Building a strong Canada starts with investing in the modern and reliable infrastructure that makes it possible to increase housing supply and create resilient communities.
The Governments of Canada and Ontario are investing $1 billion to help municipalities that do not levy development charges build more homes and support community growth. Through the new Non-Development Charge Municipalities Stream (Non-DC Stream) of the Canada-Ontario Partnership to Build, eligible municipalities will receive funding to build and renew critical infrastructure, including roads, bridges and water systems. These investments will help enable new housing development, support growth and protect Ontario's existing housing supply.
Municipalities that do not levy development charges often face challenges funding infrastructure projects because they do not have access to this revenue tool. At the same time, these municipalities face high construction costs, aging assets and significant infrastructure backlogs. Through the new Canada-Ontario Partnership to Build program, Ontario is investing $500 million through the provincial Municipal Housing Infrastructure Program (MHIP), while Canada is investing $500 million through the federal Build Communities Strong Fund (BCSF)'s Provincial and Territorial stream, pending an agreement under the Fund, to help municipalities that do not levy development charges build critical infrastructure projects.
The Non-DC Stream is made possible through the $8.8-billion Canada-Ontario Partnership to Build, announced in March 2026. The partnership also supports the Development Charge Reduction Program, which provides funding for housing-enabling and community infrastructure projects in municipalities that reduce and maintain development charges (DCs) at reduced levels for at least three years. The partnership also enables Ontario's expanded HST relief on new homes. Together, these measures are helping reduce costs for homebuyers by up to $200,000 in certain jurisdictions.
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.
The Build Communities Strong Fund is investing $51 billion in a wide range of infrastructure projects across the country that support economic prosperity, housing, sport, education, health, transit, and climate adaptation. The Fund is a cornerstone of the Government of Canada's plan to build the infrastructure needed to build Canada strong - today and for generations to come.
