Ontario Construction News staff writer
The Federation of Northern Ontario Municipalities says a new federal-provincial incentive program aimed at lowering home construction costs is unlikely to deliver meaningful benefits in much of the North.
The organization said it supports the recent Canada–Ontario partnership to boost housing supply and infrastructure investment, including funding tied to reducing municipal development charges. However, it warned the program’s design could leave many Northern communities at a disadvantage.
FONOM noted that while the program rewards municipalities that lower and maintain reduced development charges, many Northern municipalities do not levy such charges at all and therefore may not qualify for funding under the same criteria.
“We appreciate the commitment from both levels of government to address housing affordability,” said Dave Plourde. “However, many Northern municipalities simply do not have development charges to reduce, and at the same time face some of the highest costs in the province to build homes and infrastructure.”
According to the organization, communities across Northern Ontario contend with higher per-kilometre costs for essential infrastructure such as water, wastewater and roads, while also managing smaller tax bases and vast geographic areas.
“Growth still requires infrastructure—whether or not a municipality charges development fees,” Plourde said. “Without access to comparable funding tools, Northern communities risk being left behind in their ability to support new housing and attract investment.”
FONOM is calling on the Province of Ontario and the federal government to ensure housing and infrastructure programs are applied more equitably across regions. It is urging both levels of government to introduce complementary funding mechanisms so municipalities without development charges can still access housing-enabling infrastructure support.
“We are asking for fairness in how these programs are delivered,” Plourde said. “Municipalities that do not levy development charges should not be excluded from accessing housing-enabling infrastructure funding.”
The organization added that Northern communities are positioned to play a role in addressing the province’s housing shortage if given appropriate support.
“Northern communities are part of the solution,” Plourde said. “With the right tools and equitable support, we can continue to build homes, attract residents, and contribute to Ontario’s long-term growth.”
FONOM said it plans to continue working with provincial and federal partners on housing and infrastructure initiatives, noting recent budget measures include some positive steps for Northern Ontario.