Windsor-Essex municipalities are urgently evaluating their eligibility for millions of dollars in federal infrastructure funding aimed at supporting new housing, contingent on reducing costs for developers by up to 50 percent. The Canada-Ontario Development Charge Reduction Program, announced on June 1, allocates $8.8 billion to cover up to 90 percent of new infrastructure costs—such as roads, water and wastewater systems, and transit—provided municipalities cut development fees by up to 50 percent for three years. Municipalities must also contribute 10 percent of project costs, with a completion deadline of October 31, 2035.
Local Responses and Applications
Lakeshore, Kingsville, and LaSalle have already moved to apply for grants, while other municipalities are convening special meetings or fast-tracking agenda items before the June 19 application deadline. Windsor Mayor Drew Dilkens confirmed via email that the city is preparing a report for a special meeting ahead of the deadline. Amherstburg has placed the issue on its June 15 council agenda, and the Town of Essex is assessing its eligibility.
Lakeshore voted on Tuesday to apply for a wastewater infrastructure grant of nearly $53 million, agreeing to cut development fees by 50 percent for three years. This decision effectively forgoes $16.7 million in fees over that period, but would yield an extra $36 million for the municipality if the grant is approved. The funds are intended for the Stoney Point Sewage Treatment Plant, a $75 million project set for completion by 2032, which will increase sewage capacity to support growth in eastern communities like Comber and Stoney Point/Pointe-aux-Roches. Lakeshore currently charges $40,000 in development fees per new residential unit, which would be reduced by $20,000, with plans for 821 housing starts over three years.
The Town of Tecumseh is also considering an application and conducting analysis to present a recommendation to council on June 18, according to Mayor Gary McNamara. Essex County, however, faces uncertainty: it has no housing targets like municipalities, and its newly approved development charges do not take effect until 2028, making it unclear if the county qualifies for funds. CAO Sandra Zwiers noted that the county will add the issue to its June 17 agenda.
Background and Implications
The program stems from a 2025 federal election campaign promise by the Liberals to cut municipal development charges in half for multi-unit residential housing, with federal-provincial cooperation compensating municipalities for lost revenue over five years. The current initiative requires municipalities to reduce fees by up to 50 percent for three years to access infrastructure funding. For Windsor-Essex, this presents both an opportunity to accelerate housing development and a challenge to quickly align local policies with federal requirements. As the deadline approaches, municipalities are racing to finalize applications, balancing potential growth against the immediate loss of development charge revenue.
