The Ontario and Canadian governments have committed $1 billion to support municipalities that do not impose development charges in enhancing and updating crucial infrastructure. The announcement was made 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 new Municipal Housing Infrastructure Program (MHIP), each government level will allocate $500 million. The initiative includes a specific stream for municipalities without development charges to fund essential infrastructure like bridges, roads, and water systems, facilitating new housing construction and safeguarding existing housing stock.
McCarthy expressed optimism about the collaborative effort between federal, provincial, and municipal authorities in achieving this milestone. The $1 billion funding, initially believed to be separate from the $8.8 billion pledged earlier, is now clarified to be part of the overall agreement.
Notably, the City of Toronto has been allocated up to $1.5 billion to offset reduced development charges, while the City of Ottawa plans to slash charges by 54% to access $478 million in infrastructure funds.
Premier Doug Ford urged municipalities to further reduce development charges, acknowledging the high demand for funding. The application intake for the new funding stream will commence on October 29, with project selections expected in the spring.
Mississippi Mills Mayor Christa Lowry praised the funding, emphasizing its significance for over 200 municipalities in Ontario that do not collect development charges. The funding aims to support communities in their growth endeavors.
The funding stream aligns with efforts to bolster local economies amid economic uncertainties such as U.S. tariffs, identified as a key challenge hindering housing development. AMO and the Ontario Big City Mayors group highlighted the importance of addressing infrastructure pressures, particularly in rural and northern regions.
Furthermore, the Ontario Big City Mayors group emphasized the urgency of addressing homelessness and addiction issues, advocating for stronger provincial actions, including the establishment of a dedicated addictions ministry and expanded treatment options.
Ontario Premier Doug Ford is expected to address ongoing concerns at the AMO conference, emphasizing the need for comprehensive solutions to address critical societal challenges.