The governments of Ontario and Canada have allocated $1 billion to support municipalities that do not impose development charges in constructing and revamping essential infrastructure. This initiative was unveiled by Todd McCarthy, acting minister of infrastructure for Ontario, Rob Flack, Ontario’s minister of municipal affairs and housing, and Jennifer McKelvie, parliamentary secretary to the federal minister of housing and infrastructure at 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 specific fund for municipalities that do not impose development charges. This fund aims to assist these communities in financing crucial infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
McCarthy expressed optimism about the collaboration between federal, provincial, and municipal governments, emphasizing the positive outcomes of their joint efforts. Initially, it was stated that the $1 billion funding was separate from the $8.8 billion previously committed by the governments in March. However, it was later clarified that the new funding is part of the existing $8.8 billion agreement.
Notably, the Ontario government has already designated up to $1.5 billion to support the City of Toronto in offsetting the financial repercussions of reducing development charges. Similarly, the City of Ottawa plans to slash development charges by 54% to secure $478 million in infrastructure funding.
Premier Doug Ford urged municipalities to further reduce development charges, acknowledging the high demand for 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), praised the funding initiative, highlighting the potential benefits for numerous communities in need. She emphasized the readiness of municipalities represented by ROMA to pursue growth opportunities supported by the allocated funds.
The funding stream is aimed at bolstering local economies, particularly in light of economic uncertainties stemming from U.S. tariffs, as highlighted by McCarthy. The initiative addresses the financial constraints faced by municipalities in undertaking infrastructure projects, especially in the absence of development charges.
The Ontario Big City Mayors (OBCM) group reiterated concerns regarding homelessness and addiction crises, advocating for stronger provincial actions. The group’s recommendations include the establishment of a dedicated ministry for addiction issues, expanding treatment options, and declaring a state of emergency to address the escalating crises.
Mayor Marianne Meed Ward of Burlington, chair of the OBCM, underscored the necessity for comprehensive strategies to combat these challenges, calling for proactive measures and constructive dialogue. The group is actively engaging with provincial authorities during the AMO conference to address critical issues affecting communities.
The AMO conference, ongoing until Wednesday in Ottawa, will feature an address by Ontario Premier Doug Ford on Monday morning.