OTTAWA — The federal housing minister wouldn’t commit Tuesday to a Liberal election campaign promise to push cities to cut the fees that help fund local infrastructure.
In Toronto for an announcement, Housing Minister Gregor Robertson did not answer directly when asked whether the Liberals are still committed to their promise to cut municipal development charges in half to lower the cost of homebuilding.
“Development charges are a significant challenge for the cost of building across Canada, and that’s why we made a commitment to reduce those charges,” Robertson said.
“We initially were looking at 50 per cent reduction in partnership with provinces and territories. We’re working through that process now across the country.”
The minister suggested more details will come in the federal budget on Nov. 4.
The Liberals’ spring election platform committed to cutting development charges in half for five years by working with provinces and territories to fill gaps left by foregone revenue. The platform cited upcoming federal investments in water, power lines and wastewater systems as ways to offset the lost cash.
Development charges — fees paid by builders primarily to cover the infrastructure costs associated with new housing — have been a rapidly growing source of funding for municipalities in recent years.
Some housing advocates say those rising fees add to the cost of building and undermine efforts to fill the housing supply gap in Canada.
Toronto Mayor Olivia Chow said at the Tuesday announcement that financing is a major hurdle keeping many builders from breaking ground on new homes, and that’s why the city is talking with Ottawa about adjusting development charges.
“We’re really focused on bringing the cost of building down. That’s the goal here,” Robertson told reporters.
“Infrastructure for cities is a huge part of that cost, and development charges — certainly here in Toronto and Vancouver, my hometown — are very closely connected to that infrastructure cost.”
The minister was in Toronto to announce federal funding for the city’s sewer infrastructure and for the first housing project to go forward through the federal government’s new affordable housing agency, Build Canada Homes.
The federal government will provide up to $283 million through the Canada Housing Infrastructure Fund to upgrade the city’s Black Creek sewer system, alongside $425 million in funding from the city.
The sewer currently serves some 350,000 residents. Housing, Infrastructure and Communities Canada said in a media release that improvements to the line will allow Toronto to expand the system to support building an additional 63,000 homes.
The first Build Canada Homes project will see 540 units added at Arbo Downsview, at least 40 per cent of which will be affordable housing. The agency will launch a request for qualifications this week for developers that can use factory-built housing technologies to deliver the project.
This report by The Canadian Press was first published Oct. 14, 2025.
Craig Lord, The Canadian Press
