Earlier this week, the governments of Canada and Ontario announced a $1 billion investment to help rural municipalities expand housing infrastructure to accommodate growth.
The funds are eligible for municipalities that do not levy development charges, meaning the municipality does not charge builders a fee when new homes or developments are constructed.
While larger Ontario municipalities often rely on those charges to finance growth-related infrastructure, many smaller and northern communities do not.
Eligible projects include roads, bridges and water systems. The funding is being provided through the $8.8-billion Canada-Ontario Partnership to Build, which was announced in March 2026.
“We were really excited when the government announced the Canada-Ontario Partnership to Build, but we didn’t hear anything about what would happen with the smaller northern and rural municipalities in Ontario,” said Rick Dumas, mayor of Marathon and president of the Northwestern Ontario Municipalities Association. “So this is great news. We’re looking forward to seeing some real investments in the communities of northwestern Ontario.”
Dumas said applications are expected to open toward the end of October, with municipalities eligible to receive up to $20 million each.
“This is a major milestone in regards to getting pipes in the ground, lights turned on, roads, sidewalks and developing the infrastructure we all need,” he said.
Ontario is contributing $500 million through the Municipal Housing Infrastructure Program, while the federal government is matching that investment with $500 million through the Build Communities Strong Fund’s provincial and territorial stream.
The funding can be used both to repair aging infrastructure and build new systems needed to accommodate future development.
“Rural Ontario is ready to grow, and our members have big plans for their communities. But the dual challenge of renewing aging infrastructure and building for growth can make it hard to keep pace. This funding will help rural municipalities make the investments needed to support their communities today and prepare for the opportunities ahead,” said Christa Lowry, Rural Ontario Municipal Association (ROMA) Chair.
According to a federal news release, the partnership works in tandem with Ontario’s expanded HST relief on new homes. Together, the initiatives are expected to cut homeownership costs by as much as $200,000 for buyers in certain parts of the province.
“This is about affordable housing. We want to attract not only the people who can fill the jobs we need filled in northwestern Ontario, but really bring ambassadors to the region who may be living in more expensive places in southern Ontario and want to have a better quality of life,” Dumas said.
