Ontario and Canada commit $1B for infrastructure aid

The Ontario and Canadian governments have jointly allocated $1 billion to assist municipalities that do not impose development charges in enhancing and maintaining essential infrastructure. Todd McCarthy, the acting minister of infrastructure for Ontario, along with Rob Flack, the minister of municipal affairs and housing, and Jennifer McKelvie, parliamentary secretary to the federal minister of housing and infrastructure, revealed the initiative during the Association of Municipalities of Ontario conference in Ottawa. Under the new stream of the Municipal Housing Infrastructure Program (MHIP), each level of government will contribute $500 million. This specific funding, known as the “non-development charge municipalities stream,” aims to support these communities in financing crucial infrastructure such as bridges, roads, and water systems to facilitate new housing developments and safeguard the existing housing stock. The announced financial support is separate from the $8.8 billion commitment made by the provincial and federal governments earlier this year. Previously, cities were required to cover 10% of the costs for new infrastructure projects to access the $8.8 billion funding, as stated in a previous announcement in June. However, Flack clarified that municipalities under the newly introduced stream will not be subjected to this cost-sharing requirement.