The Ontario and Canadian governments have allocated $1 billion to assist municipalities that do not impose development charges in constructing and revitalizing vital infrastructure. Todd McCarthy, Ontario’s acting infrastructure minister, Rob Flack, Ontario’s municipal affairs and housing minister, and Jennifer McKelvie, parliamentary secretary to the federal housing and infrastructure minister, disclosed this during the Association of Municipalities of Ontario (AMO) conference in Ottawa.
Both levels of government will contribute $500 million to establish a new segment of the Municipal Housing Infrastructure Program (MHIP). The dedicated stream for municipalities that do not impose development charges will aid these communities in funding essential infrastructure like bridges, roads, and water systems to support new housing projects and preserve the existing housing stock.
McCarthy expressed optimism about the collaboration between federal, provincial governments, and municipalities in achieving common goals. This additional funding supplements the $8.8 billion previously committed by the provincial and federal governments, as announced in March.
In a recent development, it was revealed that cities would not be required to cover 10% of new infrastructure costs to access the $8.8 billion in funding, unlike the initial plan. The first round of applications for the new funding stream commences on October 29, with project selections expected in the spring.
Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA), emphasized the significance of the funding for over 200 municipalities in Ontario that do not collect development charges. She highlighted the readiness of these communities to expand but acknowledged the challenges in achieving their growth objectives.
Regarding the economic climate influenced by U.S. tariffs, McCarthy underscored that the funding initiative aims to bolster local economies amid uncertainties. The high costs associated with infrastructure development and upgrades present a major obstacle to housing development, particularly for municipalities facing repair backlogs and limited funding sources.
Robin Jones, outgoing president of AMO and Westport Mayor, commended the funding initiative, recognizing the unique infrastructure challenges faced by rural, small, and northern communities. Separately, the Ontario Big City Mayors (OBCM) group reiterated concerns about addressing homelessness and addiction crises, urging the province to take decisive actions.
Mayor Marianne Meed Ward of Burlington, chair of the OBCM, emphasized the need for comprehensive measures to tackle these pressing issues. She called for exploring new strategies and engaging in meaningful discussions to effectively address the challenges at hand. Meed Ward planned to engage with provincial officials during the AMO conference, where Ontario Premier Doug Ford is scheduled to deliver a keynote address on Monday.
