Verified October 23, 2026. Based on the joint Canada and Ontario announcement of October 23, 2026, the Province of Ontario’s Development Charge Reduction Program page, the federal and Ontario program launch of June 1, 2026, and local reporting from Windsor News Today and CTV Windsor. The Ontario Newsroom page for this release did not load in our tools, so figures were checked against the release as distributed by Canada’s Department of Housing, Infrastructure and Communities on Canada Newswire.
The short answer: The federal and Ontario governments will provide up to $105.8 million to Essex County and four of its local municipalities through the Development Charge Reduction Program. In return, each will reduce or eliminate development charges on all housing types, for periods that run from March 30, 2026 to as late as December 31, 2030. The release estimates that the cuts will lower the cost of a new home by up to $40,862, depending on the municipality, and says the work could help enable an estimated 36,372 new homes. These are ceilings and projections. The money depends on agreements and approvals that are still to be completed.
At a glance
Development charges are fees a municipality collects from builders for each new home, to pay for roads, water, sewers and other growth-related infrastructure. Builders usually build them into the price. The program pays part of a municipality’s infrastructure bill if it cuts those fees. Our explainer on which GTA cities have signed on covers how the program works across the region.
Funding and cuts by municipality
| Municipality | Funding, up to | Development charge cut | Period |
|---|---|---|---|
| County of Essex | $51.2 million | Eliminated in 2026 and 2027, then 75% in 2028, 50% in 2029 and 25% in 2030 | Mar 30, 2026 to Dec 31, 2030 |
| Town of LaSalle | $25.4 million | Eliminated, including the Reaume Sanitary Service Area | Mar 30, 2026 to Mar 31, 2029 |
| Municipality of Lakeshore | $11.8 million | 50% reduction | Mar 30, 2026 to Mar 31, 2029 |
| Town of Essex | $8.8 million | 50% reduction | Mar 30, 2026 to Mar 31, 2029 |
| Town of Kingsville | $8.4 million | 50% reduction | Mar 30, 2026 to Mar 31, 2029 |
The five amounts in the release add up to $105.6 million, while the release gives a total of $105.8 million. The release does not explain the $0.2 million difference, so we show the individual amounts as printed and the total as printed.
Essex County: a phased return of charges
The county gets the largest award, up to $51.2 million, and its approach is different from the towns. The county eliminates its development charges for 2026 and 2027, then brings them back in steps: a 75 per cent reduction in 2028, 50 per cent in 2029 and 25 per cent in 2030. That means the county share of the charge on a new home rises each year until the program period ends on December 31, 2030.
The release gives a single “up to $40,862” figure for the savings and says it depends on the municipality. It does not say which municipality that maximum applies to.
LaSalle, Lakeshore, Essex and Kingsville
LaSalle: up to $25.4 million
LaSalle commits to eliminating its development charges from March 30, 2026 to March 31, 2029, including in the Reaume Sanitary Service Area. It is the only one of the four towns to go to zero, and the second largest award in the group.
Lakeshore: up to $11.8 million
Lakeshore committed to a 50 per cent cut. According to Windsor News Today, staff had recommended a 30 per cent cut, and council raised it to 50 per cent to improve the municipality’s chances of approval. Lakeshore’s application centred on the Stoney Point sewage treatment plant, which would serve its eastern communities, and the municipality had asked for $52.9 million toward that project. The award in this announcement is $11.8 million, so the release does not show how the treatment plant will be paid for or whether it is part of the funded work.
Town of Essex: up to $8.8 million
The Town of Essex commits to a 50 per cent cut. In June, CTV Windsor reported that Essex could net about $12 million under the program as council reviewed the plan. The announced amount is $8.8 million, which is lower. The release does not list the Town of Essex project.
Kingsville: up to $8.4 million
Kingsville council voted in June to cut development charges by 50 per cent for three years, conditional on funding. Windsor News Today reported that the town’s main project was an expansion of the wastewater treatment plant and sewage transmission systems in Ruthven and Kingsville, estimated at $65 million, and that the plant operates at 90 per cent capacity. The announced $8.4 million covers only part of that figure. The release does not say how the rest will be funded.
How the HST relief stacks on top
The release pairs the development charge cuts with separate HST relief on eligible new homes, available from April 1, 2026 to March 31, 2027 and worth up to $130,000. Added together, the release says savings could reach up to $170,862 per home. The two programs have different rules and end dates, and neither one guarantees that a builder will lower the price. For how HST relief shows up in a builder’s price, read our guide on whether a new-build price includes the HST rebate, and for the original announcement, Ontario Expands HST Rebate.
