Windsor City Council is backing what’s expected to be one of the largest reductions in residential development charges in Ontario in a move to secure money from the federal and provincial governments.
During a special meeting Wednesday, council voted to support, in principle, a recommendation for a 70 per cent reduction in development charges for three years across the city and in the Sandwich South area, retroactive to March 30, 2026. The downtown core would remain 100 per cent exempt.
The reduction would only move forward if Windsor is successful in its application for funding from the provincial and federal governments’ $8.8 billion Development Charge Reduction Program (DCRP), which aims to deliver funding for housing-enabling infrastructure projects.
Eligible projects include roads, water and wastewater, and transit, but municipalities will be required to fund at least 10 per cent of project costs while the program covers the other 90 per cent.
The city has identified five road and sewer projects worth over $122 million, with nearly $50 million in funding being applied for while the total municipal contribution would be nearly $73 million.
Windsor Mayor Drew Dilkens says they want to unlock housing stuck in the pipeline but don’t want to pass on the growth-related costs to the property tax base.
“The projects that were put forward, I think, are sensible projects based on our experience,” he says. “They’re already sort of contained somewhat in the ten-year capital plan anyway, so it’s a rejigging of the capital plan to make sure that we’re still delivering on the projects council approved but prioritizing the ones, if they did with the report today, prioritizing the projects that will actually unlock more housing.”
Dilkens says at 70 per cent, we are still receiving money from developers, and this will be the largest reduction in development charges in the city.
“Anyone who’s building residential development over the next three years will be eligible, if our application is approved, for a 70 per cent reduction in the post-development charges. With the revenue we receive from the developers and the revenue we receive from the federal-provincial government program, we ought to be in a position where the math still makes sense and growth is still paying for growth,” he says.
City administration estimates that 2,933 housing units may be unlocked and proceed with development over the next three years.
Dilkens says they think the application is very aggressive and shows the city is all in on trying to address the housing affordability issue.
“Development charges are the only expense really that we can control on the city side. It’s the last arrow in the quiver that we have. We’re in for a reduction of 70 per cent which will probably be among the highest applications the province of Ontario receives through this program. It’s a sign of the commitment that we have at the city,” he says.
Funding applications are prioritized for municipalities that reduce development charges for all residential types by 30 per cent to 50 per cent or greater and maintain the reductions for at least three years and will be assessed on the size of the municipal contribution along with the level of DC reduction and the number of housing units that will be enabled.
Funding applications will also be made through the Trade Diversification Corridors Fund and the Build Communities Strong Fund.