Ontario and Canadian governments have committed $1 billion to support municipalities that do not impose development charges in the construction and maintenance of essential infrastructure. The announcement was made at 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 stream of the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million. This funding will assist non-development charge municipalities in financing crucial infrastructure projects such as bridges, roads, and waterways to facilitate new housing developments and safeguard existing housing stock.
McCarthy expressed optimism about the collaboration between federal, provincial, and municipal governments in achieving tangible results. Initially, there was a misconception that the $1 billion was separate from the $8.8 billion pledged earlier in March, but it was clarified that the new funding is part of the existing agreement.
The City of Toronto has been allocated up to $1.5 billion to offset reduced development charges, while Ottawa plans to decrease charges by 54% to secure $478 million for infrastructure. Premier Doug Ford urged municipalities to further reduce development charges to access additional funding, emphasizing the need to support more projects.
The application intake for the new funding stream will begin on October 29, with project selections expected in the spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), highlighted the significance of the funding for over 200 municipalities that do not collect development charges.
The funding initiative aims to boost local economies amid uncertainties such as U.S. tariffs. McCarthy emphasized that infrastructure costs are a major hurdle in housing development, especially for municipalities facing financial constraints. The move was praised by Robin Jones, the outgoing president of AMO, acknowledging the challenges faced by rural and small communities.
In a separate development, the Ontario Big City Mayors (OBCM) group emphasized the urgency of addressing homelessness and addiction issues. They called for a dedicated ministry for addictions, expanded treatment options, and a review of relevant legislation to address the crisis effectively.
Burlington Mayor Marianne Meed Ward, chair of the OBCM, stressed the need for comprehensive action and open dialogue to combat the challenges. She indicated ongoing discussions with provincial officials during the AMO conference, where Premier Doug Ford is scheduled to address the attendees.
