The governments of Ontario and Canada have allocated $1 billion to assist municipalities that do not impose development charges in constructing and upgrading essential infrastructure. This initiative was announced by Todd McCarthy, Ontario’s acting minister of infrastructure, Rob Flack, Ontario’s minister of municipal affairs and housing, and Jennifer McKelvie, parliamentary secretary to the federal minister of housing and infrastructure, during the Association of Municipalities of Ontario (AMO) conference in Ottawa.
Under the newly established Municipal Housing Infrastructure Program (MHIP), each government level will contribute $500 million to support the “non-development charge municipalities stream.” This funding will aid these communities in financing infrastructure projects such as bridges, roads, and water systems to facilitate new housing developments and safeguard the existing housing supply.
McCarthy expressed optimism about the collaboration between federal, provincial, and municipal governments in achieving common goals. Initially, there was a misconception that the $1 billion funding was separate from the $8.8 billion pledged earlier, but it was clarified that the new funding is part of the existing agreement.
The Ontario government has already earmarked up to $1.5 billion for the City of Toronto to offset the impact of reduced development charges. Similarly, the City of Ottawa intends to slash development charges by 54% to receive significant infrastructure funding.
Premier Doug Ford emphasized the high demand for funding and urged municipalities to further reduce development charges, promising additional financial support if needed. The first round of applications for the new funding stream will commence on October 29, with project selections expected in the spring.
Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), highlighted the positive impact the funding will have on numerous communities. Out of Ontario’s 444 municipalities, over 200 do not collect development charges.
McCarthy underscored the importance of the funding stream in bolstering local economies amidst economic uncertainties like U.S. tariffs. He acknowledged that infrastructure costs pose a significant barrier to housing development, particularly for municipalities with limited funding sources and repair backlogs.
The Ontario Big City Mayors (OBCM) group reiterated concerns about homelessness and addiction crises, urging the province to take decisive actions. They proposed the creation of a dedicated ministry for addictions issues, expanding treatment options, and considering a state of emergency declaration.
Mayor Marianne Meed Ward of Burlington, Ont., emphasized the need for comprehensive solutions and open dialogue on addressing societal challenges. The AMO conference, where Premier Doug Ford is scheduled to speak, will continue until Wednesday in Ottawa.
