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Talking Points
Ontario and the federal government have reached a deal to jointly invest $8.8 billion over 10 years in infrastructure projects across the province, with Canada’s share delivered through the Build Communities Strong Fund’s provincial-territorial stream.
The funding aims to support housing-enabling infrastructure, prioritizing municipalities that reduce and maintain lower development charges (DCs), which can significantly increase the cost of new homes. Municipalities are expected to support these DC reductions, while non-DC levying communities and other priority projects identified by Ontario will also be eligible for funding.
Ontario and Canada will agree on a list of priority municipalities where DCs are considered cost-prohibitive and where growth is needed. These municipalities must commit to substantial residential DC reductions—between 30% and 50%—for at least three years. Ontario will recognize communities that have already made such reductions if they maintain them for the required period.
- $8.8 billion in joint infrastructure funding over 10 years
- Priority given to municipalities reducing development charges
- Municipalities must propose ready-to-build projects
This agreement is intended to help address housing affordability and supply challenges by encouraging all levels of government to support lower costs for new homes and accelerate critical infrastructure development.
Ontario and the federal government have agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario with Canada’s share of the funding flowing through the Build Communities Strong Fund’s (BCSF) PT stream. Ontario and Canada agree that the goal of the initiative is to support housing-enabling infrastructure projects in Ontario, and that the funding will be 
prioritized for municipalities that reduce and maintain reductions on development charges (DCs), which can add hundreds of thousands of dollars to the cost of a new home. This new infrastructure funding will offset much of the financial impact of DC reductions on municipalities. However, municipalities will also be expected to support DC reductions, so that all three levels of government are supporting increased housing supply and affordability. Funding will also be made available for non-DC levying municipalities as well as for infrastructure projects prioritized by Ontario, and across a broader range of asset classes and recipients eligible
under the BCSF PT stream.
Canada and Ontario will also agree on a list of priority municipalities where DCs are seen as cost-prohibitive and where growth is essential to support Ontario’s future. For these municipalities, Ontario would require a commitment of substantial residential DC reductions (of between 30 to 50 percent) for a duration of three years. Ontario will work to recognize municipalities that have already reduced their residential DCs provided they maintain the reductions for a minimum three-year period.
Municipalities would work with Ontario to put forward a list of projects that this funding could be used against, which must be ready-to-build and meet any other requirements agreed to between Ontario and Canada. Ontario will also commit to not instituting other taxes that hinder the housing supply for a period of three years.