The governments of Ontario and Canada have announced a joint investment of $1 billion to support municipalities that do not impose development charges in the construction and maintenance of essential infrastructure. The announcement was made during the Association of Municipalities of Ontario (AMO) conference in Ottawa 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.
Under the new Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million to establish the “non-development charge municipalities stream.” This initiative aims to assist communities in funding crucial infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
During the news conference, McCarthy expressed optimism about the collaboration between federal, provincial, and municipal authorities in achieving tangible outcomes. Initially, there was a discrepancy regarding whether the $1 billion funding was additional to the previously pledged $8.8 billion. However, it was later clarified that the new funding is part of the existing $8.8 billion agreement.
Notably, the City of Toronto has been allocated up to $1.5 billion to mitigate the financial impact of reducing development charges, while the City of Ottawa plans to slash development charges by 54% to receive $478 million in 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.
Applications for the new funding stream will open on October 29, with project selections expected in the spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), commended the initiative, highlighting the growth potential for municipalities not currently collecting development charges.
Additionally, the funding stream aims to bolster local economies amid economic uncertainties, including U.S. tariffs. McCarthy emphasized that infrastructure costs are a significant barrier to housing development and stressed the importance of addressing repair backlogs and limited funding sources for critical projects.
The Ontario Big City Mayors (OBCM) group also reiterated concerns about tackling homelessness and addiction crises in the province. They called for stronger actions, including the establishment of a dedicated ministry for addictions, expanding treatment options, and declaring a state of emergency to address the pressing issues.
Overall, the joint investment of $1 billion is expected to have a positive impact on various communities across Ontario, supporting infrastructure development and addressing key challenges in the housing sector.
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