Province increases housing infrastructure fund by $1.6B

OTTAWA – The Ontario government will add $1.6 billion in funding to an existing municipal housing program this year. Premier Doug Ford made the announcement at the annual Association of Municipalities of Ontario conference in Ottawa August 18.

The announcement adds to the previously announced $2.4 billion fund, which assists municipalities with funding expansion of municipal water systems and other infrastructure for building more housing.

“Working with our municipal partners, we’re going to keep lowering costs, investing in infrastructure and cutting red tape so we can keep the dream of homeownership alive in Ontario,” Ford said at AMO. “We’re making record investments in housing and infrastructure so we can keep workers on the job and help families across the province find a home that meets their needs and their budgets.”

The province claims the HMIP program has enabled the construction of 800,000 homes since it was launched in 2024.

Data from the Canada Mortgage and Housing Corporation reported housing starts in Ontario dropped by 25 per cent in the first half of 2025 to 27,368. This is far short of the yearly average of 150,000 homes built needed to reach Ford’s commitment to build 1.5 million homes in Ontario by 2031.

“This additional $1.6 billion investment in the Municipal Housing Infrastructure Program will help communities across Ontario build the infrastructure they need to unlock more housing and support economic growth,” said Minister of Infrastructure Kinga Surma. “In the face of unwarranted U.S. tariffs, our government is doubling down on our plan to build and investing more than $200 billion through our capital plan to protect Ontario by getting shovels in the ground faster on the projects that matter most.”

The funding increase coincides with changes to the program where water programs already run by the province were merged into the HMIP. “These investments will not just help to build homes, they will provide thousands of jobs in communities across the province and lay the foundation for long-term productivity,” said Robin Jones, AMO president and mayor of Westport.