A funding announcement Thursday in St. Thomas is an important step toward making housing projects more viable and getting more homes built.
The city is receiving up to $19.6 million in exchange for reducing development charges by 30 per cent for single-detached homes and multi-unit housing, and 50 per cent for remaining unit types for a period of three years.
The provincial and federal funding is through the Development Charge Reduction Program.
MP Rob Flack, Minister of Municipal Affairs and Housing, stressed the announcement “Is creating the conditions to ensure communities like St. Thomas can continue to grow and thrive.”
The reduction in development charges is estimated to reduce the cost of building a new home in the city by close to $6,000.
When combined with savings enabled through the expanded HST relief on eligible new homes, these initiatives could save families in St. Thomas as much as $136,000.
London West MP and Deputy House Leader Arielle Kayabaga noted building more homes “Requires partnerships and investments.”
A portion of the funding will be used to help build the $440 million Dalewood Water Reclamation Facility.
St. Thomas Mayor Joe Preston added, “This is exciting news for the City of St. Thomas and another great step forward as our community continues to grow.”
Angela DeVries, CEO of the St. Thomas & Elgin Home Builders’ Association pointed out, “Our association has worked hard to advocate for solutions that address the real costs of bringing housing to market, and we’re grateful to see that advocacy met with action.”
Russell Higgins, President of MacPherson Builders, where the announcement was held at their property on Hoylake Road in Shaw Valley, noted, “As builders and developers, we want to bring forward new housing, but the costs and fees associated with development can make it increasingly difficult to move projects ahead.”
Funding through the Development Charge Reduction Program will support housing-enabling infrastructure projects such as water/wastewater systems, roads, bridges, transit, fire stations and police detachments, as well as community features such as libraries and recreation centres.
Written by Ian McCallum
