Federal and Ontario invest $1B to help non‑DC municipalities build housing infrastructure

What’s happening

• Ontario and Canada created a Non‑Development Charge Municipalities Stream (Non‑DC Stream) to fund infrastructure in municipalities that do not levy development charges.
• Total funding: $1 billion ($500 million from Ontario’s Municipal Housing Infrastructure Program (MHIP) and $500 million from Canada’s Build Communities Strong Fund (BCSF)).

Who this affects

• Eligible municipalities in Ontario that have chosen not to levy development charges, especially small, rural, remote and northern communities.

What the money can pay for

• Housing‑enabling infrastructure such as roads, bridges, water and wastewater systems and other core servicing needed to support new homes and protect existing housing.

By the numbers (from the release)

• $1 billion total; $500M provincial + $500M federal.
• MHIP was increased to $4 billion in August 2025.
• Since MHIP launched in 2024, the program has supported about 800,000 new homes and protected about 375,000 existing homes.
• The release says related measures are saving up to $200,000 on the cost of new homes.

When and how to apply

• Applications for the Non‑DC Stream open for eligible municipalities on October 29, 2026. Additional intakes will be announced later.

Programs and related items named in the release

• Non‑Development Charge Municipalities Stream (Non‑DC Stream)
• Municipal Housing Infrastructure Program (MHIP)
• Build Communities Strong Fund (BCSF)
• Canada‑Ontario Partnership to Build
• The MHIP’s five streams: HEWSF, HECS, HSWS, Agriculture and Irrigation, Non‑DC Stream

Why it matters

• The funding targets municipalities that do not collect development charges so they can upgrade or add infrastructure needed to unlock housing growth, protect existing homes, and lower up‑front costs for new housing as described in the announcement.