Canada, Ontario offer municipalities that don’t charge development fees $1B

The governments of Ontario and Canada announced a plan to invest $1 billion to help municipalities, that do not levy development charges, build more homes and renew infrastructure. The announcement was made on the first day of the Association of Municipalities of Ontario (AMO) conference in Ottawa.

The funding is being provided through a new Non-Development Charge Municipalities Stream (Non-DC Stream) made possible by the Canada-Ontario Partnership to Build. These funds will help eligible municipalities build and renew critical infrastructure, such as roads, bridges and water systems that enable new housing and protect the existing housing supply, while supporting lower home costs for families across the province.

“As we continue to navigate economic uncertainty and unwarranted U.S. tariffs, our government is protecting Ontario by investing in critical infrastructure so we can lower housing costs for Ontario families,” said Todd McCarthy, Acting Minister of Infrastructure. “With $1 billion in federal-provincial funding, the new Non-Development Charge Municipalities Stream will help municipalities deliver more homes, modernize aging infrastructure and build stronger communities.“

In March 2026, Canada and Ontario signed an historic agreement that included $8.8 billion in funding to build housing enabling infrastructure while lowering municipal development charges that can add tens of thousands of dollars to the cost of new homes. As part of this agreement, Canada and Ontario committed to reserve funding for municipalities that do not levy development charges, in recognition of their infrastructure needs and their decision to not use this revenue tool. Through the new Canada-Ontario Partnership to Build program, Ontario is investing $500 million through the provincial Municipal Housing Infrastructure Program (MHIP) and Canada is investing $500 million through the federal Build Communities Strong Fund (BCSF) to help non-DC levying municipalities build critical infrastructure projects.

“Together, we’re building Ontario and Canada strong. By partnering with Ontario, the federal government is helping speed up housing construction by lowering up front costs and investing in housing-enabling infrastructure projects — building strong, resilient communities that boost housing supply and drive economic opportunities,“ said Gregor Robertson, Minister of Housing and Infrastructure and Minister.

“Municipalities are on the front lines of building the infrastructure communities need to grow and prosper. This funding recognizes the unique pressures facing rural, small and northern communities and will help municipalities make critical investments that support growth, housing and resilient communities. AMO welcomes this investment and looks forward to continuing to work with provincial and federal partners.“ said Robin Jones, Association of Municipalities of Ontario (AMO) president.

Featured image: Todd McCarthy (centre), Ontario’s acting minister of infrastructure, and Jennifer McKelvie (left), parliamentary secretary to the federal minister of housing and infrastructure, announce the new funding stream for municipalities that don’t charge development fees on Aug. 16, the first day of the Association of Municipalities of Ontario conference.(Government of Ontario)