TORONTO — The Ontario government is investing up to $1 billion in loans to provide municipalities with more financing options for water infrastructure projects that enable the construction of more homes. The new Housing-Enabling Water Infrastructure (HEWI) lending stream, under Infrastructure Ontario’s (IO) Loan Program, will support the construction, expansion and rehabilitation of drinking water, wastewater and stormwater infrastructure projects that enable new homes. Infrastructure Ontario will begin accepting applications from municipalities on December 2, 2024.
“We continue to hear from our municipal partners that one of the greatest barriers to building more homes is the need for new and expanded drinking water, wastewater and stormwater management facilities,” said Kinga Surma, Minister of Infrastructure. “I know there are communities across the province that want to get new homes built but need to expand their water capacity first. This new flexible financing option will help more municipalities get shovels in the ground on much-needed water infrastructure projects and more homes.”
The new IO HEWI lending stream complements existing provincial programs, such as the Housing-Enabling Water Systems Fund, and delivers on the government’s commitment outlined in the 2024 Ontario Budget to improve flexibility on loans for water infrastructure projects. The lending stream will provide municipalities, including small, rural and northern municipalities, with more flexible loan options during both the construction and repayment phases of the project. Municipalities will be able take advantage of flexible borrowing terms that allow them to defer interest payments during the construction phase until projects are substantially complete, select longer debenture repayment terms of up to 40 years, choose more flexible repayment terms and incur lower administration costs.
“The affordable, long-term financing available to municipalities through IO’s lending program has supported the modernization and renewal of public infrastructure in 335 municipalities across the province,” said Michael Lindsay, President and CEO, Infrastructure Ontario. “We look forward to working with our municipal partners to realize the potential of this lending stream, ultimately to enable the construction of more housing to benefit the people of Ontario.”
The government is also investing nearly $2 billion in housing-enabling infrastructure funding through the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Program, in addition to the provincial Building Faster Fund, to help municipalities deliver the core infrastructure needed – such as roads, bridges, drinking water and wastewater facilities – to build more homes across the province. This investment is part of the most ambitious capital plan in Ontario’s history, with more than $191 billion over the next decade to build and improve transit, highways, hospitals, schools, long-term care facilities and other critical public infrastructure, while strengthening the economy for the future.