Hamilton will receive a substantial $572 million in funding from the federal and Ontario governments for crucial infrastructure projects, including new housing developments. The city has also decided to waive residential development charges for a three-year period.
The announcement was made in Stoney Creek by Municipal Affairs and Housing Minister Rob Flack, Mayor Andrea Horwath, and federal officials, against the backdrop of a housing project by Marz Homes. The funding will be allocated to support six key projects, such as road widening and reconstruction on Barton Street, Lewis Road, Rymal Road, and Garner Road, along with expansions to the Woodward Avenue Wastewater Treatment Plant and Greenhill Water Pumping Station.
Mayor Horwath hailed this funding as the most significant investment in Hamilton’s roads, water, and wastewater infrastructure to date. She emphasized that this investment will enhance roads, bolster water and wastewater capacities, and pave the way for over 31,000 new homes across Hamilton.
The Woodward expansion project is expected to increase wastewater capacity for up to 97,000 additional homes, while the Greenhill initiative could accommodate another 4,400 residences.
The $572 million funding comes from Ontario’s Development Charge Reduction Program (DCRP), which is part of a larger $8.8 billion fund allocated by the federal and provincial governments for infrastructure projects over the next decade. Municipalities benefiting from this funding are required to reduce development charges by a minimum of 30% for three years and contribute at least 10% towards project costs.
Minister Flack highlighted that Hamilton stood out in receiving the funding due to its complete elimination of development charges, earning the city high praise. The removal of charges for residential developments will be retroactive from March 30 of this year to March 31, 2029. Flack commended Hamilton’s application as the most robust submission under the DCRP.
Eliminating development charges is estimated to potentially decrease the cost of constructing a new home by up to $100,442. This reduction, combined with up to $130,000 in savings from expanded HST relief on eligible new homes, could result in total savings of over $230,000 for Hamilton families looking to purchase a new home.
John-Paul Danko, Liberal MP for Hamilton West—Ancaster—Dundas and former Hamilton councillor, emphasized the importance of ensuring that consumers benefit from these cost reductions. He suggested that the savings could be utilized to construct more family-oriented housing units, including two- and three-bedroom homes.
Construction is scheduled to commence on Lewis Road in 2027, Rymal Road in 2028, and a section of Barton Street from Fruitland to Fifty Road in 2029, as outlined by the city. Hamilton experienced a notable increase in housing starts in 2025, with 4,074 recorded, marking a 65% rise from the previous year.