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11.4 Child Care Infrastructure Policy

 

Children's Services Effective Date: February 1, 2026
Topic: Canada Wide Early Learning and Child Care system (CWELCC) Replaces: NEW
Subject: Child Care Infrastructure Funding Policy Policy No. F.11.4

 

POLICY

The Manitoulin-Sudbury District Services Board (DSB) is committed to expanding access to affordable, high-quality, inclusive licensed child care through strategic infrastructure investments. This policy establishes a clear, transparent, and accountable framework for the allocation and administration of child care infrastructure funding in alignment with provincial requirements, the Canada-Wide Early Learning and Child Care (CWELCC) system, and the DSB Directed Growth Plan.

PROCEDURE

Purpose

The purpose of this policy is to:

  • Guide the use of provincial and federal child care infrastructure funding, including Start-up Grants and the Canada–Ontario Early Learning and Child Care (ELCC) Infrastructure Fund;
  • Ensure infrastructure investments support directed growth, equity, access, and inclusion;
  • Establish eligibility, assessment, approval, and accountability requirements; and
  • Mitigate financial and operational risk to the service system.

Legislative and Policy Authority

This policy is guided by:

  • Child Care and Early Years Act, 2014 (CCEYA);
  • Ontario Regulation 137/15;
  • Ontario Child Care and Early Years Funding Guidelines (Chapter 5 – Infrastructure);
  • Accessibility for Ontarians with Disabilities Act, 2005;
  • Ontario Building Code;
  • DSB 2025–2030 Child Care and Early Years Service System Plan;
  • DSB Directed Growth Plan.

Scope

This policy applies to all licensed child care operators and license applicants seeking infrastructure funding administered by DSB for:

  • New space creation;
  • Renovations, retrofits, expansions, or additions;
  • Community-based, centre-based child care programs serving children aged 0–4;
  • Projects approved for enrolment in CWELCC.

Guiding Principles

Infrastructure funding decisions will be guided by the following principles:

  • Directed Growth: Investments align with DSB’s Directed Growth Plan and identified community need.
  • Equity and Inclusion: Priority is given to underserved communities, including rural and remote, low-income, Francophone, Indigenous, and families facing barriers to access.
  • Sustainability: Projects must demonstrate long-term operational and financial viability.
  • Transparency and Accountability: Funding decisions and oversight processes are clear, consistent, and documented.
  • Value for Money: Projects demonstrate cost effectiveness and responsible use of public funds.

Funding Streams

DSB administers the following infrastructure-related funding streams in accordance with provincial guidelines:

1 Start-up Grants

Start-up Grants support targeted space creation through renovations, retrofits, expansions, and equipment required to operationalize new licensed child care spaces.

2 ELCC Infrastructure Fund

The ELCC Infrastructure Fund supports larger-scale infrastructure projects that create new, licensed, community-based, not-for-profit child care spaces and improve inclusion for underserved communities.

Eligibility Criteria

To be eligible for infrastructure funding, applicants must:

  • Be a licensed child care operator and in good standing under the CCEYA, 2014;
  • Be eligible for and enrolled in the CWELCC system;
  • Align with DSB’s Directed Growth Plan and Service System Plan;
  • Propose projects that serve children aged 0–4 (excluding kindergarten and school-age programs);
  • Demonstrate financial and operational viability; and
  • Hold a Purchase of Service agreement (POS) and enter an Infrastructure Service Agreement with DSB.

Additional eligibility requirements specific to each funding stream are outlined in DSB application guidelines.

Eligible and Ineligible Expenses

Eligible and ineligible expenses shall strictly follow provincial funding guidelines. In general:

Eligible expenses may include:

  • Renovations, retrofits, additions, or expansions to community-based child care facilities;
  • Leasehold improvements;
  • Outdoor play space modifications required to meet licensing standards;
  • Non-consumable equipment, furnishings, and play-based materials;
  • Planning, design, and construction-related costs (where permitted).

Ineligible expenses include:

  • Purchase of land or buildings (unless explicitly permitted by the funding stream);
  • Debt servicing, operating expenses, or amortization;
  • Property taxes;
  • School-based child care facilities;
  • Home child care premises;
  • Programs serving kindergarten or school-aged children.

Application and Assessment Process

DSB will establish an equitable and transparent application process, which may include:

  • Written application submissions;
  • Demonstration of community need and alignment with underserved populations;
  • Budget and project timelines;
  • Evidence of readiness and licensing status;
  • Risk and feasibility assessment.

Applications will be assessed using standardized criteria, including:

  • Alignment with Access and Inclusion priorities;
  • Cost effectiveness;
  • Availability of operating funding;
  • Licensing and compliance history;
  • Current licensed versus operational capacity;
  • Long-term sustainability.

Approval and Service Agreements

Approved applicants must enter into a formal service agreement with DSB prior to the release of funds. Service agreements will include:

  • Approved scope and budget;
  • Timelines and milestones;
  • Reporting and audit requirements;
  • CWELCC participation and operating commitments (minimum seven years);
  • Claw-back and recovery provisions.

Funding is not considered committed until a fully executed agreement is in place.

Funding Flow and Project Management

DSB will flow infrastructure funding based on demonstrated cash flow needs and project milestones. Advance lump-sum payments will be minimized. All funded projects must be completed, and funds expended, within provincial timelines.

Accountability, Reporting, and Recovery

DSB will:

  • Track infrastructure funding separately from operating funding;
  • Require regular financial and project status reporting;
  • Conduct financial reconciliation and audits as required;
  • Recover unused or ineligible expenditures;
  • Take progressive corrective action where compliance issues arise.

Assets created or purchased with infrastructure funding may not be sold, leased, or disposed of without prior written approval from the Ministry of Education, where applicable.

Communications and Recognition

All public communications related to infrastructure funding must acknowledge the Province of Ontario and the Government of Canada, in accordance with provincial communications protocols and timelines.

Related Documents:

  • Directed Growth Plan
  • Child Care and Early Years Service System Plan
  • Infrastructure Guidelines
  • Purchase of Service Agreement 2026