The City of Barrie has received more than $129 million in provincial funding to help reduce their development charges for the next three years. Minister of Municipal Affairs and Housing Rob Flack was in Barrie on Monday to make the announcement. “So for a $600,000 or $700,000 home, you can be looking at anywhere from $130,000 to $160,000 savings and that’s up front,” said Flack. “The HST rebate is up front and the Development Charge Reduction Program (DCRP) at purchases of sale agreements so this is real savings, this is real affordability for Ontarians, for the people of Barrie.” According to the province, the reduction of the development charge over the three-year period is estimated to drop the cost of a new home by $62,223. Combined with the HST relief, homebuyers could save up to $130,000 off the cost of a new home. “It’s been so difficult over the last five years with the massive increases to the cost of housing,” said Barrie Mayor Alex Nuttall. “We want our young people to be able to get into that first home, and today is a massive shot in the arm towards our young people, people being able to afford that.” Dave Wilkes, president and CEO of the Building Industry and Land Development Association (BILD), said this will allow more people to live how they want to live. “The people that have been perhaps renting a basement apartment and people that have been living in a type of accommodation that wasn’t exactly what they wanted for their family, this is going to unlock that housing,” said Wilkes. He added an announcement like this will have a ripple effect through the housing market. “There’s a number of benefits for home buyers: the HST relief, the DCRP that are going to bring more product to the market because it’s going to increase project viability, and then the market is adjusting and providing the right type of housing for the people that are looking to buy it,” said Wilkes. Nuttall added that the city is trying to make an impact where it can when it comes to affordability. “Everything that we do needs to crack at that affordability issue we’ve been facing,” said Nuttall. “And as you know, cities can’t touch the grocery store and they can’t do anything about the gas bars, but we can do something about the cost of housing.” The incentive is retroactive to April 1 of this year, meaning development fees are already being waived.
