Federal and Provincial Governments Invest $39.9 Million Towards Affordable Housing In Peterborough
/The Federal and Provincial Governments are helping provide more affordable housing in Peterborough, giving the City up to $39.9 million through the Development Charge Reduction Program (DCRP), announced Monday morning.
Screenshot.
The funding is in recognition of its commitment to reduce development charges by 50 per cent for all housing types from March 30 to March 31, 2029.
The funding will help build more homes and community infrastructure in Peterborough while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job, according to Doug Ford, Ontario Premier.
“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,” he said. “Congratulations to outgoing Mayor Jeff Leal, as well as Peterborough council members, for working with us to bring the dream of homeownership within reach for Peterborough families. I look forward to working with incoming Mayor Michael Eamon as we continue to deliver on that mission.”
The reduction in development charges over the three-year period is estimated to reduce the cost of building new homes in Peterborough by up to $34,302 per home. Combined with savings from expanded HST relief on eligible new homes, these initiatives could save families in Peterborough up to $164,302, said Rob Flack, Minister of Municipal Affairs and Housing.
“Across Ontario, there is a need for critical infrastructure and housing of all types to support our fast-growing communities,” he stated. “That is why our government continues to deliver programs like the Development Charge Reduction Program, which helps position communities for future growth.”
In March 2026, the Provincial and Federal Governments agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario, with Canada’s share flowing through the Build Communities Strong Fund (BCSF). They also agreed to provide relief on the full HST on eligible new homes from April 1 to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. This is in addition to cost reductions for builders through the DCRP.
“Our government is committed to making housing more affordable by working with partners to remove barriers to building more homes,” said Emma Harrison, Peterborough-Kawartha MP. “Through the Build Communities Strong Fund and the Development Charge Reduction Program, we are investing alongside Ontario and the City of Peterborough to lower development costs and support the infrastructure needed to build thriving communities. This investment will help make more homes attainable for families in Peterborough, while supporting local growth and creating a stronger future for the community.”
Subject to the signing of a Canada-Ontario BCSF agreement, further due diligence by both governments and the signing of an Ontario-municipal Transfer Payment Agreement, the DCRP will provide the City of Peterborough with up to $39.9 million to support roads and water infrastructure, including:
Construction of a sanitary forcemain along the Otonabee River, a replacement trunk sanitary sewer on South Park Drive, two sanitary pumping stations, a trunk sewer to the city’s wastewater treatment plant and a looped trunk watermain system
Roadway reconstruction and widening of existing four-lane corridors to five lanes, including replacement and increased capacity for storm servicing, wastewater servicing and water servicing.
