Vaughan reduces development charges to zero to accelerate housing construction

The City of Vaughan is taking bold action to accelerate housing construction and help make life more affordable for residents.

At today’s Council meeting, Vaughan Council ratified a policy, with recommendations from a staff report (PDF), to enable the City to temporarily reduce development charges on residential developments to zero. The exemption is in effect from Feb. 25, 2026, to Oct. 31, 2027.

This policy comes following Mayor Del Duca’s Mayoral Direction 1-2026, issued on Feb. 25, 2026, directing staff to report back with a policy framework to advance this initiative. The goal is to get shovels in the ground, support businesses and job creation, and get construction underway so more housing options are available.

By temporarily exempting development charges for projects that begin construction within the defined period, the City aims to move projects from approval to construction quickly and increase housing supply. This initiative is also intended to help achieve the City’s housing targets and support the approximately 50,000 Vaughan residents who work in the construction industry.

QUOTE

“In times of economic uncertainty, strong local leadership means securing our future and creating the conditions for growth. It’s about accelerating housing supply, supporting affordability and sending a clear signal that Vaughan is prepared to lead in tackling the housing crisis with immediate action. Home ownership is increasingly out of reach for our residents, in particular for young families, and we need every level of government to help tackle this challenge. I am hopeful that a combination of these changes – at the municipal level and beyond – will give a boost to the housing sector, so people can get back to work and more homes of every type can be built. Vaughan is not standing still – we will continue to take strong, clear and ambitious action to get shovels in the ground so current residents, and future generations, have the opportunity to live and thrive here.”

- Mayor Steven Del Duca

QUICK FACTS 

• At today’s Council meeting, Vaughan Council ratified a policy, with recommendations from a staff report (PDF), to enable the City to temporarily reduce development charges on residential developments to zero. The exemption is in effect from Feb. 25, 2026, to Oct. 31, 2027.
• Development charges are fees charged by a municipality to developers to help fund the infrastructure required to support growth. 
• On Nov. 19, 2024, Vaughan Council approved a policy with reductions to the City’s development charges, through the use of agreements, which were among the highest in the Greater Toronto Area, following a Member’s Resolution (PDF) from Mayor Del Duca to address the housing crisis in Ontario.
• The City’s development charge rate available for low-rise residential is $50,193. Before the City’s reduction of development charges on Nov. 19, 2024, the City’s published development charge rate for low-rise residential was $94,466. 

LEARN MORE

• Staff report: Time Limited Exemption of City Development Charges for Residential Developments – Response to Mayoral Directive 1-2026 – March 31, 2026
• Staff communication: C33 – Development Charges Reduction Options – Response to Member’s Resolution (PDF) – Nov. 19, 2024
• Staff report: Development Charges Reduction Options – Response to Member’s Resolution (PDF) – Nov. 12, 2024
• Member’s Resolution: Making Housing More Affordable in Vaughan (PDF) – Sept. 17, 2024