Ontario Investing More Than $1.8 Billion to Build More Housing

This new infrastructure funding promoting housing construction will help municipalities take the necessary measures

The Ontario government is investing more than $1.8 billion in infrastructure needed to build homes with the goal of building at least 1.5 million homes by 2031 . This envelope includes $1 billion in the new Municipal Infrastructure and Housing Program and an additional $625 million in the Water Network Fund for housing construction , for a total of $825 million. This new funding builds on provincial investments already in place to support housing and community-friendly infrastructure, including $1.2 billion in the Construction Acceleration Fund and an initial $200 million in the Construction Acceleration Fund. for water systems aimed at housing construction, and almost $2 billion, since 2021-2022, in the Ontario Community Infrastructure Fund.

“Our municipal partners have told me time and time again that a lack of infrastructure is one of the biggest obstacles to building housing,” said Premier Doug Ford. Today’s announcement of financial assistance of more than $1.8 billion for infrastructure to facilitate the construction of housing — in addition to the billions of dollars already devoted to infrastructure — will make it possible to multiply the projects so that the dream of homeownership becomes a reality in Ontario. »

The new $1 billion Municipal Infrastructure and Housing Program will support core infrastructure projects that help build housing in growing and developing communities, such as roads and water supply infrastructure. This funding will help municipalities put in place essential infrastructure to encourage the construction of housing throughout the province, favoring projects that allow the greatest number of homes to be built. More information on the program, including eligibility criteria and how to apply, will be communicated later this year.

“Our government is helping municipalities take the necessary steps more quickly to put in place the infrastructure essential to building more homes,” said Peter Bethlenfalvy, Minister of Finance. Our significant increase in investments allows us to build the roads, sewers and reservoirs needed more quickly to connect new homes to the electricity grid and help more Ontarians become homeowners . »

Ontario is more than quadrupling its investment from $200 million to $825 million over three years to support the Housing Construction Water Fund , which will help municipalities repair, modernize and improve the drinking water, wastewater and stormwater infrastructure necessary to build more homes. Announced for the first time in the 2023 Fall Economic Statement, this initiative provides for a period for municipalities to submit funding requests until April 19, 2024.

“Our government is making targeted investments in key infrastructure projects to ensure Ontario communities have the roads, bridges and water infrastructure needed to support our province’s growing population,” said Kinga Surma, Minister of Infrastructure. This additional envelope intended for the Fund for water networks aimed at the construction of housing will allow us to help a greater number of municipalities to repair, modernize and develop their infrastructure to encourage the construction of a greater number of housing units in their communities. »

Ontario is also supporting municipal housing efforts through its Construction Acceleration Fund , announced in August 2023, which provides up to $1.2 billion over three years. This Fund was designed to help municipalities finance the infrastructure necessary for their growth, in particular the development of sites and the construction of new roads. In addition, it includes an amount of $120 million, intended for small municipalities as well as rural and northern municipalities, in order to help them in the construction of infrastructure and to focus on projects that can be implemented. works more quickly.

“Many municipalities have told us that infrastructure is their biggest barrier to getting more housing started quickly, and that’s why we’re making this historic investment,” said Paul Calandra, Minister of Municipal Affairs. and Housing. We are removing barriers and providing every tool possible to our municipal partners to build more homes than ever before. »

The government is giving municipalities the resources they need to build more homes faster and tackle the housing crisis, which is depriving too many people, particularly young families and newcomers, of access to homeownership . Together with municipalities, Ontario will continue to make significant efforts to increase housing construction and support growing communities. However, the provincial government continues to ask the federal government to pay its fair share and help finance infrastructure projects promoting the construction of housing and the development of dynamic communities.

“Municipal infrastructure is the foundation of Ontario’s economy and people’s quality of life. From the water and sewer systems that build housing to the roads and bridges that connect our province, this critical funding will help support the province’s growth, said Colin Best, President of the Association of Municipalities of Ontario (AMO) and regional councilor for Halton. AMO applauds the government for this investment in Ontario’s prosperity and looks forward to working with the Ministry of Infrastructure to make the most of it. »

The government will provide further information on its plan to build critical infrastructure and keep costs low for families and businesses as part of its 2024 Economic Statement, released on March 26.

Quick facts

  • To support Ontario’s future, the government is investing more than $185 billion over more than 10 years in hospitals, long-term care homes, highways, public transit and other key elements of public infrastructure.
  • As announced in Ontario’s 2023 Fall Economic Statement, the government is proposing other solutions to help build critical infrastructure faster and smarter. These measures include the Ontario Infrastructure Bank and building more rental housing by eliminating the entire eight per cent provincial portion of the Harmonized Sales Tax (HST). .
  • Inaugurated in August 2023, the Construction Acceleration Fund is a three-year program designed to help municipalities achieve their objectives in building infrastructure favorable to housing and the community. Funding is provided to municipalities that meet at least 80 per cent of the province’s housing target for the year, with increased funding for municipalities that exceed that target.

Quotes

“We thank the provincial government for listening to municipalities and working with mayors to resolve the housing problems we face. Funding critical infrastructure, including water and wastewater, roads and bridges, is essential if we are to meet our housing construction goals. We look forward to continuing to work with government to build thriving communities across Ontario. »

– Marianne Meed WardMayor of Burlington and President of the Ontario Big City Mayors’ Association

“It’s simple: to meet Ontario’s ambitious housing goals, we need more infrastructure. The Ford government is putting this reality into practice and making the necessary investments in basic water and wastewater infrastructure to support community development. We applaud the government for this investment and for leading the way in building more housing in Ontario. »

– Dave DepencierPresident, Ontario Home Builders Association

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