Ontario and Canadian governments have allocated $1 billion to assist municipalities that do not impose development charges in enhancing crucial infrastructure projects. The announcement was made by Todd McCarthy, acting minister of infrastructure for Ontario, Rob Flack, minister of municipal affairs and housing for Ontario, and Jennifer McKelvie, parliamentary secretary to the federal minister of housing and infrastructure, during the Association of Municipalities of Ontario (AMO) conference in Ottawa. Each government level will contribute $500 million to establish a new segment of the Municipal Housing Infrastructure Program (MHIP).
This specific stream, aimed at municipalities without development charges, will aid these communities in funding essential infrastructure like bridges, roads, and water systems to facilitate new housing construction and safeguard existing housing supply. McCarthy expressed his enthusiasm about the collaboration between federal and provincial governments and municipalities to achieve tangible results. Initially, it was stated that the $1 billion funding was separate from the $8.8 billion pledged in March, but it was later clarified that the new funding is part of the existing agreement.
The City of Toronto has already received up to $1.5 billion to offset reduced development charges, while Ottawa intends to slash development charges by 54% to access $478 million in infrastructure funding. Premier Doug Ford urged municipalities to further reduce development charges, promising additional funds if necessary, as demand surpasses available resources. Municipalities under the new stream will not be required to contribute 10% of infrastructure costs to access the $8.8 billion funding.
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), emphasized the significance of the funding for numerous communities, especially considering that over 200 of Ontario’s municipalities do not collect development charges. The funding aims to support these communities in their growth endeavors.
Furthermore, McCarthy highlighted that the funding stream aims to bolster local economies amid uncertainties surrounding U.S. tariffs. He noted that the cost of infrastructure development is a major obstacle in new housing construction, particularly for municipalities facing repair backlogs and limited funding sources. The move was praised by Robin Jones, outgoing president of AMO and mayor of Westport, Ontario, who acknowledged the challenges faced by rural, small, and northern communities in managing infrastructure pressures.
Additionally, the Ontario Big City Mayors (OBCM) group reiterated concerns about addressing the homelessness and addictions crisis, calling on the province to take more decisive actions. The group proposed creating a dedicated ministry for addictions issues, expanding treatment options, and reviewing relevant legislation to address the crisis effectively. Burlington Mayor Marianne Meed Ward, chair of the group, emphasized the need for comprehensive measures to combat these pressing issues.
The AMO conference, where these discussions took place, will continue until Wednesday in Ottawa, with Premier Doug Ford scheduled to address attendees on Monday morning.