The City of Windsor and most municipalities in the County of Essex received a combined $190-million in infrastructure funding after agreeing to reduce development charges for the next three years.
The infrastructure projects are expected to unlock the potential for over 55,000 homes in the region over 10 years.
“Ontario is growing, and we need to ensure our communities have the housing and infrastructure to keep pace,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is why our government continues to deliver programs like the Development Charge Reduction Program, which helps bring the dream of homeownership within reach for more hardworking Ontario families while positioning communities for growth.”
Depending on the municipality and the development charges applicable, this could reduce the cost of a new home by up to nearly $50,000.
The City of Windsor will be reducing development charges for all housing types by 70 per cent between March 30 2026, and March 31, 2029.
In exchange, the municipality will receive $77.6 million to support housing-enabling infrastructure. That infrastructure includes roads and sewers in the Sandwich South lands, and the extension of Lauzon Parkway to the new 401 cloverleaf.
"These are significant capital projects and they are going to take time and they need to be constructed over the 10-year period of time," said Janice Guthrie, City Treasurer.
The County of Essex has agreed to eliminate development charges for 2026 and 2027 and reduce charges by 75 per cent in 2028, and 50 per cent in 2029. The County will receive $51.2 million through the program for housing enabling infrastructure.
"We're anticipating being able to advance a number of roadway infrastructure projects to deal with congestion, and unlock housing in a number of areas of the county," said Essex County CAO Sandra Zwiers. "These funds will help us advance those projects sooner than our funding would have normally allowed."
New home builds in the County of Essex pay two separate development charges due to the two-tier government.
"In a two-tier government as the county is, there is a charge at the local level and a charge at the county," said Zwiers. "We offer separate services that require funding."
The Town of LaSalle will be eliminating development charges for the next three years and will receive $25.4 million through the program.
The Town of Tecumseh, Town of Essex, Municipality of Lakeshore, and the Town of Kingsville will be reducing development charges for the next three years by 50 per cent.
In the Town of Tecumseh, that means new home prices could go down by up to $18,078.
Through the agreement, Tecumseh will receive $6.8 million, Essex will get $8.8 million, Lakeshore $11.8 million, and the Town of Kingsville will receive $8.4 million.
Brent Klundert, President of BK Cornerstone Design Build, believes the reduction in fees will help spur the market and make a big impact in the region.
"Every little bit helps," said Klundert. "Right now we're in a market where there are external factors that are really weighing in on home buyers' decisions; however, with pairing an HST discount that is only available for a certain portion of time, set to expire March 31, pairing that with these development charges, it may spur people to think about the decision to move quicker."
