The Ontario and Canadian governments have announced a joint investment of $1 billion to assist municipalities that do not impose development charges in enhancing and revitalizing essential infrastructure. 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, revealed the initiative during the Association of Municipalities of Ontario (AMO) conference in Ottawa.
Under the new Municipal Housing Infrastructure Program (MHIP) stream, each level of government will contribute $500 million to support municipalities that do not levy development charges. This funding will aid these communities in funding infrastructure projects such as bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
During the announcement, McCarthy expressed optimism about the collaboration between federal, provincial, and municipal entities. Initially, there was a misunderstanding regarding the funding being in addition to the previously pledged $8.8 billion; however, it was clarified that the $1 billion is part of the existing agreement.
The City of Toronto has already been allocated up to $1.5 billion to offset the impact of reduced development charges, while the City of Ottawa is set to reduce charges by 54% to receive $478 million in infrastructure funding. Premier Doug Ford encouraged municipalities to further reduce development charges to access additional funds if needed.
The application intake for the new funding stream will commence on October 29, with project selections expected in the spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), praised the funding, emphasizing the readiness of many communities to grow and develop.
McCarthy highlighted that the funding initiative aims to strengthen local economies amid tariff uncertainties and address barriers to housing development caused by infrastructure costs. AMO’s outgoing president, Robin Jones, and the mayor of Westport, also commended the move, emphasizing the challenges faced by rural and small communities regarding infrastructure pressures.
Additionally, the Ontario Big City Mayors (OBCM) group called for stronger action on addressing homelessness and addiction issues, urging the province to establish a dedicated ministry for addictions, expand treatment options, and consider declaring a state of emergency. Burlington Mayor Marianne Meed Ward, the OBCM chair, emphasized the need for comprehensive efforts to address these crises.
The AMO conference, where Premier Doug Ford is expected to speak, will continue in Ottawa until Wednesday.