The Ontario and Canadian governments have allocated $1 billion to assist municipalities that do not impose development charges in enhancing and renewing crucial 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) stream, each government level will contribute $500 million. This funding will support municipalities without development charges in financing infrastructure projects like bridges, roads, and water systems to facilitate new housing construction and safeguard the existing housing stock.
McCarthy expressed optimism about the collaboration between federal, provincial governments, and municipalities in achieving tangible outcomes. Initially, it was stated that the $1 billion was separate from the $8.8 billion pledged in March, but later clarification revealed that the new funding is part of the existing $8.8 billion agreement.
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 development charges by 54% to secure $478 million in infrastructure funding. Premier Doug Ford urged municipalities to further reduce development charges to access the fund fully and assured additional funding if needed.
The application process for the new funding stream will commence on Oct. 29, with project selections expected in the spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), emphasized the positive impact the funding will have on communities without development charges, noting that over 200 municipalities in Ontario fall into this category.
The funding initiative aims to strengthen local economies amid tariff uncertainty, as highlighted by McCarthy. The high costs associated with infrastructure upgrades and construction have been identified as significant barriers to housing development, especially in municipalities without development charges.
The Ontario Big City Mayors (OBCM) group also emphasized the need for stronger action on homelessness and addiction issues, advocating for dedicated ministries, expanded treatment options, and a state of emergency declaration. Mayor Marianne Meed Ward of Burlington, Ont., reiterated the call for comprehensive measures to address these pressing challenges.
The conference in Ottawa, where Premier Doug Ford is scheduled to speak, serves as a platform for crucial discussions on municipal infrastructure, housing, and social issues.