The Ontario and Canadian governments have allocated $1 billion to support municipalities that do not impose development charges in enhancing and maintaining essential infrastructure. The announcement was made at the Association of Municipalities of Ontario (AMO) conference in Ottawa 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.
Under the new stream of the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million. This initiative, known as the “non-development charge municipalities stream,” aims to assist communities in funding infrastructure projects such as bridges, roads, and water systems to facilitate new housing construction and safeguard the existing housing stock.
McCarthy expressed optimism about the collaboration between federal, provincial, and municipal governments in achieving positive outcomes. Initially, there was confusion regarding whether the $1 billion was separate from the previously pledged $8.8 billion; however, it was clarified that the new funding is part of the existing agreement.
The City of Toronto has been granted up to $1.5 billion to mitigate the financial impact of reducing development charges, while the City of Ottawa plans to slash development charges by 54% to receive $478 million in infrastructure funding.
Premier Doug Ford emphasized the high demand for funding and encouraged municipalities to further reduce development charges, pledging additional support if needed. The application process for the new funding stream will commence on Oct. 29, with project selections expected in the spring.
Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), highlighted the importance of the funding for over 200 municipalities in Ontario that do not collect development charges. The funding is seen as a significant boost for these communities’ growth plans.
In response to the economic uncertainty caused by U.S. tariffs, McCarthy emphasized the importance of the funding stream in bolstering local economies. He noted that many municipalities face challenges in infrastructure development due to repair backlogs, escalating construction costs, and limited funding sources, especially in the absence of development charges.
The Ontario Big City Mayors (OBCM) group reiterated concerns about addressing homelessness and addiction crises in the province. They called for stronger actions, including the creation of a dedicated ministry for addictions, expanding treatment options, and potentially declaring a state of emergency.
The AMO conference is ongoing, with discussions on various critical issues, and Premier Doug Ford is scheduled to address the attendees on Monday morning.