Ottawa Home Builders Urge City of Ottawa to Maximize Cost Relief for New Home Buyers

 

OTTAWA, ON – June 17, 2026 – The Greater Ottawa Home Builders’ Association (GOHBA) and its members are strongly urging the City of Ottawa to take full advantage of the recently-announced Development Charge (DCs) Reduction Program and ensure it applies for available funding that would allow DCs on new homes to be reduced by a maximum of 50% for the next three years.

 

As part of the assessment criteria for the program, the three essential components are: the percentage of the committed DC rate reduction, the number of housing units benefitting from the relief, and the municipalities financial contribution. To ensure Ottawa is in the best possible position to be able to receive this funding, it is crucial that a commitment is made to the full 50% reduction.

 

“Reducing DCs by 50% could save home buyers up to $29,000 on new homes inside the greenbelt and up to $32,000 on new homes outside the greenbelt,” said GOHBA’s Executive Director, Jason Burggraaf. “This would alleviate a significant pressure on new homeowners not having to carry this on their mortgages, including interest. It will also guarantee that the City gets funding to build needed infrastructure projects, as opposed to being reliant on market activity to collect revenue, which has highs and lows.”

 

Although recent figures by CMHC indicates that starts are down, a full 50% reduction in development charges could spur the construction of up to 71,000 units. While macroeconomic conditions will also be a factor, this quantity of potential units represents half the amount anticipated to be built because of the City’s growth-related infrastructure programs.

 

In May, Ottawa City Councillors received a report from Bloomberg Associates that highlighted widespread feasibility challenges across housing typologies and submarkets in Ottawa. This was due to many factors including construction costs remaining historically elevated, timelines significantly increase financing and carrying costs, and high interest rates that continue to undermine project viability. The municipality doesn’t control the market, but it does control its own fees and charges.

 

Under the DC reduction program, for every dollar the City of Ottawa contributes, it’ll receive $9 in housing-enabling infrastructure funding from the other levels of government.

 

“What is the downside of applying for 50% funding for projects that you’re planning on building in the next few years? With approximately $14B worth of projects needed to support the City’s growth, why leave hundreds of millions of dollars on the table?” asked Burggraaf.

 

The Development Charges Reduction Program provides a combined $8.8 billion over 10 years for municipalities that reduce DCs and maintain those reductions for three years.

 

Applying for maximum DC relief would also affirm the Mayor’s commitment to make Ottawa "the most housing-friendly city in Canada," and follow up on a May 13th City Council motion to allow builders participating in the DC deferral program to pay the lowest applicable rate.

 

“The choice is between stable, predictable funding for growth-related infrastructure through the DC Reduction Program or hoping that the market will pick up and exceed our best years of activity – despite the challenges identified by Bloomberg,” said Burggraaf. “If homes aren’t getting built then the City is not receiving any DC revenue. Getting funding for a 50% reduction in DCs is a win for home buyers and for the City.”

 

GOHBA is committed to working with all levels of government, policymakers, industry stakeholders, and communities to get homes built and advance practical, scalable solutions to increase housing supply and affordability for residents in Ottawa and across Ontario, now and into the future.