Peel Regional Council approved a motion last month that marks the most significant change in municipal infrastructure funding in decades.

As its core is an initiative to get more homes built faster while relieving the financial strain on both municipalities and homebuyers.

Key to the exercise is a significant deferral in development charges. The fees will be issued without interest until the first occupancy permit is issued — reducing upfront costs for builders and improving project viability.

The region also plans to cut development charges in half for new residential units between July 10, 2025 and November 13, 2026.

It says it is also collaborating with the province on a proposed “Peel Utility Model” for funding infrastructure in a more sustainable, long-term way; engaging with the development industry, including BILD, to ensure cost savings help improve affordability for future homeowners and renters; and applying for funding via the Canada Housing Infrastructure Fund – Municipal Direct Stream, to request grants used to help offset the cost of these initiatives and protect Peel services.

The region says that if it cannot reach a financial agreement with the province by October 17, its development charge reduction will automatically terminate. Council will then have to re-evaluate the reduction.

“This is a historic moment for Peel,” said Regional Chair Nando Iannicca. “Peel Regional Council has stepped forward and now expects the development community to partner by advancing their housing plans, alongside the provincial and federal governments expected funding. This kind of collaboration is what it takes to meet today’s housing and infrastructure challenges head-on.”