Saugeen Shores is prepared to significantly reduce residential development charges in an effort to secure provincial and federal infrastructure funding aimed at supporting new housing.
Council has authorized the town's Chief Administrative Officer to enter into an agreement under Ontario's Development Charges Reduction Program if Saugeen Shores' application is successful.
The town said that as of its August 10, 2026 council meeting, it "had not yet received any communication from the Province" regarding the application.
However, council gave the CAO authority to move quickly if funding is offered, including committing Saugeen Shores to a "50 per cent decrease in residential Development Charges from March 30, 2026 rates."
The Development Charges Reduction Program is a joint federal-provincial initiative intended to lower the cost of building housing while helping municipalities pay for infrastructure needed to support growth.
Municipalities seeking funding are required to reduce residential development charges by between 30 and 50 per cent or more and maintain those reductions for at least three years. Applications are assessed partly on the size of the reduction, the number of homes expected to be enabled and the municipality's own financial contribution.
For Saugeen Shores, the proposed reduction would be substantial.
Town staff reported that the municipal development charge for a single-detached home stood at $36,731 on March 30. A 50 per cent reduction from that benchmark would bring the municipal charge to approximately $18,366.
That is also significantly below the town's newly adopted 2026 development charge. Under the current schedule, a single or semi-detached dwelling receiving full municipal services carries a Saugeen Shores development charge of $45,021. Apartments with two or more bedrooms are charged $27,304, while bachelor and one-bedroom apartments are charged $15,987.
Those municipal charges are separate from development charges collected on behalf of Bruce County.
Development charges are generally used to pay for infrastructure required as communities grow, including roads and municipal services. Saugeen Shores says development-charge revenue has also helped finance projects such as the new Pryde Aquatic and Wellness Centre.
The incentive for municipalities to reduce that revenue is access to senior-government infrastructure funding. The federal and provincial governments have said the Development Charges Reduction Program will provide funding over 10 years for housing-enabling infrastructure, including water and wastewater systems, roads, bridges and other community infrastructure.
Saugeen Shores' authorization does not mean the lower rates are in effect yet. The change remains dependent on the town being accepted into the program and entering into an agreement with the province.
