Oshawa Mayor Dan Carter is applauding a new federal-provincial program that could cut the cost of building homes in the city. The $8.8 billion Canada-Ontario New Development Charge Reduction Program launched on June 1, 2026, and aims to lower fees that builders pay, with the goal of boosting housing construction.
In a statement, Mayor Carter called the program “a bold and cooperative approach” to tackling the housing crisis. He pointed out that Oshawa has been ahead of the curve for years, keeping development charges at zero for new housing downtown since 2004. The city also waived those fees along the Simcoe Street North corridor between 2010 and 2020.
To tap into the funds, municipalities must slash development charges by 30 to 50 percent for all residential types and lock in those cuts for at least three years. Oshawa’s track record could give it a leg up as it races to meet a tight June 19, 2026, deadline to apply for infrastructure dollars.
The city has roughly 1,600 homes already in the works downtown and another 2,800 that could potentially be built across Oshawa within two years if the right funding comes through. Growing areas like Kedron and Columbus, which are set to house 46,000 people near Highway 407, stand to gain from new roads, water mains, and other projects the program would support.
“Oshawa is ready to put shovels in the ground and will put forward a list of projects to support infrastructure growth and accelerate construction of housing throughout the municipality,” Carter said, noting the program dovetails with the city’s push to meet the provincial target of 23,000 homes by 2031. The cash would flow over 10 years through the federal Build Communities Strong Fund, with the province and Ottawa covering up to 90 percent of project costs. Municipalities must kick in the rest.
