Mississauga introduces additional incentives to encourage purpose-built rental housing

The City continues to take action on development charges to help kick-start construction and make homes more affordable.

February 11, 2026

Today, City Council approved a motion from Mayor Parrish to expand the City’s development charges incentive program. The aim is to help get more purpose-built rental apartments buildings under construction in Mississauga.

The motion eliminates development charges, effective immediately, for one-bedroom plus den and two-bedroom units. To be eligible, developers must pull a building permit before November 13, 2026.

Today’s motion builds on the City’s efforts to encourage more housing construction in Mississauga.  In January 2025, following the release of the Mayor’s Housing Task Force report, Mississauga became one of the first municipalities in Ontario to reduce and/or eliminate development charges for residential housing. The Region of Peel passed a motion to match the City’s incentives in June 2025.

Other important City housing actions include:

  • Funding for affordable housing: Mississauga’s $44 million affordable rental housing incentive program, made possible through federal funding, offers financial incentives to help stimulate the creation of new affordable rental housing. The application window for the second round of funding is open until February 13, 2026.
  • Making it easier and less expensive to build housing in neighbourhoods: Council approved an update to the City’s Zoning By-law to allow semi-detached homes and homes on smaller lots in residential neighbourhoods. The City’s gentle density incentive program provides grants to cover City fees and development charges (if applicable) for fourplexes and additional residential units. The City also offers pre-approved garden suite design plans and materials lists that residents can use free of charge.
  • Simplifying planning approvals for housing near transit: Mississauga is moving forward with pre-zoning lands in the City’s Protected Major Transit Station Areas. Mississauga is one of the first municipalities in Ontario to pre-zone lands of this scale. When fully implemented, this will help speed up the construction of new housing while ensuring it meets the City’s vision for new development.
  • Streamlining City processes: Mississauga is continuing to remove housing barriers by reviewing and making updates to the City’s urban design requirements and launching improvements to the condo plan approvals process.