Barrie is set to receive up to $129.2 million from the federal and provincial governments after agreeing to cut residential development charges in half for three years.
The funding through the Development Charge Reduction Program was announced Sept. 28 at a subdivision under construction in south Barrie.
Several dignitaries were at the announcement, including Mayor Alex Nuttall, local MPPs Doug Downey and Andrea Khanjin, Ontario Minister of Municipal Affairs and Housing Rob Flack, Federal Parliamentary Secretary to the Minister of Housing and Infrastructure Jennifer McKelvie and several city councillors.
The funding follows Barrie’s commitment to cut residential development charges by 50 per cent, retroactive to March 30, 2026, through March 31, 2029. The reduction could save up to $62,223 per new home.
The $129.2 million will primarily fund wastewater-treatment upgrades to increase capacity and support future housing growth. The city estimates the measures could help unlock 23,364 new homes.
Nuttall said the development charge reduction will result in substantial savings for local homebuyers.
“It means that our development charges are going down. It means when you stack it on top of the HST amount that’s been already talked about here, we are talking about $150,000 in total savings,” he said.
The federal government said expanded GST/HST relief could save eligible new-home buyers up to $130,000, bringing potential combined savings with Barrie’s development charge reduction to $192,223.
The program is part of the $8.8-billion Canada-Ontario Partnership to Build, which funds housing- enabling infrastructure. Participating municipalities must maintain reduced development charges for at least three years and contribute at least 10 per cent of eligible project costs.
Khanjin said reducing costs for builders and increasing investment in communities are connected to the goal of creating complete communities.
“We heard loud and clear from people, from industry, from all walks of life because we know if we can put more money into the economy, everyone is better off,” she said.
“It helps support our communities, it helps support our service clubs, and ultimately helps us maintain the ultimate goal of complete communities.”
Flack said the program is intended to address housing affordability by creating conditions for more homes to be built.
“I think everyone can agree that Canada is facing an affordability challenge, an affordability crisis, if you like,” he said. “When we talk about homes, and new home starts, we talk about affordability.”
Downey said the funding demonstrates the importance of co-operation between governments.
“It is critical that we’re all moving together and that we’re working together,” he said. “To see three levels of government come together in the collective interest of our community is just absolutely fantastic.”
The $129.2 million remains conditional on further due diligence and required agreements between the governments and the city.
