By Pam Wright
Local Journalism Initiative Reporter
Housing starts could be getting a boost in Chatham-Kent if council agrees to wipe out development charges for a three-year period.
That’s the hope of Mayor Darrin Canniff who put the idea forward at a recent Housing Affordability Summit in Chatham. Part of a panel with other government leaders, the mayor said it’s another way to spur growth, effectively dropping the price of a home anywhere from $20,000 to $30,000.
According to Canniff, who spoke with reporters after the summit, the idea was conceived through discussions with the Chatham-Kent Homebuilders Association.
“Part of it is, we are looking to eliminate the development charges in Chatham-Kent for the next three years,” Canniff explained, adding the move still needs to come before council for approval.
It would “cover off” any existing unsold homes, bunkhouses and all other residential homes, he said, adding a loss in revenue would be offset by way of provincial funding to support big-ticket infrastructure needed to expand housing.
“We’ve submitted a list of infrastructure projects to build that the province will help fund, so we can balance it out,” Canniff said. “If we have to make some contribution, so be it, but we need to make it affordable for people.
“If nobody’s buying homes, our community’s not growing and, as we move forward, our priority is growth,” he said.
The announcement that C-K may pause development charges was well received by the summit’s audience, particularly representatives of the Chatham-Kent Home Builders Association.
Dan Van Moorsel, executive director of the organization, said development charges won’t be “going away” – it’s about using the funding differently.
“So, if you save a homeowner $20,000 on a home, they’re going to spend it in your community,” he said. “We build those houses and the province supports us financially, we use that money to repurpose it for other projects.”
With the provincial push towards skilled trades, Van Moorsel said building more homes brings “great jobs” to the community.
“This is about retaining our youth,” he added. “This just isn’t an announcement about development charges relief, this is a commitment to trades, to people in our community helping find and access other provincial and federal funding to support programs” that fight homelessness and create affordable housing.
Following the summit, Chatham-Kent was awarded a $440,000 cheque from the province for exceeding its housing targets in 2025. Associate Minister of Municipal Affairs and Housing Graydon Smith, who was part of a summit panel, presented the Building Faster Fund cash, rewarding C-K for exceeding its target for the third straight year.
In 2025, 577 homes were built in the municipality – achieving 525 per cent of C-K’s goal.
“Chatham-Kent’s strong results show what’s possible when municipalities remove barriers and move projects forward,” Smith told reporters. “Our government is recognizing that leadership by reinvesting in the infrastructure needed to sustain this momentum and support long-term growth. By exceeding its housing target, the community is helping create more opportunities for families and workers to find a place to call home.”
According to Smith, the Ontario government is trying to speed up construction of new homes and infrastructure by streamlining development processes and reducing costs through the HST Relief Implementation Act, rebating residential property rebates.
Buyers of eligible new homes valued at $1 million or less would receive the full 13-per-cent relief on their home, to a maximum value of $130,000, while buyers of eligible homes valued at $1 million to $1.5 million would see relief of $130,000. The HST relief on eligible homes valued above $1.5 million would decline gradually to a maximum of $24,000 for homes valued at $1.85 million or more.
Plus, said Smith, Ontario has introduced the Development Charge Reduction Program as part of the $8.8 billion Canada-Ontario Partnership to Build. Its aim is to provide funding for housing-enabling infrastructure projects over 10 years. Funding will be prioritized for municipalities that reduce and maintain reductions on development charges.
