The Ontario and Canadian governments have announced a joint investment of $1 billion to support municipalities that do not impose development charges in enhancing and maintaining essential infrastructure. The initiative was revealed 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 at 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. The focus of the “non-development charge municipalities stream” will be to assist these communities in funding critical infrastructure such as bridges, roads, and water systems to facilitate new housing constructions and safeguard the existing housing stock.
McCarthy expressed positivity about the collaboration between federal, provincial, and municipal authorities in achieving this milestone. Initially, there was a discrepancy regarding whether the $1 billion funding was separate from the $8.8 billion pledged earlier; however, it was clarified later that the new funding is part of the larger agreement.
Notably, the City of Toronto has been allocated up to $1.5 billion to offset reduced development charges, while Ottawa is set to reduce charges by 54% in exchange for $478 million in infrastructure funds. Premier Doug Ford urged municipalities to further reduce charges to access the funding, promising additional support if needed.
Applications for the new funding stream will open on October 29, with project selections expected in the spring. The investment is expected to benefit numerous communities, as emphasized by Mississippi Mills Mayor Christa Lowry, who highlighted the readiness of many municipalities to grow and develop with the assistance provided.
The funding initiative aims to address economic uncertainties, including U.S. tariffs, by strengthening local economies and addressing infrastructure challenges that hinder housing development. AMO’s outgoing president, Robin Jones, commended the initiative, noting the significant impact on rural, small, and northern communities.
Additionally, the Ontario Big City Mayors group emphasized the need for stronger actions to combat homelessness and addiction issues in the province. The group proposed various measures, including the creation of a dedicated addictions ministry and expansion of treatment options, emphasizing the urgency to address these pressing social challenges.
The AMO conference, where these significant announcements were made, will continue until Wednesday, with Premier Doug Ford scheduled to deliver a keynote address on Monday morning.