GTA Construction News staff writer
Peel Regional Council has approved significant updates to the Region’s Development Charges Grant Program, taking another step to support housing construction and improve affordability across Peel. The changes, endorsed by council on Jan. 22, 2026, reflect Peel’s ongoing efforts to modernize infrastructure funding and accelerate the delivery of new homes.
“Addressing today’s housing challenges requires strong collaboration,” said Nando Iannicca, Peel Regional Chair and CEO. “Peel Region continues to work with all levels of government, the development community and local municipalities to tackle housing affordability and supply challenges — not only through these bold changes, but through the extensive infrastructure capital program already in place to rapidly expand our world-class water system.”
The latest program updates build on a landmark decision approved by council in June 2025, which marked the most significant shift in municipal infrastructure funding in decades. Together, the measures are designed to reflect the realities of large, complex development projects and ongoing economic pressures facing the housing sector.
Under the updated program, council approved the following changes:
- The development charge grant-in-lieu initiative has been extended to Nov. 13, 2026, providing additional time for eligible projects to access incentives and advance toward construction.
- Subdivision applications will remain eligible for the program provided a building permit for footings and foundations is issued by Nov. 13, 2027.
- Peel Region will provide 100 per cent development charge grants for one-bedroom plus den, two-bedroom and three-bedroom purpose-built rental units until Nov. 13, 2026, supporting the delivery of more affordable and family-sized housing
Regional staff said the enhancements are expected to support a broader range of housing projects, including affordable and family-oriented units, while helping developers navigate rising construction costs and economic uncertainty. The updated program is intended to enable more projects to move forward and better meet the growing needs of Peel communities.
Council’s June 2025 decision introduced a new approach to infrastructure funding aimed at getting homes built faster while easing financial pressure on both municipalities and homebuyers. Key elements of that motion included deferring development charges without interest until first occupancy permits are issued, reducing upfront costs for builders and improving project viability.
The motion also temporarily reduced residential development charges by 50 per cent from July 10, 2025, to Nov. 13, 2026, with the reductions funded through grants-in-lieu while the region seeks longer-term provincial and federal support.
In addition, Peel is working with the province on a proposed Peel Utility Model to establish a more sustainable, long-term approach to infrastructure funding. The region is also engaging with the development industry, including the Building Industry and Land Development Association (BILD), to ensure cost savings contribute to improved affordability for future homeowners and renters.
