Federal Housing Minister Gregor Robertson had a chance to commit to cutting development fees in half. Instead, he hedged. Hard.

Speaking at a Toronto press conference, Robertson acknowledged that development charges are "a significant challenge for the cost of building across Canada." But when pressed on whether the government would actually follow through on its campaign promise to slash these fees by 50%, he pivoted to vaguer language about "ongoing negotiations" and teased that more details might come in the November 4 federal budget.

"We initially were looking at 50 per cent reduction in partnership with provinces and territories. We're working through that process now across the country," he said.

Translation: don't hold your breath.

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What Development Charges Actually Cost You

Here's the part that matters. Development charges can add as much as $135,000 to the price of a new home in Ontario. That's not a typo. One hundred and thirty-five thousand dollars.

These fees are supposed to fund infrastructure like roads, sewers, and water systems. The idea makes sense on paper. New homes create demand for services, so developers pay upfront to cover those costs. Fair enough. But Rick Kedzior, president of the Ontario Real Estate Association, points out that municipalities are increasingly using these charges for general revenue. They've become a cash grab, and buyers are the ones footing the bill.

When you're already stretching to afford a down payment, an extra $135,000 isn't just inconvenient. It's the difference between buying and not buying. And when the federal government promises to cut that burden in half, then backs away from the commitment, it stings.

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Toronto Gets $283 Million, But There's a Catch

The same day Robertson dodged questions about development charges, Ottawa announced up to $283 million through the Canada Housing Infrastructure Fund to upgrade Toronto's Black Creek sewer system. The city is kicking in another $425 million.

This project has been in the works for years. It's expected to expand capacity for an additional 63,000 homes in the York-South Weston area, where development had been capped because the infrastructure couldn't handle it. Toronto Mayor Olivia Chow emphasized the benefits beyond housing. The upgraded system will protect homes, schools, and businesses from flooding during extreme weather. It'll keep western waterfront beaches cleaner after major storms. Those are real wins for the city. But here's the thing. That $425 million from the city? Where do you think that money comes from? It's not appearing out of thin air. Development charges, property taxes, other fees. One way or another, it filters down to residents and buyers.

So Ottawa is putting money into infrastructure that will unlock new homes, which is good. But they're also backing away from the promise to cut the fees that make those homes unaffordable in the first place.

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The First Build Canada Homes Project Launches

The announcement also marked the launch of the first project under Build Canada Homes, the federal government's new affordable housing agency. The Arbo Downsview development will add 540 units, with at least 40% designated as affordable housing.

Developers using factory-built technologies got the call out this week. Modular construction, prefab housing, that sort of thing. It's a smart move. Factory-built homes can cut costs and speed up timelines, which we desperately need right now.

But again, affordability isn't just about how many units you build. It's about what they cost. And if development charges keep piling tens of thousands of dollars onto every new home, even the best construction methods won't solve the problem.

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Why This Matters More Than Infrastructure Announcements

Infrastructure funding is important. Nobody's arguing that. Toronto needs better sewers. Cities need upgraded systems to handle growth. But infrastructure funding doesn't fix the affordability crisis if the fees attached to every new home keep climbing.

The Liberal government made a clear promise during the campaign: cut development charges in half. That would have saved buyers up to $67,500 per home in some markets. For a first-time buyer scraping together a down payment, that's life-changing money.

Now we're getting "we're working through that process" and "you'll see some forward movement this fall." That's political speak for "we're not sure we can deliver this."

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The Budget Is November 4

Robertson hinted that the November 4 federal budget might include some next steps. Maybe it will. Maybe we'll see a real plan to tackle development charges. But the tone at this press conference doesn't inspire confidence.

When a politician sidesteps a direct question about a specific campaign promise, it usually means the promise is getting watered down or quietly shelved. And when that promise involves tens of thousands of dollars that could make homeownership possible for someone, the stakes are high. Development charges aren't going away on their own. Municipalities like the revenue too much. If the federal government doesn't step in with real leverage, real money, or real consequences for provinces and cities that refuse to lower these fees, nothing will change.

And buyers will keep paying $135,000 just for the privilege of building a new home.