Builders of purpose-built rental apartments in Mississauga will no longer pay city development charges on one-bedroom-plus-den and two-bedroom units, after city council approved a motion from Mayor Carolyn Parrish on Wednesday.

The change takes effect immediately. To qualify, developers must pull a building permit before Nov. 13, 2026.

Development charges are fees that municipalities collect from builders to help pay for roads, water, parks and other services that new homes need. The city says removing them for more unit types is meant to get stalled rental projects under construction.

Mississauga needs more rental housing for families who continue to be priced out of home ownership.

— Mayor Carolyn Parrish

Building on last year's cuts

In January 2025, after the Mayor's Housing Task Force reported, Mississauga became one of the first Ontario municipalities to cut development charges for housing. Council cut city residential development charges in half for projects that pull a building permit before Nov. 13, 2026, and eliminated them for three-bedroom units in purpose-built rental buildings. Peel Region matched the city's incentives in June 2025.

Parrish's motion said last year's measures had helped speed up residential development, but noted the industry's view that purpose-built rental remains economically unviable without further incentives.

Other city housing measures

  • A $44-million affordable rental housing incentive program, funded through the federal government, with the second funding round open until Feb. 13

  • Zoning changes allowing semi-detached homes and smaller lots in residential neighbourhoods

  • Gentle density grants for fourplexes and additional residential units, plus free pre-approved garden suite plans

  • Pre-zoning of land around protected major transit station areas to speed up approvals near transit

  • Reviews of urban design requirements and the condo plan approval process

In announcing the change, Parrish said the city has to do what it can to get rental developments across the finish line and shovels in the ground.