The City of Orillia is set to receive up to $11.3 million from the provincial and federal governments to support upgrades to its wastewater treatment infrastructure.
The funding was announced Friday by provincial and federal officials through the Development Charge Reduction Program (DCRP), which recognizes the city's commitment to reducing development charges by 50 per cent for all housing types over three years.
“Development charges help municipalities pay for the infrastructure growing communities need, but they also add to the cost of a new home,” said Graydon Smith, Ontario's associate minister of municipal affairs and housing.
"These kinds of investments make it possible to build complete connected communities, and they make a real difference for families looking for a place to call home."
The city estimates the development charge reductions, combined with investments in housing-enabling infrastructure, could help unlock 2,025 new homes and save builders as much as $15,791 per home. The program runs until March 31, 2029.
Combined with HST relief on eligible new homes that lasts until March 31, the measures could save homebuyers in Orillia up to $145,791, according to the governments.
"We know that housing affordability continues to be a challenge for families across Ontario," Smith said. "And for too many people, the dream of owning a home feels increasingly out of reach.
The DCRP is part of a broader agreement between Ontario and the federal government to invest in infrastructure that supports housing development. The two governments announced a combined $8.8 billion over 10 years for infrastructure investments in Ontario in March.
"By building infrastructure, we're not only building homes, we are creating opportunities for skilled trade workers, supporting Canadian industries, and strengthening our economy," said Jennifer McKelvie, parliamentary secretary to the housing and infrastructure minister.
The money will support the expansion and modernization of Orillia's existing Wastewater Treatment Centre, infrastructure needed to accommodate future housing growth.
Orillia's funding remains subject to further due diligence, the signing of a Canada-Ontario funding agreement and a transfer payment agreement between the province and the city.
In September, the City of Barrie was awarded roughly $129 million from the same DCRP, which it says will go toward its own wastewater infrastructure improvements.
