Developers building rental housing in Mississauga will pay no regional development charges on larger units for most of this year. Peel Regional Council voted on Thursday, Jan. 22, to expand its development charges grant program.
The region will give grants covering 100 per cent of its development charges on one-bedroom-plus-den, two-bedroom and three-bedroom units in purpose-built rental buildings. These are buildings designed to be rented long term rather than sold as condos. The grants apply until Nov. 13, 2026.
Development charges are one-time fees on new construction that help pay for the water, sewer and road infrastructure growth requires. They add to the cost of building new homes.
What else changed
The development charge grant-in-lieu program is extended to Nov. 13, 2026, giving projects more time to qualify
Subdivision applications keep their eligibility as long as a building permit for footings and foundations is issued by Nov. 13, 2027
All changes stay subject to the program's existing framework and requirements
The region first created the program in June 2025. It offers development charge deferrals and grants in place of the charges for eligible new residential projects across Mississauga, Brampton and Caledon. The region says the latest changes reflect the realities of large, complex developments and a tough housing market.
Several councillors said during the meeting they wanted more affordable rental units big enough for families. The region says the grants should help deliver more family-sized and affordable rentals.
Addressing today's housing challenges requires strong collaboration.
— Nando Iannicca, Peel Regional Chair and CEO
Iannicca said the region is also counting on its large infrastructure capital program, including expanding the regional water system, to help speed up housing supply.
The program covers only Peel Region's development charges, not those set by the City of Mississauga.
