Program overview

Deferral

The collection of Peel Region and GO Transit DCs will be deferred, without interest, for eligible residential development to the date of issuance of the first occupancy permit for each building or structure for which DCs are payable.

Grant

The total Peel Region 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 Peel Region in accordance with this program framework.

Early termination of grant

The grant-in-lieu of DCs offered as part of this program will terminate effective January 31, 2026.

The following provisions pertaining to the termination of the grant apply to all eligible applications to the program:

• Subdivision applications
  Where hard service DCs become payable at time of subdivision agreement execution, and where a DC payment agreement is entered into prior to January 31, 2026, the associated building permits shall remain eligible for the DC Grant provided that such permits are issued prior to November 13, 2026, and all other eligibility criteria are met.
• Building permit applications
  Where soft service DCs or both hard and soft service DCs become payable at time of building permit issuance, and where a DC payment agreement is entered into 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.

Retroactive applications

As approved by Council Resolution 2025-583, the following developments that have paid Peel Region DCs prior to July 10, 2025, 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 developments 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.

Effective date

The program began on July 10, 2025.

Residential development

This deferral and grant program applies exclusively to all new residential development in the Peel Region for which Peel Region DCs are payable in accordance with Subsection 2(2) of the DC Act and the Region’s DC By-law #77-2020, subject to such further requirements as noted herein.

DC deferral eligibility timeline

To be eligible for the deferral of DCs otherwise payable, Peel Region DCs must become payable in accordance with Section 6 of Peel Region’s DC By-law #77-2020, on or after July 10, 2025, and prior to November 13, 2026.

Deferrals shall not apply retroactively to residential development for which DCs became payable, in whole or in part, prior to July 10, 2025.

Deferrals pursuant to this framework are not intended to supersede existing DC Payment Agreements entered into pursuant to the DC Act prior to the adoption of this framework.

DC Grant timeline and calculation

To be eligible for the grant-in-lieu of DCs, Peel Region DCs must become payable in accordance with Section 6 of the Peel Region’s DC By-law #77-2020 on or after July 10, 2025, and prior to November 13, 2026.

Grants-in-lieu of DCs shall only apply retroactively to residential developments for which the Retroactive applications section of this Framework applies. Grants-in-lieu of DCs shall be calculated on an individual building or structure basis.

Building permit issuance deadline

To be eligible for the deferral and grant-in-lieu of DCs, a building permit allowing for footings and foundations, issued pursuant to the Building Code Act, 1992, for each building or structure for which DCs are payable must be issued prior to November 13, 2026, subject to the early termination criteria outlined in the Early Termination of Grant section of this Framework.

Buildings or structures within residential developments which fail to meet the building permit requirement noted herein will not be eligible for the deferral or grant-in-lieu program. Failure to meet the building permit issuance deadline will result in outstanding DCs becoming immediately payable, in full.

Peel Region and GO Transit DCs

The deferral and grant-in-lieu of DCs apply specifically to the Peel Region and GO Transit portion of DCs payable. DCs imposed by local municipalities may be subject to different policies administered by the local municipality.

Passing of savings to the homebuyer

Pursuant to the Council resolutions, eligible 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 Peel Region, in the form of a standardized clause to be inserted into the Agreement of Purchase and Sale (“APS”) of a residential unit purchased under this program. Peel Region employees may audit such evidence prior to issuance of the grant.

Development charges payment agreement

To participate in the deferral and grant-in-lieu of DCs program, eligible applicants will be required to enter into a Development Charges Payment Agreement with Peel Region, agreeing to the terms of the program.

This agreement will formalize the deferral of DC collections until the first occupancy permit is issued in respect of each residential building or structure for which DCs are payable and shall set out the terms of any grants-in-lieu of DCs, subject to conditions stipulated in the agreement.

Payment and grant funding at permit issuance

Applicants seeking to forego the deferral of payment to occupancy and pay Region DCs at time of building permit issuance will be eligible for the 50% grant-in-lieu of DCs in the absence of a DC payment agreement, if all other eligibility criteria are met.