Major Housing & Infrastructure Updates: Ontario–Canada DC Reduction, New Deadlines, and Industry Trends

Toronto, ON – June 6, 2026

We are writing to provide a concise summary of the latest developments impacting the construction sector, including major government initiatives, market trends, and how GTA Strategies is positioned to support your projects and municipal engagement.

Ontario & Canada Development Charge Reduction Program (DCRP)

• Applications Open Now: Municipalities can apply for the new $8.8 billion DCRP, which funds housing-enabling infrastructure for those reducing development charges by 30–50% for at least three years.
• Deadline: Applications must be submitted by June 19, 2026.
• Benefits: The program aims to lower building costs, accelerate housing starts, and make homes more affordable by combining DC reductions with HST relief (up to $130,000 savings per home).
• Eligibility: Over 200 Ontario municipalities currently levy development charges and are eligible to apply. Municipalities must contribute at least 10% of project costs.

Converting Unsold Condos to Rental and Social Housing

• With condo sales at historic lows (e.g., only 246 units sold in the GTHA Q1 2026 vs. a 10-year average of 4,046), there is a growing call for governments to acquire unsold units and convert them into long-term rental or social housing. Build Canada Homes (BCH) is well-positioned to facilitate these conversions, working with municipalities and non-profits to deliver affordable, community-focused housing.

Regional Housing News & Housing Starts

Ottawa: Over 1,100 new rental units are breaking ground through BCH partnerships, leveraging public land and funding.

B.C.: Rental prices are down, rental construction is up, and vacancy rates have improved due to sustained provincial action.

Manitoba: $47M in federal funding will deliver 133 new rental homes across the province.

Edmonton: New programs are unlocking church lands for affordable housing.

Winnipeg: Innovative cost-recovery systems are being proposed to break infrastructure bottlenecks and accelerate infill housing.

Investment in Housing Construction Declining Despite Incentives

Statistics Canada reports a continued decline in residential construction investment, with March 2026 seeing a 2.2% drop from the previous month and a 2.9% year-over-year decrease.

CMHC Outlook: New home starts are projected to fall from 259,000 in 2025 to 216,000 by 2028, despite significant public incentives. The condo market is particularly weak, with unsold inventory rising.

Canada–Quebec Infrastructure Program

Nearly $10 billion will be invested in Quebec over 10 years through the Build Communities Strong Fund and Canada Public Transit Fund, supporting housing, health care, and transit. Recent projects include the Maison Gabrielle supportive housing initiative in Montreal.

CMHC New Initiatives & Analysis

Development Charges: CMHC confirms that reducing development charges can boost project viability (e.g., a 10-14% increase in viable projects in Toronto and Burnaby if DCs are nearly eliminated), but warns this alone will not solve affordability. Broader regulatory and financial reforms are needed.

Housing Accelerator Fund: CMHC is monitoring municipal progress on housing action plans, with funding at risk if commitments are not met or reversed.

Government Initiatives to Assist Industry

Build Canada Homes (BCH): Launched in September 2025, BCH is accelerating affordable housing delivery, especially on public lands, and supporting mixed-income, non-market housing.

Expanded HST Relief: Temporary HST rebates on new homes up to $1.5 million.

Regulatory Reform: Ongoing engagement to streamline approvals and reduce red tape for major projects.

How GTA Strategies Can Help

GTA Strategies is ready to assist construction industry stakeholders with:

1. Navigating DCRP and BCH Applications: End-to-end support for funding applications, compliance, and maximizing eligibility.
2. CMHC and Municipal Engagement: Guidance on leveraging CMHC programs, responding to regulatory changes, and addressing municipal challenges.
3. Project Feasibility & Advocacy: Strategic advice on project viability, DC reduction negotiations, and advocacy for regulatory reform.
4. Condo Conversion & Affordable Housing Delivery: Expertise in structuring partnerships for converting unsold condos to rental or social housing, and aligning with BCH and municipal priorities.