ONTARIO SECURES $357 MILLION BOOST FROM OTTAWA IN AFFORDABLE HOUSING AGREEMENT
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On Tuesday, in what might be considered a breakthrough moment in Ontario’s housing crisis, the federal and provincial governments announced a $357-million agreement under Canada’s national housing strategy. The funding, which comes after months of intense negotiations, will help address critical housing shortages across the province.
Initially announced In 2018 as part of the National Housing Strategy’s bilateral agreement, the proposed funding was contingent on Ontario building 19,660 new affordable units by 2028 — a target the province had set for itself. When it became apparent Ontario would not meet its obligations, with only 1,184 new units projected by the end of 2024-2025, Ottawa threatened to withhold the funding. In March, Federal Housing Minister Sean Fraser voiced his frustration, declaring it “not realistic” for Ontario to meet 94 per cent of its target in the next three years. He insisted on a more feasible action plan, stating, “I cannot accept an action plan that demands funding for affordable housing that will never be built.”
Tuesday’s announcement, however, marks a turning point. Ontario has submitted a revised action plan addressing federal concerns and providing more comprehensive data and insights on current housing projects and funding. The new measures include establishing provincial supply targets, setting annual goals, directing funds toward new projects, and implementing detailed reporting mechanisms.
The accord, which goes beyond its monetary implications, underscores the need for a unified approach in tackling this pressing issue. The official statement emphasizes the importance of a collaborative effort, stating, “Solving the housing crisis requires a Team Canada approach.” Several housing organizations have advocated for such a collaborative approach as the housing crisis intensifies.
In April, following the release of the federal government’s plan, the Canadian Home Builders’ Association (CHBA) reiterated its call for all levels of government to unite in addressing the housing crisis.
“It is critical that the federal government continue to take action, but that provinces and municipalities take substantive action as well,” CHBA stated in a press release.
In February, the Toronto Regional Real Estate Board (TRREB) encouraged the provincial and federal governments to collaborate in implementing policies that better equip municipalities to build housing and access funding.
“We need to rapidly increase our supply and assist first-time home buyers.. Something we have long called for. All levels of government need to work together,” TRREB said in its 2024 Market Outlook and 2023 Year in Review report.
However, continued federal funding hinges on Ontario submitting another action plan for 2025 to 2028 by year’s end.
The joint release concluded, “We will continue to work together, along with our municipal partners, to make sure the people of Ontario have the homes they need.”
Story by: Financial Post
