Canadian and Design Construction writer
The governments of Canada and Ontario are committing $1 billion to help municipalities that do not levy development charges build infrastructure needed to support new housing and community growth.
The funding is being provided through the new Non-Development Charge Municipalities Stream of the Canada-Ontario Partnership to Build.
Eligible municipalities can use the funding for critical infrastructure projects, including roads, bridges and water systems. Applications open Oct. 29, with additional intakes to be announced later.
Ontario and the federal government are each providing $500 million. Ontario’s share comes through the Municipal Housing Infrastructure Program, while Canada’s contribution is being provided through the provincial and territorial stream of the Build Communities Strong Fund, pending an agreement under the fund.
Municipalities that do not levy development charges can face challenges financing infrastructure required to accommodate growth. They also face aging infrastructure, high construction costs and significant infrastructure backlogs.
“OHBA is pleased to see Ontario and Canada make this significant investment in the critical infrastructure communities need to support housing and growth,” said Scott Andison, CEO of the Ontario Home Builders’ Association.
Andison said the dedicated funding recognizes that municipalities have different approaches to financing growth and will help communities unlock land and provide infrastructure needed for new housing.
“Investments in roads, bridges and water systems are essential to building new homes, protecting existing communities and supporting sustainable growth across Ontario,” he said.
Ontario Municipal Affairs and Housing Minister Rob Flack said the funding will help rural municipalities address infrastructure needs while preparing for growth.
“Across rural Ontario, building homes starts with reliable infrastructure, from sturdy bridges to roads built for tough Canadian winters,” Flack said. “For communities that do not collect development charges, this $1 billion stream delivers the targeted funding needed to clear backlogs, upgrade water systems and expand critical roads.”
The Non-DC Stream is part of the $8.8-billion Canada-Ontario Partnership to Build, announced in March.
The partnership also includes the Development Charge Reduction Program, which provides funding for housing-enabling and community infrastructure in municipalities that reduce development charges and maintain them at reduced levels for at least three years.
The partnership also supports Ontario’s expanded HST relief on new homes. Together, the measures are intended to reduce costs for homebuyers by up to $200,000 in certain jurisdictions.
The Build Communities Strong Fund is a $51-billion federal infrastructure program supporting projects related to economic growth, housing, sport, education, health, transit and climate adaptation.
The new funding is intended to help rural municipalities renew aging infrastructure and make the investments needed to support housing and economic growth.
“Rural Ontario is challenged with renewing aging infrastructure and building for growth can make it hard to keep pace,” Flack said. “This funding will help rural municipalities make the investments needed to support their communities today and prepare for the opportunities ahead.”
