Canada and Ontario Launch $1 Billion Infrastructure Stream for Non-Development Charge Municipalities

TORONTO, Ont. — The Governments of Canada and Ontario have unveiled a new $1 billion infrastructure allocation targeted specifically at municipalities that do not levy development charges, aiming to accelerate residential construction in rural and smaller urban communities.

The $1 Billion Funding Mechanics & Equal Cost-Share

The newly launched Non-Development Charge Municipalities Stream (Non-DC Stream) is established under the broader $8.8-billion Canada-Ontario Partnership to Build. The $1 billion funding commitment is split equally between the two orders of government:

• Provincial Contribution: $500 million committed through the Ontario Ministry of Infrastructure's Municipal Housing Infrastructure Program (MHIP).
• Federal Contribution: $500 million deployed through the federal Build Communities Strong Fund (BCSF).

The program directly finances core enabling infrastructure, including wastewater treatment plant upgrades, trunk water mains, stormwater management facilities, bridges, and local arterial connecting roads required to unlock shovel-ready subdivisions.

Constituent and Municipal Impact

Historically, municipalities without development charge (DC) bylaws have faced acute fiscal constraints when trying to service new land parcels, as the upfront capital costs often fell directly onto existing local property tax bases. By funding 100% of eligible trunk infrastructure upgrades in non-DC jurisdictions, the program allows smaller townships across Southwestern, Eastern, and Northern Ontario to approve new housing starts without increasing municipal debt ceilings or property tax burdens on current residents.

Application Timelines and Oversight

Applications for the Non-DC Stream officially open to eligible municipal governments on October 29, 2026. The joint oversight committee will prioritize projects that can demonstrate construction commencement within six months of grant approval and directly support multi-unit or infill residential development.