The Ontario and Canadian governments have jointly allocated $1 billion to support municipalities that do not impose development charges in enhancing and renewing essential 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 at the Association of Municipalities of Ontario (AMO) conference in Ottawa.
Under the new stream of the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million. This initiative, known as the “non-development charge municipalities stream,” aims to assist these communities in funding infrastructure projects like bridges, roads, and water systems to facilitate new housing construction and safeguard the existing housing stock.
McCarthy expressed enthusiasm about the collaboration between federal, provincial, and municipal authorities in achieving positive outcomes. Initially indicating that the $1 billion was additional to the previously pledged $8.8 billion, McCarthy later clarified that the new funding was part of the existing agreement.
The City of Toronto has been earmarked for up to $1.5 billion to offset the reduction in development charges, while Ottawa intends to slash development charges by 54% to access $478 million for infrastructure investments. Premier Doug Ford urged municipalities to further reduce development charges, acknowledging the high demand for funding.
The first round of applications for the funding stream is scheduled to open on October 29, with project selections expected by spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), expressed optimism about the financial assistance, highlighting the growth potential for communities.
The funding stream aims to bolster local economies amidst economic uncertainties like U.S. tariffs. McCarthy emphasized the challenges faced by municipalities in infrastructure development, particularly in the absence of development charges.
AMO’s outgoing president Robin Jones commended the initiative, emphasizing the unique infrastructure pressures faced by rural, small, and northern communities. The Ontario Big City Mayors (OBCM) group emphasized the need for stronger actions to address homelessness and addictions issues in the province.
The group proposed creating a dedicated ministry for addictions, expanding treatment options, and considering a state of emergency declaration. Mayor Marianne Meed Ward of Burlington urged bold steps to tackle these crises and planned discussions with provincial officials during the AMO conference.
Ontario Premier Doug Ford is scheduled to speak at the ongoing conference, which concludes on Wednesday in Ottawa.
