Ontario

Aurora Mayor Reviews Impact of New Provincial Housing Funding Plan

By

James Sinclair
March 31, 2026 4:54 pm

Aurora Mayor Tom Mrakas is reviewing a new federal-provincial plan to cut development charges on new homes by up to 50 percent for three years, a move that could significantly impact the town’s infrastructure funding and housing goals.

On March 30, 2026, Prime Minister Mark Carney and Ontario Premier Doug Ford announced a joint investment of $8.8 billion to lower these fees, which developers typically pay to cover the costs of roads, water, and sewage systems for new builds. The funding will be distributed through the Build Communities Strong Fund, with the federal and provincial governments each contributing $4.4 billion over 10 years to help municipalities offset infrastructure costs.

In a statement released on March 30, 2026, Mayor Mrakas indicated the town is carefully reviewing the details. The goal is to determine how the plan can support local housing delivery while protecting the town’s financial stability and the services that residents rely on. Aurora has already made significant progress toward its provincial housing target, with over 4,200 residential units approved since 2023, keeping the town on track toward its commitment of 8,000 new units by 2031.

The partnership also includes a measure to remove the 13 percent sales tax on new homes valued up to $1 million, effective from April 1, 2026, to March 31, 2027. Prime Minister Carney said the combination of these two measures could reduce the total cost of a new home by as much as $200,000.

The Association of Municipalities of Ontario has previously raised concerns regarding similar proposals, noting that when development fees are reduced, the cost of building new infrastructure does not disappear. They have warned that without sustainable alternative funding, these costs could shift from new homeowners to existing residents through property tax increases. Mayor Mrakas has previously echoed these concerns, emphasizing the importance of securing fair, long-term funding solutions to ensure that growth remains sustainable for the existing community.