OTTAWA — The Ontario government is expanding its efforts to accelerate housing construction and strengthen local economies with a $1.6 billion boost to the Municipal Housing Infrastructure Program (MHIP), nearly doubling the fund to $4 billion.
Premier Doug Ford made the announcement Monday at the Association of Municipalities of Ontario (AMO) conference, emphasizing the province’s commitment to supporting communities, keeping workers employed, and addressing housing affordability pressures.
“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,” Ford said. “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.”
Boosting Housing Supply and Local Infrastructure
Since its launch in 2024, the MHIP has been a central part of Ontario’s housing strategy. To date, the program has helped enable construction of 800,000 homes across the province, providing critical support to municipalities and Indigenous communities responsible for building the infrastructure that makes new housing possible.
The new funding builds on a $400 million increase announced in the 2025 provincial budget, and will provide additional resources for roads, bridges and water systems that underpin large-scale housing developments.
The program complements Ontario’s $1.2 billion Building Faster Fund, which rewards municipalities that meet or exceed annual housing targets. By pairing direct infrastructure investments with performance-based incentives, the government is attempting to both speed up development timelines and ensure that targets are met.
Confronting Economic Headwinds
Infrastructure Minister Kinga Surma said the latest funding will help shield Ontario’s economy from external pressures, including U.S. tariffs that have added uncertainty for construction industries.
“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,” Surma said. “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 province’s capital plan, described as the most ambitious in Ontario’s history, commits more than $200 billion to large-scale infrastructure over the coming decade, including $33 billion this year alone. The investments span transit, highways, hospitals, schools, and housing-enabling infrastructure.
Addressing Affordability Pressures
Rob Flack, Minister of Municipal Affairs and Housing, framed the investment as part of a broader effort to address housing affordability, particularly for first-time buyers and seniors who have struggled to access the market.
“For far too long, too many families, first-time home buyers, and seniors have been priced out of the market,” Flack said. “Our government recognizes that this must change. Today’s investment is part of our plan to use every tool in our toolbox to bring costs down and builds upon recent initiatives such as the Protect Ontario by Building Faster and Smarter Act.”
The legislation, passed earlier this year, is designed to streamline approvals and accelerate project timelines. Combined with targeted funding, the province hopes these measures will help reverse long-standing affordability challenges.
Municipal Leaders Welcome Investment
Municipal leaders at the AMO conference welcomed the expanded funding, highlighting both the economic and social benefits of infrastructure spending.
“Investments in municipal infrastructure have consistently proven to be the best way to protect local, provincial and national economies,” said Robin Jones, AMO President and Mayor of Westport. “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. We commend Premier Ford for these important investments.”
Broader Funding Commitments
The province’s latest announcement comes on the heels of other recent infrastructure investments, including $82 million for agricultural projects in Niagara Region and Leamington to support Ontario’s agri-food sector, and $400 million for 50 new water infrastructure projects tied to 86,000 new homes.
The MHIP itself is organized into four funding streams: the Housing-Enabling Core Servicing (HECS) Stream, the Health and Safety Water Stream (HSWS), the Agriculture and Irrigation Stream, and the Housing-Enabling Water Systems Fund (HEWSF), which was recently consolidated into the program.
Together, these streams are designed to support a range of local needs, from core servicing to agriculture, ensuring municipalities can unlock land for housing while safeguarding public health and economic growth.
Outlook
With Ontario facing ongoing housing shortages and affordability concerns, the government’s latest investment signals a determination to maintain momentum in housing construction despite global and domestic challenges.
The expanded MHIP, paired with complementary programs such as the Building Faster Fund and broader capital plan, reflects the province’s strategy of aligning infrastructure investment with housing supply targets.
As municipalities begin to access the new funding, the coming months will test how quickly these resources translate into shovels in the ground — and whether the province’s ambitious housing goals can be met.
