The governments of Ontario and Canada have allocated $1 billion to assist municipalities that do not impose development charges in enhancing and renewing vital infrastructure. This 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, during the Association of Municipalities of Ontario (AMO) conference in Ottawa.
Under the new Municipal Housing Infrastructure Program (MHIP) stream, each government level will contribute $500 million. This stream, dedicated to municipalities without development charges, aims to support the construction of essential infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
McCarthy expressed optimism about the collaboration between federal, provincial, and municipal governments in achieving this initiative. Initially, it was stated that the $1 billion was separate from the $8.8 billion commitment made in March, but later clarification confirmed that the new funding is part of the existing agreement.
Notably, the City of Toronto has been allocated up to $1.5 billion to offset reduced development charges, while the City of Ottawa plans to slash charges by 54% to receive $478 million for infrastructure projects. Premier Doug Ford encouraged municipalities to further reduce development charges, promising additional funding if needed, during a speech to municipal politicians.
Applications for the new funding stream will open on Oct. 29, with project selections expected in the spring. Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), emphasized the positive impact this funding will have on communities, especially those not collecting development charges.
The funding stream aims to bolster local economies amidst uncertainties like U.S. tariffs, addressing the financial challenges hindering housing development due to infrastructure costs. AMO’s outgoing president, Robin Jones, commended the initiative, acknowledging the infrastructure pressures faced by rural and northern communities.
Furthermore, the Ontario Big City Mayors group emphasized the province’s need to take decisive action on homelessness and addiction issues. They called for the creation of a dedicated ministry for addictions, expansion of treatment options, and a review of relevant legislation, including the declaration of a state of emergency.
The AMO conference, where these discussions took place, will continue in Ottawa until Wednesday, with Ontario Premier Doug Ford scheduled to address attendees on Monday morning.