Ontario Construction News staff writer
The City of Mississauga is expanding its development charges incentive program in a bid to accelerate construction of purpose-built rental apartment buildings.
Effective immediately, development charges will be eliminated for one-bedroom-plus-den and two-bedroom rental units. To qualify, developers must obtain a building permit before Nov. 13, 2026.
Council approved the plan last week, saying the move is aimed at helping more rental projects move from approval to construction at a time when rising costs have stalled or delayed developments across the region.
“Mississauga needs more rental housing for families who continue to be priced out of home ownership,” Mayor Carolyn Parrish said in a statement. “That’s why we’re eliminating development charges for more types of rental units.
“As a city, we have to do what we can to get rental developments across the finish line and shovels in the ground.”
Changes follow measures introduced in January 2025, when Mississauga became one of the first municipalities in Ontario to reduce or eliminate development charges for residential housing following the release of the mayor’s housing task force report. The Region of Peel voted in June 2025 to match the city’s incentives.
In addition to development charge relief, several other housing initiatives were approved.
$44-million affordable rental housing incentive program, funded through federal support, offers financial incentives to stimulate new affordable rental construction. The second round of applications is open until Feb. 13, 2026.
zoning bylaw updated to permit semi-detached homes and houses on smaller lots in residential neighbourhoods.
To speed up higher-density projects near transit lands within the protected major transit station areas will be ‘pre-zoned’ for development, a move the city says makes it one of the first municipalities in Ontario to implement pre-zoning at this scale.
The municipality is also reviewing urban design requirements and introducing improvements to the condominium plan approval process as part of broader efforts to streamline housing approvals.
The expanded development charge exemption is intended to improve project viability and encourage developers to proceed with new rental construction before the 2026 permit deadline.
