Ontario and the federal government have unveiled a new funding stream specifically for municipalities that do not levy development charges. Announced August 16, 2026 by Ontario’s Ministry of Infrastructure, the Non-Development Charge Municipalities Stream (Non-DC Stream) will provide $1 billion to help these municipalities build and renew the infrastructure — roads, bridges, water and wastewater systems — that housing growth depends on.
Relevance to AMCTO
Many of Ontario's small, rural, and northern municipalities do not collect development charges, yet they carry the same infrastructure burden as those that do. This funding stream is intended to close that gap, recognizing that non-DC municipalities can still face significant infrastructure costs associated with growth even without access to that revenue tool.
The funding flows from the Canada-Ontario Partnership to Build, the broader $8.8 billion agreement signed in March 2026, and is delivered through two existing programs, split evenly:
- $500 million through Ontario's Municipal Housing Infrastructure Program (MHIP)
- $500 million through the federal Build Communities Strong Fund (BCSF)
The Non-DC Stream is intended to complement the Partnership's Development Charge Reduction Program, which funds municipalities that reduce and maintain DC reductions for at least three years. Together with the province's HST relief measures on new homes, the government frames these tools as reducing costs on new homes by up to $200,000.
Infrastructure as a Foundation for Housing Growth
The announcement highlights the important relationship between municipal infrastructure and housing supply. For municipalities experiencing growth, infrastructure such as roads, bridges, water and wastewater systems is essential to making additional housing development possible.
At the same time, municipalities must manage the costs of maintaining and renewing infrastructure that already serves existing residents. The new funding stream is particularly significant for small, rural, remote and Northern municipalities, where municipalities may have limited access to development charge revenues but still face substantial infrastructure needs.
Reaction from municipal and industry stakeholders is broadly positive. AMO President Robin Jones welcomed the investment, and regional voices — including NOMA, ROMA, FONOM, and OSUM — emphasized that all or nearly all of their member municipalities fall into the non-DC category, making this a significant and long-sought funding avenue for northern, rural, and small urban communities.
Applications opening in October
Eligible municipalities can apply to the Non-DC Stream beginning October 29, 2026, with additional intakes expected to be announced at a later date. For municipalities that do not levy development charges, the program represents a new opportunity to access dedicated funding for infrastructure that can support housing growth and address existing infrastructure needs.
What municipalities should know:
- Review upcoming infrastructure priorities that could support housing growth
- Assess potential projects involving roads, bridges, water, wastewater and other housing-enabling infrastructure
- Monitor program details ahead of the October 29 application opening
- Coordinate internally across planning, infrastructure, finance and housing teams to identify potential projects and funding opportunities
The Non-DC Stream reflects a broader policy direction from Ontario and Canada to connect infrastructure investment with housing supply while recognizing the different financial circumstances of municipalities across the province. We will continue to track program details as they are released and will update members through our advocacy channels as application guidelines become available.
This post is based on the Ministry of Infrastructure's August 16, 2026, news release.
For program updates, members should monitor Ministry of Infrastructure and Ministry of Municipal Affairs and Housing communications directly.