The Canada Mortgage and Housing Corporation (CMHC) has released a new analysis asserting that simply cutting municipal development charges will not adequately resolve the housing affordability crisis in Canada. Development charges are fees that municipalities impose on developers, primarily to fund infrastructure necessary for new housing developments. In an effort to boost housing supply and improve affordability, the federal government is investing billions to encourage municipalities to halve these fees. The CMHC's analysis indicates that reducing or eliminating these charges could potentially increase the number of viable housing projects in certain cities by as much as 14%. However, the agency cautions that cities already facing high development charges would experience the most significant benefits, while other municipalities may see only marginal gains. The CMHC stresses that development fees play a crucial role in the fiscal planning of many cities and suggests that it is unrealistic to expect that eliminating these charges will fully restore housing affordability across the country.