A Senate committee dominated by Liberal appointees has endorsed a key housing proposal from Conservative Leader Pierre Poilievre, calling on Ottawa to force reductions in municipal development charges as a condition of receiving federal infrastructure money.Blacklock's Reporter says in a new report, the Senate banking committee said federal infrastructure spending remains the main lever available to Ottawa to rein in local fees that add heavily to housing costs. Senators urged the government to act quickly, warning that development charges have become a major obstacle to new home construction.“The committee notes federal funding for municipal infrastructure is the main tool available to the federal government to require reductions in municipal fees and boost accountability,” the report said, stressing the urgency of coordinated action with provinces, territories and municipalities.Where provincial or territorial law allows, the committee recommended Ottawa require municipalities to lower development charges in exchange for federal infrastructure dollars. Senators said such fees now represent a “significant cost barrier” preventing badly needed increases in housing supply.The report cited evidence from the Canada Mortgage and Housing Corporation showing development charges have expanded far beyond their original purpose. .In Ontario alone, municipalities have accumulated more than $12 billion in development charges, senators noted.Despite cooling construction and land costs, housing remains unaffordable in many markets due to persistent supply shortages, the committee said. The report warned that without decisive action, prices will remain out of reach for buyers.Poilievre campaigned in 2025 on a proposal to share costs equally with municipalities that cap development fees at $50,000 per home. According to a 2024 Canadian Home Builders’ Association study, development charges exceed that level in several major cities, including Ottawa at $78,000, Calgary at $93,000, Vancouver at $104,300, Saskatoon at $112,000 and Toronto at $195,300.Poilievre has argued that escalating municipal fees and regulatory costs are driving up home prices, saying more money from a new home now goes to bureaucracy than to the tradespeople who build it..“For the first time in our history an entire generation of young people can’t imagine buying their own house,” he said last April.The Senate committee also recommended tax-free municipal bonds to encourage new construction, along with consideration of a national home renovation tax credit and tax measures to promote the transfer of commercial apartment buildings into non-profit ownership.
