The City of Vaughan has made a historic move by temporarily reducing development charges (DCs) to zero for shovel-ready residential housing projects. This initiative, led by Mayor Steven Del Duca and city council, marks a first for a municipality of Vaughan's size in the Greater Toronto Area.
Historic Reduction in Development Charges
Just two years ago, Vaughan had some of the highest DC rates in the GTA. Now, for projects that are ready to proceed, the city portion of DCs will be zero. This applies retroactively from February 25, 2026, until October 31, 2027, covering a full construction season to maximize housing starts.
Development charges are one-time fees paid by developers to fund infrastructure like water systems, roads, parks, and ambulances. These costs are typically passed on to new homebuyers, impacting affordability. In two-tier municipalities, both the city and region can levy charges. While the Region of York still imposes DCs, the combined cost for larger apartment units has dropped from over $120,000 to just over $60,000 per unit.
Additional Fee Reductions
In addition to the DC exemption, Vaughan city council has adopted further reductions in development fees. Engineering and planning fees for residential applications are cut by 25%, while fees for purpose-built, non-luxury rental applications are reduced by 100%. These reductions also run until October 31, 2027.
Council staff are developing a detailed policy framework to guide the DC exemption, setting an example for other municipalities.
Impact on Housing Affordability and Supply
The zero-DC policy is expected to make housing more affordable for buyers, increase project starts and completions, and strengthen project viability. More projects will move from approvals to construction, boosting housing supply quickly.
Mayor Del Duca, a father, believes future generations should be able to live in the communities where they grew up. He understands that housing supply and affordability are key, and that development charges play a role.
Dave Wilkes, President and CEO of BILD, applauds the move, stating, "Working collaboratively and proactively to advance much-needed housing is what is required to support growth, especially at a time where economic uncertainty and affordability pressures are top of mind for Ontarians."
This collective push from all levels of government addresses the housing crisis. Leaders like Mayor Del Duca are taking present-day action to safeguard future generations.
