Ontario Allocates $1 Billion for Municipal Water Infrastructure Loans

The Ontario government has announced a plan to provide up to $1 billion in loans to municipalities for water infrastructure projects. This initiative is part of the Housing-Enabling Water Infrastructure (HEWI) lending stream under Infrastructure Ontario's Loan Program. The program aims to support the construction, expansion, and rehabilitation of drinking water, wastewater, and stormwater infrastructure, which are essential for building new homes.

Applications for the loans will be accepted starting December 2, 2024. The program is designed to offer flexible financing options to municipalities, including small, rural, and northern communities. These options include deferring interest payments during the construction phase and selecting longer repayment terms of up to 40 years.

The HEWI lending stream complements other provincial programs, such as the Housing-Enabling Water Systems Fund, and aligns with commitments outlined in the 2024 Ontario Budget to enhance loan flexibility for water infrastructure projects. The government states that this initiative will help municipalities overcome barriers related to water capacity, which is a significant factor in housing development.

Infrastructure Ontario's President and CEO, Michael Lindsay, noted that the lending program has previously supported infrastructure modernization in 335 municipalities across the province. The government is also investing nearly $2 billion in additional housing-enabling infrastructure through various funds to support the development of core infrastructure like roads and bridges necessary for housing projects.