Development Charges Deferral and Grant Program
On June 26, 2025, Regional Council approved a motion that will provide development charge (DC) deferrals and grants-in-lieu of DCs for eligible new residential developments across Peel. This Council decision comes considering the housing crisis in the Region of Peel and across Ontario, which has highlighted the urgent need for more housing.
The development industry has demonstrated that very few residential units will begin construction over the next two years without interventions in the form of incentives. The deferrals and grants approved by Council aim to spur residential housing development and improve affordability within the Region.
The program took effect July 10, 2025. For detail of the program, including eligibility requirements and administration, please refer to the Program Framework.
UPDATE: Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025
Effective November 3, 2025, the Development Charges Act, 1997 has been amended to provide that the DCs for non-rental residential developments shall be paid in full on the earlier of the day a permit is issued authorizing occupation of the building and the day the building is first occupied. The deferral of payment to occupancy is now legislated and is no longer part of the Region’s Program.
The grant-in-lieu of DCs (“DC Grant”) continues to be offered under the Program as follows: The total Region of Peel and GO Transit DCs payable by an applicant in respect of an eligible residential development, net of any credits, exemptions, or legislated reductions applied, will be reduced by a grant-in-lieu of DCs in an amount equal to 50% of the DCs otherwise payable, to be funded by the Region in accordance with the program framework.
IMPORTANT NOTICE: Early Termination of DC Grant on January 31, 2026
In accordance with Council Resolutions 2025-495 and 2025-784, the DC Grant offered as part of this program will terminate effective January 31, 2026.
January 31, 2026 DC Grant Deadline Requirements:
The following conditions pertaining to the termination of the DC grant apply to all eligible applications to the program:
- Subdivision applications: (for hard service DCs calculated at time of subdivision agreement execution): where both the subdivision agreement is executed and a complete application to the Region's Program is submitted, to the Region's satisfaction, prior to January 31, 2026, the associated building permits shall remain eligible for the DCs provided that such permits are issued prior to November 13, 2026, and all other eligibility criteria are met.
- Building permit applications: (for soft service DCs or both hard and soft service DCs calculated at time of building permit issuance): where a completed application to the Region's Program is submitted to the Region's satisfaction, prior to January 31, 2026, the associated building permits shall remain eligible for the Grant provided that such permits are issued prior to January 31, 2026, and all other eligibility criteria are met.
Eligibility criteria
- New Applications: To be eligible for the grant-in-lieu of DCs, Regional DCs must become payable in accordance with Section 6 of the Region’s By-law #77-2020 on or after July 10, 2025, and prior to November 13, 2026.
- Retroactive Applications: For developments that have paid Regional DCs prior to July 10, 2025, the following may be eligible to apply to the program provided all other requirements of the program framework have been satisfied:
- Residential developments for which DCs have been paid, and for which a plan of subdivision has been registered following January 29, 2025, or
- Residential development for which DCs have been paid and for which a building permit was issued following January 29, 2025, and for which plan of subdivision was not required pursuant to the Planning Act.
- To remain eligible for the DC grant, a building permit must be issued for each residential building or structure within the development for which DCs are payable prior to November 13, 2026.
- Prior to the payment of DCs, applicants must enter into a development charges payment agreement with the Region of Peel for the purposes of administering the DC.
- Applicants are required to demonstrate that all savings associated with the Grant portion of the program are passed on to the ultimate homebuyer. Evidence must be provided, satisfactory to the Region, in the form of a standardized clause to be inserted into the Agreement of Purchase and Sale of a residential unit purchased under this program. Region staff may audit such evidence prior to issuance of the Grant.
Applying to the Program
Applicants seeking to benefit from the program must submit a completed application form and any supporting documents to admin.dcs@peelregion.ca.
Application checklist:
- Complete application form
- Proof of DC payment (retroactive applications only)
- Approved draft plan of subdivision or M-Plan (if applicable)
- Other supporting documentation as requested by Peel Region staff
Contact us
For questions or support when applying to the program, email admin.dcs@peelregion.ca.
Application form and other information:
Application form
DC Deferral and Grant Program Application Dashboard
Program Framework
Media release