Earlier today, Peel Region Council voted to reduce development charges by 50% from July 10, 2025 to November 13, 2026 in order to spur housing development and make homes in Caledon, Brampton, and Mississauga more affordable.
The move had commitment of support from the provincial government, though an official funding agreement has not been signed off on as of now. Included in the motion is a stipulation that the program could be cut short if "a satisfactory financial agreement is not reached with the province by October 17, 2025."
Development charges (DCs) are taxes that developers pay to the city in order to help pay for increased infrastructure needs that may be needed as a result of growth, including services like roads, transit, water, and sewer systems. But in recent years, development charges in the region and across the GTA have skyrocketed, placing additional strain on already struggling development pipelines.
As a result, calls have been made by the federal government and numerous development associations to freeze and/or lower the fees. Peel's decision to follow suit is just the most recent in a string of similar moves from nearby municipalities.
In an effort to make development financially feasible for more builders and to lower costs for end users, Vaughan returned their DCs to September 2018 levels in November, Burlington lowered DCs 15% last May, and Mississauga reduced all residential DCs by 50% and by 100% for three-bedroom units in purpose-built rentals.
For Justin Sherwood, Senior Vice President of Communications, Research & Stakeholder Relations at the Building Industry and Land Development Association (BILD), the reform represents an excellent step in the right direction.
"We applaud and welcome the change and encourage other regions across the GTA to look at doing similar actions, [...] and we want to thank the provincial government for their support in this matter." Sherwood tells STOREYS. "It's a really good day today for prospective home buyers who are looking for a new home in the Region of Peel, [...] and the decision comes at a time where the industry is struggling. It's a very positive move."
