canada-Ontario Partnership to Build are finalized.
However, the fee reductions come with a price tag for the region. The new bylaw is expected to bring in $102 million less this year compared to what was budgeted, and the impact on the 10-year capital plan could reach $473 million. York Region Chairman and CEO Eric Jolliffe said the bylaw shows the region’s commitment to tackling housing challenges, but King Township Mayor Steve Pellegrini, who chairs the finance and administration committee, warned the incentives and deferrals have substantial financial impacts. The region says total discounts, deferrals and incentives reflected in the bylaws add up to nearly $1.4 billion in financial pressures that need to be managed through the region’s fiscal strategy.
