The Ontario and Canadian governments have announced a joint investment of $1 billion to support municipalities that do not impose development charges in enhancing critical infrastructure projects. 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, unveiled the initiative at the Association of Municipalities of Ontario (AMO) conference in Ottawa. Each government will contribute $500 million to establish a new component of the Municipal Housing Infrastructure Program (MHIP). This specific funding stream, known as the “non-development charge municipalities stream,” aims to assist these communities in funding essential infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard existing housing stock.
During the announcement, McCarthy expressed positivity about the collaboration between federal and provincial governments and municipalities in achieving common goals. The initial statement by McCarthy indicated that the $1 billion allocation was separate from the $8.8 billion commitment made in March. However, his office later clarified that the new funding is part of the existing $8.8 billion agreement. Notably, the Ontario government has already earmarked up to $1.5 billion for Toronto to offset reduced development charges, while Ottawa plans to slash charges by 54% to receive $478 million in infrastructure support.
The premier of Ontario, Doug Ford, emphasized the high demand for funding, urging municipalities to further reduce development charges and promising additional contributions if needed. The application process for the new funding stream will commence on October 29, with project selections expected in the spring. Christa Lowry, Mayor of Mississippi Mills and chair of the Rural Ontario Municipalities Association (ROMA), expressed optimism about the impact of the funding on numerous communities across the province, highlighting the readiness of many municipalities to embark on growth initiatives.
The funding stream was described by McCarthy as a mechanism to bolster local economies amidst economic uncertainties, including potential U.S. tariffs. He underscored the challenges faced by municipalities in addressing repair backlogs, escalating construction costs, and limited funding options for critical infrastructure projects, particularly for those not implementing development charges. Robin Jones, outgoing president of AMO and Mayor of Westport, echoed support for the initiative, acknowledging the unique infrastructure pressures faced by rural, small, and northern communities.
In a related development, the Ontario Big City Mayors (OBCM) group reiterated their call for stronger provincial action to tackle homelessness and addictions crises. Their recommendations include establishing a dedicated ministry for addictions, expanding treatment options, and reviewing pertinent legislation to address the crisis effectively. Mayor Marianne Meed Ward of Burlington, chair of the OBCM, emphasized the need for comprehensive measures to address these pressing issues. As the AMO conference continues in Ottawa until Wednesday, discussions on these critical topics are anticipated to feature prominently. Ontario Premier Doug Ford is scheduled to address the conference on Monday morning.