The City of Toronto, the Government of Canada, and the Province of Ontario have announced a landmark multi‑billion‑dollar agreement that will significantly reduce development charges on new housing while advancing one of the city’s most important transit projects: the Waterfront East Transit line. Under the new agreement, the federal and provincial governments will fund a reduction in development charges by up to 50 per cent, directly supporting the infrastructure required to build more homes across the city. Toronto will work with the province to identify growth‑enabling projects that can be jointly funded, allowing development charges to be lowered without compromising on critical infrastructure delivery.
This new deal builds on a series of “bold steps” Toronto has already taken to lower costs and accelerate housing construction. To date, it has invested more than $760 million to reduce development charges and incentivize new housing, including:
- Eliminating development charges for 6,128 purpose‑built rental units
- Providing a 15% property tax reduction for new multi‑residential buildings
- Freezing development charge rates at 2024 levels
- Deferring development charge payments for condo units (pre‑Bill 17)
- Ending the conditional permit policy, allowing developments to secure the DC rate frozen at the time of planning application
- Exempting developments with up to six units—plus a garden or laneway suite—from development charges and other fees
For developers navigating tight proformas and rising construction costs, these measures collectively represent a meaningful shift in project viability.
Waterfront East Transit
The announcement also confirms major federal and provincial funding for the Waterfront East Transit project, complementing the City’s own $1‑billion investment. The new transit line will connect the eastern waterfront to the Port Lands, unlocking a significant future residential district.
“I’m pleased to join with the federal and provincial governments in this partnership to build more housing, transit and support good jobs,” said Mayor Olivia Chow. “The City of Toronto has taken bold steps to cut development charges on new homes, speeding up our development timeline and investing in affordable housing. Further, we have invested in the design of the Waterfront East Transit. Today’s historic announcement takes our work further and will deliver thousands more affordable homes and better transit, benefiting our City for generations.”
The announcement reinforces Toronto’s role as a global economic and cultural hub. Home to more than three million residents, the city continues to rank among the world’s most livable and diverse urban centres. As an Official Host City for the FIFA World Cup 2026 and the fourth‑largest city in North America, Toronto remains a leader in technology, finance, film, music, culture, innovation, and climate action—strengthened by ongoing investment from government, residents, and businesses.
