St. Thomas secures up to $19.6 million for housing-linked infrastructure

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St. Thomas housing infrastructure funding

Highlights

St. Thomas will receive up to $19.6 million for a new wastewater treatment facility, contingent on finalized government agreements and due diligence.
From March 30, 2026 to March 31, 2029, St. Thomas will cut development charges by 30–50%, lowering home construction costs by up to $5,961 per home.
Combined development charge reductions and expanded HST relief could save St. Thomas families up to $135,961 per home and unlock 6,196 new housing units.

Funding terms and housing cost reductions

As reported by the Ontario Newsroom, the provincial and federal governments announced that St. Thomas qualifies for funding through the Development Charge Reduction Program after agreeing to cut development charges by 30 per cent for single-detached homes and multi-unit housing, and by 50 per cent for remaining unit types from March 30, 2026 to March 31, 2029.

The reduction is estimated to lower the cost of building new homes in St. Thomas by up to $5,961 per home. When combined with expanded HST relief on eligible new homes, the measures could save families in St. Thomas up to $135,961, according to the announcement.

Ontario and the federal government agreed in March 2026 to a cost-matched structure providing a combined $8.8 billion over 10 years for infrastructure investment in Ontario, with Canada's portion flowing through the Build Communities Strong Fund. The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026 to March 31, 2027, offering homebuyers savings of up to $130,000 in addition to the development charge reductions.

Infrastructure impact for St. Thomas growth

Subject to a signed Canada-Ontario Build Communities Strong Fund agreement, further due diligence and an Ontario-municipal transfer payment agreement, the program will provide St. Thomas with up to $19.6 million to support the design and construction of a new wastewater treatment facility.

The City of St. Thomas estimates that construction cost savings during the development charge reduction period, together with investment in housing-enabling infrastructure, would unlock 6,196 new homes. That would expand housing supply and increase choice for both homebuyers and renters as the city grows.

The Development Charge Reduction Program is part of the Canada-Ontario Partnership to Build and is set to deliver funding over 10 years for housing-enabling infrastructure projects. Funding is being prioritized for municipalities that reduce development charges for all residential types by 30 to 50 per cent or more and maintain those reductions for at least three years.

In our earlier coverage of the National Housing Expo in the Philippines, we outlined how housing agencies teamed up with developers to offer around 50,000 units alongside on-site loan assistance and buyer incentives. We also highlighted the Expanded 4PH program’s financing support, including higher loan limits and subsidized or promotional interest rates aimed at improving affordability and boosting housing supply.

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