Hamilton and Vaughan will cut residential development charges in exchange for up to $1.27 billion in infrastructure funding under agreements announced Wednesday by federal and Ontario governments.

Hamilton is eligible for up to $572 million after committing to eliminate residential development charges from March 30, 2026, to March 31, 2029. Hamilton estimates this could cut construction costs by as much as $100,442 per home and, with new infrastructure, unlock more than 31,000 units.

The funding could support expansions of the Woodward water and wastewater treatment plant and Greenhill Water Pumping Station, along with upgrades to Barton Street, Lewis Road, Rymal Road and Garner Road.

Nearby, a proposed 812-unit redevelopment at 1809-1843 Rymal Rd. E. could benefit. The site is on the section of Rymal Road slated for widening, while its developer could advance the project with reduced development charges. The project would not receive infrastructure funding.

Vaughan is eligible for up to $697.2 million after reducing residential development charges by 50% over the same three-year period. It is also offering a temporary full exemption for qualifying projects that reach prescribed foundation milestones by Oct. 31, 2027.

Projects at the Vaughan Metropolitan Centre could benefit from lower charges and improved infrastructure. Thousands of approved units there have yet to begin construction, while planned extensions of Bass Pro Mills Drive and Colossus Drive are intended to support growth around the emerging downtown.

The two municipal allocations total $1.269 billion and remain subject to government agreements, due diligence and project approval. Other Ontario municipalities may also participate in the 10-year Development Charge Reduction Program, meaning the Hamilton-Vaughan figure is not a provincewide total.

Pictured: Vaughan Metropolitan Centre, where infrastructure funding including planned extensions of Bass Pro Mills Dr. and Colossus Dr. could support further residential construction.

Credit: Dillan Payne/Wikimedia Commons/CC BY-SA 4.0