Toronto/CMEDIA: An investment of $1 billion excluding levy development charges is being made by the governments of Ontario and Canada to help municipalities build more homes.
Being provided through a new Non-Development Charge Municipalities Stream (Non-DC Stream) made possible by the Canada-Ontario Partnership to Build, these funds will help eligible municipalities build and renew critical infrastructure, such as roads, bridges and water systems to protect the existing housing supply as well as lower home costs for families across the province.
“As we continue to navigate economic uncertainty and unwarranted U.S. tariffs, our government is protecting Ontario by investing in critical infrastructure so we can lower housing costs for Ontario families,” said Todd McCarthy, Acting Minister of Infrastructure. “With $1 billion in federal-provincial funding, the new Non-Development Charge Municipalities Stream will help municipalities deliver more homes, modernize aging infrastructure and build stronger communities.”
An historic agreement was signed in March 2026 by Canada and Ontario that included $8.8 billion in funding to build housing infrastructure worth tens of thousands of dollars to the cost of new homes.
Ontario is investing $500 million through the provincial Municipal Housing Infrastructure Program (MHIP) and Canada is investing $500 million through the new Canada-Ontario Partnership to Build program and through the federal Build Communities Strong Fund (BCSF) to help non-DC levying municipalities build critical infrastructure projects.
“When we initially announced the Development Charge Reduction Program, we made a commitment to non-DC levying municipalities that they too would be able to benefit from the Partnership to Build,” said Rob Flack, Minister of Municipal Affairs and Housing. “The Non-DC Stream will make this a reality, complementing existing programs and legislative reforms, further advancing our efforts to bring the dream of homeownership within reach for more Ontario families.”
Aso supporting the Development Charge Reduction Program, the Canada-Ontario Partnership to Build delivers funding to support housing and community infrastructure projects in municipalities development charges (DCs) for at least three years, as well as enabling Ontario’s expanded HST relief on new homes.
Together, these measures are saving ufp to $200,000 on the cost of new homes.
“Together, we’re building Ontario and Canada strong,” said the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada. “By partnering with Ontario, the federal government is helping speed up housing construction by lowering up front costs and investing in housing-enabling infrastructure projects — building strong, resilient communities that boost housing supply and drive economic opportunities.”
Applications for the Non-DC Stream will open for eligible municipalities on October 29, 2026, with additional intakes to be announced at a later date.
