Non-Development Charge Municipalities Stream

Overview

The Non-Development Charge Municipalities Stream under the Municipal Housing Infrastructure Program (MHIP-Non-DC Stream) helps eligible municipalities build and renew critical infrastructure, such as roads, bridges and water systems that enable new housing and protect the existing housing supply.

The MHIP-Non-DC Stream is part of the $8.8 billion Canada-Ontario Partnership to Build with federal funding delivered through the Build Communities Strong Fund's Provincial and Territorial stream.

Eligibility

Applicants

Municipalities in Ontario, defined under the Municipal Act, 2001, that do not levy residential development charges (DCs) and do not have an active DC by-law in force for residential development as of March 30, 2026.

For any questions on the stream or eligibility, contact MHIP@ontario.ca.

Eligible projects

To be eligible for funding, projects must:

• enable new housing and/or preserve existing housing units that are otherwise compromised by health and safety risks
• demonstrate that they will create climate resiliency and adaptation
• be new construction, rehabilitation or expansion
• have not started construction
• have a clear start and end date
• start no later than September 30, 2027, and must be completed by March 31, 2031
• include a capital component and may also include pre-construction planning and design work (if expenditures for such work are no earlier than April 1, 2026)
• be in the process of, or completed, the design and planning phase
• meet all relevant provincial and federal regulatory requirements and policy direction, as applicable

Core infrastructure assets

Core infrastructure assets that are eligible for funding include:

• drinking water, for example:
  • treatment plants
  • reservoirs
  • local pipes, including the distribution system watermain and the applicant portion of service lines
  • pump stations
• wastewater, for example:
  • lagoon systems
  • pump stations
  • lift station
  • linear assets
  • treatment plants
  • storage tanks
  • collection systems
• stormwater, for example:
  • management facilities
  • linear assets, including conveyance piping, ditches and culverts
• roads and bridges (bridges include culverts with a span greater than 3 metres) that would maintain and/or enable housing

Joint projects

Joint projects between multiple eligible applicants, where each co-applicant contributes financially to the project, are permitted. As part of the application assessment, additional consideration will be given to joint projects.

Each individual applicant is allowed to submit 1 application. If an applicant chooses to submit a joint application with another applicant, the submission would be counted as their single application.

Funding limits for joint projects

Joint applications are subject to the same funding limits as single-applicant projects (see Funding Amounts). These limits do not increase with the number of applicants participating in a joint application.

Ineligible projects and costs

Ineligible projects include:

• projects that have started construction
• projects that are limited to routine, cyclical, preventative or regularly scheduled maintenance activities intended to maintain an asset in its existing condition
• privately-owned water systems (for example, year-round, non-applicant residential systems)

All costs associated with preparing the application are ineligible for funding and should not be included in the scope or financials of the application.

Additional eligibility and project conditions can be found in the Municipal Housing Infrastructure Program — Non-Development Charge (DC) Municipalities Stream program guidelines.

These guidelines are also available through the application portal on Transfer Payment Ontario (TPON).

Funding amounts

Project cost maximum

The total eligible cost will be a maximum of $20 million for all projects (such as single-applicant and joint projects). This includes provincial, federal and recipient contributions.

Standard cost sharing

For all projects, the costs will be shared between the:

• provincial government (a maximum of 40% of eligible costs, up to $8 million)
• federal government (a maximum 40% of eligible costs, up to $8 million)
• recipient (a minimum of 20% of eligible costs)

Joint applications

Joint applications are subject to the same funding limits as single-applicant projects.

• The maximum provincial contribution is 40% of eligible project costs (up to $8 million).
• The maximum federal contribution is 40% of eligible project costs (up to $8 million).

These limits do not increase with the number of applicants participating in a joint application.

The maximum total eligible costs for a project is $20 million.

Stacking

Eligible applicants can combine funding from other federal programs towards the recipient contribution, subject to the funding limits and stacking provisions of those. However, total funding from all federal government sources cannot exceed 100% of a project's eligible expenditures.

Provincial stacking will not be permitted, including the Building Faster Fund (BFF) and the Ontario Community Infrastructure Fund (OCIF). Municipalities cannot use funding from other provincial programs, including their available banked OCIF grants, for the required recipient portion in financing this project.

Funding decisions are assessed on a project-by-project basis, considering all confirmed sources of funding and applicable program requirements.

How to apply

The application process will be administered through Transfer Payment Ontario (TPON) and applications will open on October 29, 2026.

Learn about the detailed program guidelines and frequently asked questions for the Municipal Housing Infrastructure Program — Non-Development Charge (DC) Municipalities Stream, including:

• the application process
• project conditions
• assessment criteria
• financial matters

Selection process

We evaluate projects based on the following criteria:

• technical merit
• financial need
• project readiness
• ability to enable new housing units and/or preserve housing units
• use of modern technologies

We will assess and prioritize projects based on:

• program requirements
• applicant eligibility
• application completeness
• assessment criteria
• the overall demand of funds in the program

Following evaluation, projects will be shared with the federal government for approval. We expect to notify applicants of funding decisions in Spring 2027.

Contact us

For questions about the MHIP Non-Development Charge Municipalities Stream, email MHIP@ontario.ca.

For questions related to the TPON system, contact TPONCC@ontario.ca or visit Get funding from the Ontario government.