Peterborough to get up to $39.9M for halving development charges, but deal isn’t final

The City of Peterborough will receive up to $39.9 million from Ontario and Ottawa in exchange for cutting development charges by 50 per cent on all housing types, the two governments announced Monday.

The reduction runs from March 30, 2026 to March 31, 2029. The province estimates it will lower the cost of building a new home in the city by up to $34,302. Combined with the temporary HST relief on eligible new homes, it says families could save up to $164,302.

The City estimates the savings and new infrastructure could unlock 9,276 homes. The money would go to roads and water systems, including a sanitary forcemain along the Otonabee River, a replacement trunk sewer on South Park Drive, two sanitary pumping stations, a looped trunk watermain and the widening of existing four-lane corridors to five lanes.

The funding is not yet final. It depends on a Canada-Ontario agreement under the Build Communities Strong Fund, further review by both governments and a transfer payment agreement between Ontario and the city. Municipalities must also pay at least 10 per cent of project costs.

Development charges are fees municipalities collect from builders to pay for growth-related infrastructure, so a cut in those fees shifts part of that cost elsewhere. The announcement does not say how Peterborough will cover the rest of the revenue it gives up.

Source: Office of the Premier of Ontario.

File photo: George Street North in downtown Peterborough. Photo by Ontario Ministry of Municipal Affairs and Housing, Wikimedia Commons, CC BY 2.0.