The Ontario and Canadian governments have announced a joint investment of $1 billion to support municipalities that do not impose development charges in enhancing vital infrastructure projects. The news was delivered 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 Municipal Housing Infrastructure Program (MHIP), each government will contribute $500 million to establish a new funding stream specifically catered to municipalities that do not collect development charges. This initiative aims to assist these communities in funding essential infrastructure such as bridges, roads, and waterways to facilitate new housing developments and safeguard the existing housing supply.
McCarthy expressed optimism about the collaboration between federal, provincial, and municipal authorities, emphasizing the positive impact of such partnerships. Initially, there was a discrepancy regarding the $1 billion allocation, which McCarthy clarified as part of the larger $8.8 billion agreement previously announced by the provincial and federal governments.
The City of Toronto has already received up to $1.5 billion to offset reduced development charges, while Ottawa intends to slash development fees by 54% to secure $478 million in infrastructure funding. Premier Doug Ford encouraged municipalities to further reduce development charges, promising additional support if needed, as the demand for funding surpasses the available resources.
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 commended the initiative, highlighting the potential benefits for numerous communities across Ontario that do not impose development charges.
The funding stream aims to address the economic uncertainties brought by U.S. tariffs and alleviate the financial burdens hindering new housing developments. AMO’s outgoing president, Robin Jones, emphasized the significance of the funding in easing infrastructure pressures, particularly for rural and northern communities.
Additionally, the Ontario Big City Mayors group reiterated concerns about homelessness and addictions crises, calling for stronger provincial action. They proposed establishing a dedicated ministry for addictions issues, expanding treatment options, and declaring a state of emergency to address the escalating challenges.
Mayor Marianne Meed Ward of Burlington emphasized the need for comprehensive measures to tackle these crises, urging a bold and inclusive approach to finding effective solutions. The AMO conference, running until Wednesday in Ottawa, will feature discussions on various critical issues, with Premier Doug Ford scheduled to address attendees on Monday morning.
