The Town of Petrolia is planning to waive development charges on new home builds over a three-year period in order to unlock a $2.3 million investment from the provincial and federal governments.
The funding commitment, through the Development Charge Reduction Program, was announced at Victoria Hall on Monday.
“This is a significant opportunity for our community. It helps encourage new housing and development while allowing us to continue planning for the infrastructure and services that growth requires," said Petrolia Mayor R. Brad Loosley. "Petrolia expects to receive $2.3 million over 10 years, helping us advance important growth-related infrastructure projects while reducing the financial burden on development.”
Subject to further approvals, the Development Charge Reduction Program will be effective from March 30, 2026, to March 31, 2029.
The temporary elimination of development fees is estimated to reduce the cost of building new homes in Petrolia by up to $11,695 per home.
Petrolia introduced development charges in 2024 and has collected nearly $60,000 between mid-2024 and the end of 2025.
Mayor-elect Joel Field recognized the work of municipal staff to identify and apply for the funding opportunity.
"As a council, we understand that we must be thoughtful about how we manage growth and how we invest public dollars," Field said. "Programs like this help us move important projects forward while reducing the financial pressures on our community."
The provincial and federal governments agreed to a cost-matched structure in March to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario through the Build Communities Strong Fund. A media release from the province also said the two governments agreed to provide relief on the full HST on eligible new homes from April 1, 2026, to March 31, 2027.
"This funding will help Petrolia build the infrastructure needed to unlock more housing and support the growth of communities across the city," said Sarnia—Lambton—Bkejwanong MP Marilyn Gladu. "This includes improving the town's water system, as well as upgrading fire services equipment, building park and rec facilities, and upgrading the Public Works fleet."
Gladu said the federal government has worked closely with the province to ensure the funding has flexibility.
"We don't want to be too prescriptive. Every community has different needs," Gladu said.
The town estimates the cost saving measures will allow for 781 new homes.
"This is a great example of what we can accomplish when municipal, provincial, and federal governments collaborate to strengthen our communities," said Sarnia-Lambton MPP Bob Bailey. "By working together, we are creating more housing opportunities, strengthening local communities and building a more affordable future for families in the Town of Petrolia."
Sarnia-Lambton Home Builders Association President Chris Kongas said Monday's announcement "is huge" for new buyers, as well as the construction and development community.
"Development charges are one of the single largest costs in new builds and new developments, so this is a step in the right direction from the feds and province in helping make new housing more affordable," Kongas said.
Moving forward, Kongas said a relaxation on red tape would help move projects forward faster.
"Many developments take five to 10 years before they can break ground, just in studies and planning amendments and red tape," Kongas said, noting that some studies are only viable for two years and need to be redone multiple times depending on the project.
Loosley said there are currently plans for 15 housing projects in Petrolia but noted it will take years to complete.
Moving forward, Loosley said municipal staff will be in touch with developers to provide information about council's consideration of the announced agreement.
