Governments Invest $1B to Support Municipalities Without Development Fees

The Ontario and Canadian governments are putting $1 billion into helping municipalities that don’t charge development fees build and upgrade important infrastructure.

Todd Mc Carthy, Ontario’s acting minister of infrastructure, Rob Flack, Ontario’s minister of municipal affairs and housing, and Jennifer Mc Kelvie, parliamentary secretary to the federal minister of housing and infrastructure made the announcement at the Association of Municipalities of Ontario (AMO) conference in Ottawa on Sunday.

Each level of government will contribute $500 million to create a new segment of the Municipal Housing Infrastructure Program (MHIP).

The “non-development charge municipalities stream” aims to assist these communities in funding infrastructure like bridges, roads, and waterways so they can support new housing developments while also preserving existing homes.

“It’s good news,” said Mc Carthy. “It demonstrates what happens when the federal and provincial governments, regardless of party, work with our municipalities to get things done.”

This new funding adds to the $8.8 billion that provincial and federal governments promised back in March, according to Mc Carthy speaking with CBC.

In June, it was revealed that cities would need to cover 10 percent of new infrastructure costs before accessing the previous $8.8 billion in funding. Flack confirmed with CBC that this requirement won’t apply for municipalities under the new stream.

The first round for applications for this new stream will start on Oct. 29, with projects set to be chosen in spring.

The funds will “go a long way to help a lot of communities,” stated Mississippi Mills Mayor Christa Lowry, chair of the Rural Ontario Municipalities Association (ROMA).

Lowry noted that more than 200 out of Ontario’s 444 municipalities do not collect development charges.

“When I think about the communities that ROMA represents across the province, we’re ready to grow,” she expressed. “We’ve got lots of really big plans, but getting there is the tricky part.”

Just under half of Ontario municipalities do not charge development fees, said Mississippi Mills, Ont., Mayor Christa Lowry, who chairs the Rural Ontario Municipalities Association. (Chris Rands/CBC)

Tariff uncertainty a factor

Mc Carthy mentioned that this funding stream is focused on boosting local economies during these uncertain times caused by U. S. tariffs.

The province has heard that one major obstacle for new housing developments is managing costs related to building and improving infrastructure, he shared at Sunday’s news conference.

“We know that many municipalities are dealing with repair backlogs, higher construction costs, and limited funding sources for critical infrastructure projects – especially when they do not implement development charges,” he added.

Robin Jones, AMO’s outgoing president as well as mayor of Westport, Ont., praised this initiative noting how challenging infrastructure pressures can be particularly for rural areas as well as smaller or northern communities.

Marianne Meed Ward, mayor of Burlington, Ont., also spoke during opening day at AMO conference in Ottawa where she leads the Ontario Big City Mayors group. (Nathan Fung/CBC)

Call for action on addictions

Lately on Sunday afternoon; members from the Ontario Big City Mayors (OBCM) group reiterated concerns they’ve voiced at past conferences: there’s an urgent need for stronger actions from the province regarding homelessness and addiction issues.

The group’s proposals include establishing a ministry focused solely on addiction matters while expanding treatment options; reviewing both Health Care Consent Act along with Mental Health Act; ultimately declaring an emergency state.

“We have to.. be courageous enough to say what we’re doing isn’t working,” emphasized Burlington Mayor Marianne Meed Ward who chairs OBCM.

“We’ve gotto try everythingand we’vegotta talk abouteverything.”

Meed Ward mentioned she’d meetwith provincial officials throughoutthe AMO conference which lasts until Wednesdayin Ottawa.

Ontario Premier Doug Ford is scheduledto speakat Mondaymorning’s sessionofthe conference.

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