The Ontario and Canadian governments have allocated $1 billion to assist municipalities that do not impose development charges in constructing and upgrading crucial infrastructure. Todd McCarthy, the acting minister of infrastructure in Ontario, along with Rob Flack, the minister of municipal affairs and housing, and Jennifer McKelvie, the parliamentary secretary to the federal minister of housing and infrastructure, revealed the initiative at the Association of Municipalities of Ontario (AMO) conference held in Ottawa.
Under the new stream of the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million. This funding, known as the “non-development charge municipalities stream,” is intended to support communities in funding infrastructure projects like bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
McCarthy expressed optimism about the collaboration between federal and provincial governments and municipalities in achieving common goals, emphasizing the positive outcomes of such partnerships. This additional funding complements the $8.8 billion previously pledged by the provincial and federal governments earlier in the year.
Unlike the requirement for cities to cover 10% of new infrastructure costs to access the previous funding, municipalities included in the new stream will not face this condition. The application process for the new stream will commence on October 29, with project selections expected in the spring.
Mississippi Mills Mayor Christa Lowry, who chairs the Rural Ontario Municipalities Association (ROMA), welcomed the funding, recognizing its significant impact on numerous communities. She highlighted that over 200 out of Ontario’s 444 municipalities do not collect development charges, indicating a readiness for growth but acknowledging the challenges in realizing ambitious plans.
McCarthy emphasized that the funding aims to bolster local economies amidst uncertainties such as U.S. tariffs, which pose economic challenges. He noted that many municipalities struggle with infrastructure maintenance, rising construction costs, and limited funding options for critical projects, particularly in the absence of development charges.
Robin Jones, the outgoing president of AMO and the mayor of Westport, Ontario, commended the initiative, emphasizing the unique infrastructure challenges faced by rural, small, and northern communities.