The Ontario and Canadian governments have allocated $1 billion to support municipalities that do not impose development charges in constructing and revitalizing essential infrastructure. Todd McCarthy, acting minister of infrastructure for Ontario, along with Rob Flack, minister of municipal affairs and housing, and Jennifer McKelvie, parliamentary secretary to the federal minister of housing and infrastructure, revealed this initiative at the Association of Municipalities of Ontario (AMO) conference in Ottawa.
Both levels of government will each contribute $500 million towards establishing a new segment of the Municipal Housing Infrastructure Program (MHIP). This specific stream, designed for municipalities without development charges, aims to assist these communities in funding crucial infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
McCarthy expressed enthusiasm about the collaboration between federal and provincial authorities and municipalities to achieve tangible outcomes, emphasizing the positive impact of such partnerships. This funding supplement complements the $8.8 billion previously committed by the provincial and federal governments, as mentioned by McCarthy during discussions with CBC.
In earlier announcements, cities were informed of the requirement to cover 10% of new infrastructure costs to access the $8.8 billion funding pool. However, Flack assured that this condition would not apply to municipalities eligible for the new funding stream. The application process for this stream will commence on October 29, with project selections expected by spring.
Mississippi Mills Mayor Christa Lowry, who chairs the Rural Ontario Municipalities Association (ROMA), lauded the financial support, highlighting its potential to benefit numerous communities. With over 200 out of Ontario’s 444 municipalities not collecting development charges, Lowry emphasized the readiness of these areas for growth and development.
McCarthy emphasized that the funding stream aims to bolster local economies, particularly in light of the economic uncertainties stemming from U.S. tariffs. He underscored the challenges faced by municipalities in infrastructure development, citing repair backlogs, rising construction expenses, and limited funding options, especially for those not implementing development charges.
Robin Jones, outgoing president of AMO and mayor of Westport, Ontario, commended the initiative, recognizing the unique infrastructure pressures faced by rural, small, and northern communities. The funding is poised to have a significant positive impact on various regions across the province.
