Ontario Proposes New Legislation and Funding for Housing and Infrastructure

The Government of Ontario introduced the Protect Ontario by Building Faster and Smarter Act, 2025 on May 12, along with an immediate $400 million increase in funding for housing and municipal infrastructure. According to the province, this brings the four-year combined investment in the Housing-Enabling Water Systems Fund (HEWSF) and Municipal Housing Infrastructure Program (MHIP) to nearly $2.3 billion.

The announcement is significant because it outlines several legislative and funding initiatives aimed at speeding up home building and infrastructure projects in collaboration with Ontario's municipalities. This information is relevant for communities tracking local development, housing supply, and infrastructure upgrades.

According to the Ministry of Municipal Affairs and Housing, the new legislation and related measures would make a number of changes. The government states that the legislation would

• simplify and standardize development charges with measures developed in consultation with municipalities,
• remove barriers for Canadian manufacturers to introduce new building materials and designs,
• streamline planning and delivery for communities near transit,
• apply consistent construction standards across Ontario municipalities,
• extend some provisions from the Building Transit Faster Act, 2020 to all provincial transit projects, and
• simplify procedures for development applications and municipal official plans.

The province reports it will also begin consultations with municipalities and stakeholders by fall 2025 to harmonize road building standards across Ontario's 444 municipalities.

Of the new $400 million in funding, the government states that $315 million is allocated for the HEWSF and $85 million for the MHIP. The Ministry of Municipal Affairs and Housing said that through the first two intakes of the HEWSF, nearly $1.3 billion has been allocated for water and wastewater infrastructure projects tied to the construction of approximately 600,000 homes. Program fact sheets referenced in the government release specify that MHIP funding includes $175 million for health and safety water upgrades and $400 million for infrastructure projects supporting up to 160,000 new homes.

Last year, the government provided $286.8 million through the Building Faster Fund to municipalities. It also dedicated $120 million for small, rural, and Northern municipalities through the HEWSF and MHIP, according to the province. The announcement states municipalities have access to $1 billion in loans for water infrastructure via the Infrastructure Ontario Loan Program.

The Ontario government noted statements of support from officials including the mayors of Vaughan and Mississauga, and from organizations such as the Association of Municipalities of Ontario, Ontario Home Builders’ Association, Building Industry and Land Development Association, and the Ontario Road Builders’ Association.

No details were provided regarding when the proposed legislation may be passed or implemented.