Ontario and Federal Government Launch $1 Billion Housing Infrastructure Fund for Zero-Fee Cities

TORONTO, ON — Ontario Premier Doug Ford and federal infrastructure ministers unveiled a $1 billion municipal funding stream under the Municipal Housing Infrastructure Program (MHIP), allocating direct provincial-federal capital to build water mains, pumping stations, and arterial roads for new subdivisions.

Incentivizing Development Fee Freezes

The funding stream prioritizes municipalities that enact binding development charge freezes for purpose-built rental apartments and missing-middle townhome infill builds. The province projects the $1 billion allocation will unlock construction for over 65,000 shovel-ready residential homes across the Greater Golden Horseshoe and Southwestern Ontario.

Premier Ford affirmed that municipal red tape and excessive development fees drive up home prices for young families, ensuring builders who build affordable units receive state-backed infrastructure support.

Municipal Association Reactions

The Association of Municipalities of Ontario (AMO) welcomed the dedicated water utility grants, while requesting long-term formula funding for transit fleet maintenance.

Residential builder associations stated the fee exemptions reduce construction carrying costs by $25,000 per unit.

Application Intake Schedule

Municipal grant intake portals will open for applications through the Ontario Ministry of Infrastructure on September 15, 2026.