Where Windsor and Tecumseh fit
The release lists the City of Windsor and the Town of Tecumseh in its quick facts. Windsor gets up to $77.6 million for a 70 per cent cut and Tecumseh gets up to $6.8 million for a 50 per cent cut, both from March 30, 2026 to March 31, 2029. They were announced separately the same day, and the $105.8 million total above does not include them. We cover them in a separate article: Windsor and Tecumseh get up to $84.4 million to cut development charges. Adding the two announcements together gives about $190 million across the Windsor-Essex area, using the individual amounts as printed.
Conditions and open questions
- Agreements still needed: the funding depends on a Canada-Ontario Build Communities Strong Fund agreement, further due diligence, and a transfer payment agreement between each municipality and Ontario. Federal project funding also requires federal review and approval.
- Municipal share: municipalities pay at least 10 per cent of project costs, and the governments fund up to 90 per cent.
- The required cut: the program gives priority to municipalities that cut residential development charges by 30 to 50 per cent or more and keep the cuts for at least three years.
- Eligible work: water and wastewater systems, roads, bridges, transit, fire stations, police detachments, libraries and recreation centres, according to the release. Design, engineering, legal, permitting and insurance costs are not funded.
- Source of funds: the program is part of the Canada-Ontario Partnership to Build, up to $8.8 billion over 10 years. More than 200 of Ontario’s 444 municipalities charge development charges.
The release quotes Jennifer McKelvie, Parliamentary Secretary to the federal Minister of Housing and Infrastructure: “Building more homes requires strong partnerships and investments that make it easier and more affordable to build.” It also lists remarks from Ontario’s Minister of Municipal Affairs and Housing, Rob Flack, local MPPs, the Essex County Warden, local mayors and several housing industry groups.
What buyers and builders can do
- If you are buying a new home: ask the builder in writing whether the price reflects the reduced development charge, and how the charge is set in your agreement. Ask which HST relief is built into the price.
- If you are a builder or land owner: check the by-law of your municipality. The county’s phase-in means the amount you pay changes each year until 2030, and the town cuts end in March 2029.
- If you own a home: the release does not discuss property tax effects. Ask your municipality how it plans to cover the revenue it gives up.
Development charges apply to new construction, so this does not change what a resale home costs. If you are comparing new-build prices in Ontario, our team can walk through the numbers. Start your home search, or if you own and want to know what your home is worth, request a free home evaluation.
FAQ
How much is Essex County getting in total?
Up to $105.8 million for the County of Essex, LaSalle, Lakeshore, the Town of Essex and Kingsville. The county itself gets up to $51.2 million. Windsor and Tecumseh were announced separately.
Which municipality is eliminating development charges?
The County of Essex eliminates its charges in 2026 and 2027 and phases them back in through 2030. LaSalle eliminates its charges from March 30, 2026 to March 31, 2029. Lakeshore, the Town of Essex and Kingsville each cut theirs by 50 per cent over the same period.
Will a new home cost $170,862 less?
No. That is the largest possible combined saving, adding up to $40,862 in development charge savings to up to $130,000 of HST relief. The release describes savings as potential, and the HST relief has its own eligibility rules.
Has the money been paid?
No. The amounts are up to figures. Funding depends on a Canada-Ontario agreement, due diligence, federal approval and a transfer payment agreement between each municipality and Ontario.
Does this affect resale home prices?
Not directly. Development charges are paid on new construction. Resale prices depend on the local market.
Sources
- Ontario Newsroom, Ontario and Canada making homes more affordable in Essex County, October 23, 2026 (the release; the page did not load in our tools, so its text was checked against the wire copy below)
- Housing, Infrastructure and Communities Canada via Canada Newswire, Canada and Ontario Making Homes More Affordable in Essex County (amounts, cuts, periods, conditions, quick facts, 36,372 homes, quote)
- Windsor News Today, Kingsville, Lakeshore agree to potential cuts in development charges (June 10, 2026; council votes, treatment plant projects)
- CTV News Windsor, Bondy says Essex could net $12M under development charge reduction program as council reviews plan (June 15, 2026; headline only) and Funding aims to make homes more affordable in Windsor and Tecumseh
- Province of Ontario, Development Charge Reduction Program (eligibility, 30 to 50 per cent cut, cost sharing, ineligible costs)
- Housing, Infrastructure and Communities Canada, Canada and Ontario open applications for new Development Charge Reduction Program (June 1, 2026; $8.8 billion; June 19 deadline)
Featured image: general photo of new homes under construction from the Local Toronto media library. It does not show a specific site in Essex County.
This article reports a government announcement and is general information, not legal, tax or financial advice. Figures marked “up to” are maximums.
Local Toronto, HomeLife Landmark Realty Inc., Brokerage.