Ajax Council voted Monday to apply for $122 million in grant funding through a federal-provincial program aimed at speeding up housing construction and easing the cost of development charges.
Council endorsed a staff recommendation on June 16 to submit the application under the Development Charge Reduction Program (DCRP), according to a statement from Mayor Shaun Collier.
The $8.8-billion program is funded jointly by the federal and provincial governments. It is designed to support municipal housing-enabling infrastructure, reduce development charges and accelerate the delivery of new housing.
If successful, the Town could receive upfront funding for five infrastructure projects, including work on Rossland Road, Harwood Avenue North and Hunt Street. Collier said the funding would arrive at a time when development charge revenues have been hit by slower-than-anticipated growth.
"I recognize that residents have many questions," Collier said in the statement. He cautioned against speculation about potential outcomes until the Town has formally engaged with the Province through the application process and has a clearer understanding of the program requirements, available options and potential implications.
The mayor noted that municipalities across Ontario are actively pursuing the same funding opportunity.
"An agreement of this magnitude will come with conditions and risks, including the potential reduction of development charges by up to 50 per cent and municipal contribution requirements," Collier said in the statement.
However, staff believe the overall financial impact on taxpayers will be low at this time, because the Town is already required to contribute toward the capital projects covered by the program, according to the statement.
Council has directed staff to proceed with the application and to negotiate an agreement described as responsible, financially prudent and in the best interests of taxpayers. The goal is to address funding gaps that could otherwise delay critical infrastructure needed to support new housing and serve existing residents.
No deal is final yet. Staff will return to Council in August with the proposed agreement and a detailed overview of the financial implications for Council's review and approval.
Collier said the current council has shown a willingness to explore innovative solutions and take meaningful steps to advance housing while continuing to protect the interests of existing residents and taxpayers.
