Ontario Construction News staff
Peel Regional Council has approved what itโs calling a โhistoric shiftโ in how the region funds infrastructure, introducing measures aimed at accelerating housing construction and easing the financial burden on builders.
In a unanimous vote, council endorsed a motion to temporarily slash development charges and defer payment deadlines, while pursuing new partnerships with the province and federal government to fund essential infrastructure.
โThis marks the most significant change in municipal infrastructure funding in decades,โ Regional Chair Nando Iannicca said in a statement following the June 27 vote. โCouncil has stepped forward and now expects the development community to do the same by advancing their housing plans.โ
The motion includes several key measures:
- Development charges on new residential units will be cut by 50 per cent starting July 10, 2025, until Nov. 13, 2026. The reduction will be funded by grants-in-lieu, with Peel applying to the federal governmentโs Canada Housing Infrastructure Fund to help offset costs.
- Builders will also be allowed to defer development charge payments interest-free until the first occupancy permit is issued โ a move designed to improve cash flow and encourage project viability.
The region will collaborate with the provincial government on a proposed โPeel Utility Modelโ to fund infrastructure more sustainably in the long term.
Peel will work with the development industry, including the Building Industry and Land Development Association (BILD), to ensure cost savings benefit future homeowners and renters.
If a financial agreement is not reached with the province by Oct. 17, 2025, the development charge reduction will automatically expire. Council will then re-evaluate whether to extend the measure with a simple majority vote.
The changes come amid a surge in demand for new housing, rising construction costs and economic uncertainty. Peel Region, which includes Mississauga, Brampton and Caledon, has been under increasing pressure to build more homes while maintaining services and infrastructure.
Councillors say the new measures are designed to strike a balance โ encouraging housing starts while maintaining the financial health of the region.
โThis kind of collaboration is what it takes to meet todayโs housing and infrastructure challenges head-on,โ Iannicca said in a statement.