The Federation of Northern Ontario Municipalities (FONOM) says the recent announcement between the federal and provincial governments won’t benefit many Northern municipalities.

The group, which represents 110 cities, towns and municipalities in the North, says that while it supports efforts to increase housing supply and improve affordability, the current program design may unintentionally place many Northern municipalities at a disadvantage since many Northern communities do not levy development charges and therefore may not be positioned to benefit from this program in the same way.

“We appreciate the commitment from both levels of government to address housing affordability,” said FONOM President 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.”

FONOM noted that municipalities across Northern Ontario often experience significantly higher per-kilometre costs for essential infrastructure such as water, wastewater, and roads, while also working with smaller tax bases and greater geographic challenges.

“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.”

The group is calling on both the Province of Ontario and the federal government to ensure that housing and infrastructure programs are applied equitably across all regions.

“We are asking for fairness in how these programs are delivered,” said Plourde. “Municipalities that do not levy development charges should not be excluded from accessing housing-enabling infrastructure funding. There must be complementary funding mechanisms to ensure all communities can participate in building the housing our province needs.”

FONOM says it remains committed to working collaboratively with all levels of government to support economic development, improve infrastructure, and strengthen Northern communities.

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