Ontario and Canadian governments have jointly allocated $1 billion to aid municipalities that do not impose development charges in constructing and revamping vital infrastructure. This initiative was unveiled by Todd McCarthy, the acting minister of infrastructure for Ontario, Rob Flack, the minister of municipal affairs and housing for Ontario, and Jennifer McKelvie, the parliamentary secretary to the federal minister of housing and infrastructure, during the Association of Municipalities of Ontario (AMO) conference held in Ottawa.
Under the Municipal Housing Infrastructure Program (MHIP), each government level will contribute $500 million to establish the “non-development charge municipalities stream.” This funding will assist these communities in financing essential infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard the current housing stock.
McCarthy expressed enthusiasm, stating, “It’s good news and demonstrates the positive outcomes when federal and provincial governments collaborate with municipalities, regardless of political affiliation.” Initially, McCarthy indicated that the $1 billion was separate from the $8.8 billion pledged by the provincial and federal governments in March. However, his office later clarified that the new funding was part of the existing $8.8 billion agreement.
Notably, the Ontario government has already earmarked up to $1.5 billion for the City of Toronto to counterbalance the financial implications of reducing development charges. Similarly, the City of Ottawa intends to slash development charges by 54% to secure $478 million in infrastructure funding.
Premier Doug Ford urged municipalities to further reduce development charges, emphasizing the high demand for funding. The first round of applications for the new funding stream will open on Oct. 29, with project selections scheduled for spring.
Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), commended the funding, highlighting the readiness of numerous municipalities across Ontario to expand and develop but facing challenges in accessing resources.
McCarthy emphasized that the new funding stream aims to bolster local economies amid uncertainties stemming from U.S. tariffs. He underscored the financial strains hindering housing development due to escalating infrastructure costs, repair backlogs, and limited funding sources, especially in municipalities without development charges.
Robin Jones, outgoing president of AMO and mayor of Westport, Ontario, lauded the initiative, recognizing the unique infrastructure challenges faced by rural, small, and northern communities.
In a separate development, the Ontario Big City Mayors (OBCM) group reiterated concerns about addressing homelessness and addiction crises in the province. The group advocated for stronger actions, including the establishment of a dedicated ministry for addiction issues, expanding treatment options, and contemplating a state of emergency declaration.
Mayor Marianne Meed Ward of Burlington, Ontario, chair of the OBCM, emphasized the need for comprehensive strategies and discussions to combat these pressing issues. She announced plans to engage with provincial officials during the AMO conference in Ottawa.
The AMO conference, which commenced on Monday, will feature an address by Ontario Premier Doug Ford. The funding initiative reflects a concerted effort by governments to support municipalities in enhancing infrastructure and housing development across Ontario.