St . Thomas Receives Up to $19.6 Million to Support Housing Growth and Critical Infrastructure

October 21, 2026 | City of St. Thomas

The City of St. Thomas is taking another important step toward building a stronger, more affordable community following an announcement from the governments of Ontario and Canada of up to $19.6 million in funding to support housing growth and critical infrastructure.

Through the Development Charge Reduction Program (DCRP), the City has committed to reducing residential development charges over a three-year period, helping lower construction costs, encourage new housing development and create more opportunities for individuals and families to call St. Thomas home.

From March 30, 2026, to March 31, 2029, development charges will be reduced by 30 per cent for single-detached homes and multi-unit housing, and 50 per cent for remaining residential unit types. These reductions are estimated to lower construction costs by up to $5,961 per home.

Combined with expanded HST relief available on eligible new homes, potential savings could reach up to $135,961, helping make homeownership more attainable.

Investing in Our Growing Community

The proposed $19.6 million investment will support the design and construction of the new Dalewood Water Reclamation Facility, an essential infrastructure project that will help St. Thomas accommodate future residential development while maintaining reliable municipal services.

The City estimates that the development charge reductions, together with investments in housing-enabling infrastructure, could help unlock the development of approximately 6,196 new homes, creating more housing choices for residents, newcomers and future generations.

"This is exciting news for the City of St. Thomas and another great step forward as our community continues to grow," said Mayor Joe Preston. "We want people to be able to find a home here, build a life here and be part of everything that is happening in our City. Reducing development charges will help get more shovels in the ground, create more housing choices and support the people and businesses building our City."

Building for the Future

This investment reflects the importance of collaboration between municipal, provincial and federal governments in addressing housing affordability and ensuring communities have the infrastructure needed to support sustainable growth.

The funding remains subject to required federal and provincial agreements, project reviews and approvals, and the City entering into a Transfer Payment Agreement with Ontario.

As St. Thomas continues to welcome new residents, businesses and opportunities, investments like these will help ensure our community remains a place where people can put down roots, raise families and build their futures.

Learn more: Ontario and Canada Making Homes More Affordable in St. Thomas