The Ontario government has unveiled a significant investment initiative aimed at addressing critical water infrastructure needs across municipalities. Announced on Dec. 2, 2024, the province is allocating up to $1 billion in loans through the newly launched Housing-Enabling Water Infrastructure (HEWI) lending stream, a component of Infrastructure Ontario’s (IO) Loan Program.
The HEWI program seeks to provide municipalities with flexible financing options for essential drinking water, wastewater and stormwater projects. These projects are expected to play a pivotal role in supporting new housing developments by ensuring sufficient water infrastructure capacity. Municipalities can begin applying for loans under this program immediately.
Kinga Surma, Ontario’s Minister of Infrastructure, highlighted the importance of water infrastructure in meeting the province’s housing needs. “Communities across Ontario want to build new homes but often face challenges related to water capacity. This new financing option will help them overcome those barriers and move forward with these much-needed projects,” said Surma.
The HEWI program introduces several borrower-friendly features, including deferred interest payments during construction, extended repayment terms of up to 40 years and reduced administrative costs. These measures aim to ease the financial burden on municipalities and accelerate the implementation of critical infrastructure projects.
Complementing Existing Water Infrastructure Projects
The new initiative complements existing programs, such as the Housing-Enabling Water Systems Fund, further underscoring Ontario’s commitment to modernizing its water systems and enabling community growth. Infrastructure Ontario’s Loan Program has already supported over $22 billion in local infrastructure projects across the province, ranging from roads and bridges to energy-efficient upgrades and community facilities.
This announcement reflects Ontario’s strategic focus on fostering sustainable, resilient communities while addressing the growing demand for housing. By providing municipalities with the tools they need to expand and rehabilitate water infrastructure, the province aims to create healthier, more efficient and prosperous communities.
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Applications for the HEWI lending stream are now open, signaling a proactive step towards building the necessary infrastructure to support Ontario’s housing and development goals.
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