The governments of Ontario and Canada have allocated $1 billion to support municipalities that do not impose development charges in constructing and upgrading essential infrastructure. The announcement was made by Todd McCarthy, the acting minister of infrastructure for Ontario, along with 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 in Ottawa.
Under the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million to establish a new funding stream specifically designed for municipalities that do not collect development charges. This initiative aims to assist these communities in funding critical infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard the existing housing supply.
During the press conference, McCarthy expressed optimism about the collaboration between federal, provincial, and municipal governments in achieving this goal. Initially, he mentioned that the $1 billion funding was separate from the $8.8 billion previously pledged by the provincial and federal governments in March. However, his office later clarified that the new funding is 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 mitigate the financial impact of reducing development charges. Similarly, the City of Ottawa intends to slash development charges by 54% to receive $478 million in infrastructure funding.
Premier Doug Ford addressed municipal politicians, emphasizing the high demand for funding and encouraging further reductions in development charges. He pledged additional financial support if needed. The first round of applications for the new funding stream will open on October 29, with project selections expected in the spring.
Christa Lowry, the Mayor of Mississippi Mills and chair of the Rural Ontario Municipalities Association (ROMA), praised the funding initiative, highlighting the growth opportunities it presents for municipalities across the province. Lowry noted that out of Ontario’s 444 municipalities, over 200 do not impose development charges, emphasizing the readiness of these communities to expand their infrastructure.
The funding stream aims to bolster local economies amidst uncertainties surrounding U.S. tariffs, as mentioned by McCarthy. He emphasized that the cost of infrastructure development and upgrades remains a significant obstacle for new housing projects, particularly in municipalities without development charges.
Robin Jones, the outgoing president of AMO and the Mayor of Westport, Ontario, commended the government’s efforts, 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 called for stronger actions, including the creation of a dedicated ministry for addictions issues, expanded treatment options, and a review of relevant legislation.
Mayor Marianne Meed Ward of Burlington, Ontario, and chair of the OBCM emphasized the need for comprehensive measures to address these pressing challenges. She called for bold steps to tackle the crisis effectively and announced planned discussions with provincial officials during the AMO conference in Ottawa.
Ontario Premier Doug Ford is scheduled to deliver a keynote address at the ongoing AMO conference, which concludes on Wednesday.