The governments of Ontario and Canada have jointly allocated $1 billion to support municipalities that do not impose development charges in enhancing and renewing 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 Municipal Housing Infrastructure Program (MHIP), each government level will contribute $500 million to establish a new funding stream tailored for municipalities that do not collect development charges. This initiative aims to finance critical infrastructure projects such as bridges, roads, and waterways to facilitate new housing construction and safeguard the existing housing inventory.
During the announcement, McCarthy expressed optimism about the collaboration between federal, provincial, and municipal authorities in achieving common goals. Initially, there was a misconception that the $1 billion funding was separate from the $8.8 billion commitment made earlier, but it was later clarified that the new funding is part of the existing agreement.
Notably, the City of Toronto has been earmarked to receive up to $1.5 billion to offset reduced development charges, while the City of Ottawa plans to slash development fees by 54% in exchange for $478 million in infrastructure funding.
Premier Doug Ford emphasized the high demand for funding among municipalities and encouraged further reductions in development charges, with a promise to supplement the fund if necessary. The application process 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), commended the funding allocation, highlighting that over 200 municipalities in Ontario do not impose development charges.
Addressing economic uncertainties stemming from U.S. tariffs, McCarthy underscored the funding stream’s role in bolstering local economies. He noted that inadequate infrastructure funding poses a significant challenge for many municipalities, especially those with repair backlogs and limited financial resources for critical projects.
The Ontario Big City Mayors (OBCM) group called for more decisive actions to address homelessness and addiction crises, urging the province to enhance treatment options and consider declaring a state of emergency. Mayor Marianne Meed Ward of Burlington emphasized the need for comprehensive approaches to tackle these pressing issues.
The AMO conference in Ottawa, where Premier Doug Ford is scheduled to speak, serves as a platform for discussions on critical municipal issues and collaborative efforts among government entities to support community development.