Ontario Allocates Over $1.8 Billion for Expanding Housing Initiatives
The Ontario government has announced an investment exceeding $1.8 billion in housing-enabling infrastructure, aimed at facilitating the construction of at least 1.5 million homes by 2031. This funding includes $1 billion allocated for the new Municipal Housing Infrastructure Program, along with an additional $625 million for the Housing-Enabling Water Systems Fund, totaling $825 million. These funds supplement existing provincial investments in housing and community infrastructure, including the $1.2 billion Building Faster Fund, the initial $200 million investment in the Housing-Enabling Water Systems Fund, and nearly $2 billion allotted for the Ontario Community Infrastructure Fund since 2021–22.
“Time and time again, I’ve heard from our municipal partners that a lack of infrastructure is one of the biggest barriers to getting more homes built,” said Premier Doug Ford. “Today’s announcement of more than $1.8 billion in housing-enabling infrastructure funding, on top of the billions of dollars of infrastructure funding we’re already providing, will help get more shovels in the ground so we can keep the dream of homeownership alive in Ontario.”
The newly introduced $1 billion Municipal Housing Infrastructure Program will bolster essential infrastructure projects crucial for housing development in burgeoning communities, such as road and water systems. This financial support aims to expedite the implementation of vital infrastructure, laying the groundwork for increased housing supply across the province, with a focus on initiatives capable of facilitating the construction of a significant number of homes. Further details regarding the program, including eligibility criteria and application procedures, will be disclosed later this year.”
“Our government is helping municipalities get more shovels in the ground faster on the critical infrastructure needed to build more homes,” said Peter Bethlenfalvy, Minister of Finance. “By significantly growing our investments, we’re able to more quickly build the roads, sewers and reservoirs needed to connect new homes to the grid and help more Ontarians become homeowners.”
Ontario is significantly boosting its investment in the Housing-Enabling Water Systems Fund, increasing it from $200 million to $825 million over a span of three years. This expansion aims to aid municipalities in the repair, rehabilitation, and expansion of crucial drinking water, wastewater, and stormwater infrastructure essential for housing development. Initially introduced in the 2023 Fall Economic Statement, municipalities still have the opportunity to apply for the program until April 19, 2024.
“Our government is making targeted investments in key infrastructure projects to ensure Ontario’s communities have the roads, bridges, and water infrastructure needed to support our province’s growing population,” said Kinga Surma, Minister of Infrastructure. “With this additional funding for the Housing-Enabling Water Systems Fund, we are helping more municipalities repair, rehabilitate, and sustain their critical infrastructure so that more homes can be built for their communities.”
Ontario is further bolstering housing initiatives with its Building Faster Fund, introduced in August 2023. This fund earmarks up to $1.2 billion over three years to incentivize municipalities actively engaged in expanding housing availability. Geared towards covering expenses related to essential housing and community infrastructure, such as site servicing and new road construction, the fund aims to facilitate growth. Notably, $120 million within the Building Faster Fund is allocated for small, rural, and northern municipalities, aiding in the development of housing-enabling infrastructure and prioritizing projects geared towards accelerating the housing supply.
The government is equipping municipalities with the resources necessary to accelerate home construction, addressing the affordability crisis that has rendered homeownership unattainable for numerous individuals, particularly young families and newcomers. Through collaboration with municipalities, Ontario remains committed to fostering housing opportunities and bolstering expanding communities. The province reiterates its call for the federal government to contribute its fair portion towards funding housing-enabling infrastructure investments, further aiding vibrant, burgeoning communities.
The government will provide more information on its plan to build critical infrastructure, while keeping costs down for families and businesses in the 2024 Budget, to be released on March 26.
