The Governments of Canada and Ontario have announced a joint $1 billion investment aimed at helping municipalities build the infrastructure required to support new housing development. Announced on August 16, 2026, the funding targets Ontario municipalities that do not collect development charges and therefore have fewer financial resources available to fund infrastructure associated with community growth. The investment will be delivered through the new Non-Development Charge Municipalities Stream of the Canada-Ontario Partnership to Build.
The federal and provincial governments will each contribute $500 million toward the initiative. Funding will support critical housing-enabling infrastructure, including roads, bridges, water systems and related municipal projects. For builders and developers, these investments are significant because infrastructure capacity is often one of the fundamental requirements for opening new areas to residential construction. The program is also intended to help municipalities address aging infrastructure, construction costs and existing infrastructure backlogs while preparing communities for future growth.
The announcement could create new opportunities for Ontario’s residential construction sector, particularly in small, rural and northern communities where municipalities may not have access to development-charge revenue. The Ontario Home Builders’ Association welcomed the investment, emphasizing the importance of roads, bridges and water systems in unlocking land and enabling new housing. Applications for the new funding stream are scheduled to open to eligible municipalities on October 29, 2026, with additional application intakes expected later.
Keywords: Canada housing investment, Ontario housing, residential construction, home builders, housing development, municipal infrastructure, WPC Design, new home construction, Ontario builders, housing-enabling infrastructure
