Sudbury eligible for $45M for dropping development fees to accelerate home construction

Development charges are fees developers pay when building subdivisions and other residential construction. The idea is that the fees help pay to maintain and expand infrastructure such as water and sewer that the new developments will require. (File)

The provincial and federal governments are offering Greater Sudbury as much as $45.3 million for infrastructure in exchange for eliminating development charges for three years.

Development charges are fees developers pay when building subdivisions and other residential construction. The idea is that the fees help pay to maintain and expand infrastructure such as water and sewer that the new developments will require.

Dropping the fees for three years is estimated to reduce the cost of building new homes in Sudbury by up to $22,162 per home, a news release said Oct. 23.

“The funding will help build more homes and community infrastructure in Sudbury while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job,” the release said.

“Rising housing costs have put the dream of homeownership out of reach for far too many people in Ontario,” said Rob Flack, Minister of Municipal Affairs and Housing.

“Residents in Greater Sudbury will save thousands of dollars on the cost of a new home, making homeownership more attainable for young professionals, growing families and seniors alike.”

In March, Ontario and the federal government agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure in Ontario.

The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026, to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home.

“When combined, the elimination of development charges and HST relief could save families in Sudbury up to $152,162 on the cost of a new home,” the release said.

The funding for Sudbury will help fund a project to transition the Garson East drinking water system from groundwater supply to the city’s surface water system.

It will also support a plan to upgrade water mains and improve sanitary sewer infrastructure in the Maley Drive growth corridor.

Help spur construction

Officials with Greater Sudbury estimate the funds will help spur the construction of 3,320 new homes, “supporting a housing market with more choice and greater affordability for homebuyers and renters.”

Municipalities must contribute a minimum of 10 per cent of project costs as part of the agreement with the federal and provincial governments.

Of 444 municipalities in Ontario, more than 200 currently levy development charges.

“Greater Sudbury’s existing development charge moratorium on semi-detached homes and smaller apartment buildings has already helped Zulich Construction bring more affordable housing to market and help more families achieve their goal of moving into a new home,” John Zulich, president of Zulich Construction Corp., said in the release.

“Expanding this relief to all housing types and extending it through March 2029 builds on that momentum, providing builders with the cost certainty and confidence to plan future projects, invest in growth, and establish a sustainable pipeline of new housing in Greater Sudbury for years to come.”