The Ontario and Canadian governments have jointly allocated $1 billion to support municipalities that do not impose development charges in constructing and upgrading essential infrastructure. This significant investment was announced 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 conference in Ottawa.
Under the newly established Municipal Housing Infrastructure Program (MHIP), each government level will contribute $500 million. Specifically designed for municipalities without development charges, this initiative aims to assist these communities in funding crucial infrastructure projects such as bridges, roads, and water systems to facilitate new housing developments and safeguard the existing housing inventory.
This funding complements the $8.8 billion previously pledged by the provincial and federal governments in March, as highlighted by McCarthy in an interview with CBC. Notably, in a recent announcement, cities were required to contribute 10 percent of the infrastructure costs to access the $8.8 billion fund. However, Flack clarified to CBC that municipalities covered under the new MHIP stream would not be subject to this requirement.