York Region addresses housing affordability with 2026 Development Charges Bylaw update offering rate decreases across all classes of development

Newmarket – York Regional Council approved the 2026 Region-wide and Nobleton Area-Specific Wastewater Development Charges Background Studies and Bylaws, resulting in development charge (DC) rate decreases across all classes of development for the first time in the Region's 55-year history.

“Supported by extensive consultation efforts with senior levels of government and industry partners, the 2026 bylaws reflect our commitment to addressing housing challenges to continue building communities where everyone can thrive,” said York Region Chairman and CEO Eric Jolliffe. “The 2026 Region-wide DC Bylaw will help support over 750,000 new residents and 250,000 new housing units across York Region to 2051.”

Major growth-enabling projects captured in the 2026 Region-wide DC Bylaw include the York Durham Sewage System expansion, North Markham Sewer Expansion, York Region’s share of the Yonge North Subway Extension, road expansions and investments in protective services across the Region.

The 2026 Nobleton Bylaw will help fund needed wastewater expansion to service growth in the Village of Nobleton, located in King Township.

Key highlights include:

• Region-wide DC rates decrease between 2% and 9% for residential development and between 2% and 35% for non-residential development
• 2% DC rate decrease for Retail and 11% for Industrial/Office/Institutional development
• DC deferrals for large and small offices, retail development and open-air motor vehicle storage structures
• Retail (including car dealerships) and hotel development are eligible for a DC exemption on expansions up to 50% of the original building's gross floor area, with a special provision that 50% of DCs owed by car dealerships are deferred until the establishment changes its use; industrial, office and institutional were already eligible for the DC exemption
• Ability to transition to the Region’s Development Charges Deferral for Non-Luxury Rental Buildings from a development charges deferral agreement previously entered into under the Region’s DC deferral for Affordable Rental Buildings for five to 20 years, provided previously agreed rent rates are maintained for 40 years
• Refunding any development charges paid toward an affordable rental building since October 1, 2025, subject to a deferral under the Region’s Development Charges Deferral for Affordable Rental Buildings for five to 20 years, so long as a new development charges deferral agreement for Non-Luxury Rental Buildings is entered into, subject to the conditions of the Non-Luxury Rental Buildings policy

The 2026 bylaws reflect changes to the Development Charges Act, 1997, introduced through Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025, in November 2025 to allow developers to defer DC payment until occupancy for non-rental residential development. Changes reflected in the 2026 bylaws include:

• All ground-related, subdivision DCs will be deferred to each occupancy of each building in the subdivision, without the requirement for security; the amount to be paid will be the amount applicable to the building(s) for which the occupancy permit(s) have been issued and will be collected by the local municipality
• All residential high-rise DCs will be deferred to each occupancy permit in the building as they are issued, without the requirement for security, and the amount to be paid will be the amount applicable to the unit(s) for which the occupancy permit(s) have been issued; they will be collected by the local municipality

“Development charges help recover a portion of capital costs needed to support new residents and businesses, such as water, wastewater, roads and community services,” said King Township Mayor Steve Pellegrini, Chair of Finance and Administration.  “While development charge rate discounts are an important step in spurring housing supply in our communities, incentives included in the 2026 bylaws have substantial financial impacts and require senior government funding to ensure responsible future growth.”

Total discounts, deferrals and incentives reflected in the bylaws represent nearly $1.4 billion in financial pressures to be considered within York Region’s Fiscal Strategy. Regional Council may consider further reductions to development charge rates pending details and eligibility for the $8.8 billion Canada-Ontario Partnership to Build program announced in March 2026 to fund housing enabling and transportation infrastructure.

While York Region annually reviews its capital program to ensure infrastructure projects are prioritized based on greatest need and long-term value, the Region continues to advocate for adequate and predictable senior government funding to support provincially directed growth and service delivery. This includes most recently through the Region’s submission to the 2026 Ontario Budget Consultation.

As municipalities across Ontario face increased financial pressures, there will be a stronger focus on phasing projects, optimizing delivery and exploring innovative funding and partnership opportunities to maintain essential services in a sustainable way. Any resulting adjustments will be considered through the 2027 budget process.

The updated 2026 Region-wide Bylaw and Nobleton Bylaw was in effect as of Thursday, May 21, 2026. York Region will continue to meet with local municipal partners to ensure alignment of future DC bylaws and policies. A public meeting was held on Thursday, February 26, 2026, to seek feedback on the bylaws, as required under the Development Charges Act, 1997, including a minimum 60-day public consultation process.

Learn more at york.ca/DevelopmentCharges

The Regional Municipality of York consists of nine local cities and towns and provides a variety of programs and services to more than 1.3 million residents and over 58,000 businesses with 624,000 employees. More information about the Region’s key service areas is available at york.ca/RegionalServices

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Media Contact:

Ava Baccari, Corporate Communications, The Regional Municipality of York
Cell: 289-716-9605
Email: @email