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Barrie to receive up to $129M as federal, Ontario governments reward development-charge cuts
Ottawa and Ontario announced Barrie will get up to $129 million through the Development Charge Reduction Program after committing to halve residential development charges for three years; combined savings with HST relief could reach $192,223 per family.
Why it matters
The Governments of Canada and Ontario announced today (September 28) that the City of Barrie will receive up to $129 million through the Development Charge Reduction Program (DCRP), in recognition of its commitment to cut development charges on residential developments by 50 per cent from March 30, 2026 to March 31, 2029. The funding goes toward housing-enabling infrastructure.
Full report
The three-year reduction is estimated to lower the cost of building a new home in Barrie by up to $62,223 per home. Combined with expanded HST relief on eligible new homes (April 1, 2026 to March 31, 2027, up to $130,000 off), families in Barrie could save up to $192,223. The city estimates the savings and infrastructure investment will unlock 23,364 new homes.
The funds will upgrade Barrie's wastewater treatment facility: a new digester, conversion of the biological system, replacement of site electrical infrastructure, and a new advanced nutrient-removal treatment train. Receipt of funding is subject to a Canada-Ontario Build Communities Strong Fund (BCSF) agreement and an Ontario-municipal Transfer Payment Agreement; municipalities must contribute at least 10 per cent of project costs.
Background: in March 2026, Canada and Ontario agreed to a cost-matched $8.8 billion over 10 years for Ontario infrastructure, with Canada's share flowing through the BCSF. The DCRP prioritizes municipalities that reduce residential development charges by 30 to 50 per cent or more and hold the cuts for at least three years. More than 200 of Ontario's 444 municipalities currently levy development charges.
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