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The funding, which comes after months of intense negotiations, will help address the critical housing shortage across the province.
Published May 29, 2024 • 2 minutes reading time
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Construction on new homes in Oakville, Ontario. Photo by Peter J. Thompson/National Post Files
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On Tuesday, the Ontario and provincial governments announced a $357 million agreement as part of Canada's national housing strategy in what could be seen as a breakthrough in Ontario's housing crisis. The funds, which came after months of intense negotiations, are intended to help address the critical housing shortage across the province.
The funding was originally announced in 2018 as part of the bilateral agreement on the National Housing Strategy and was conditional on Ontario building 19,660 new affordable housing units by 2028 – a goal the province had set for itself. When it became clear Ontario would not meet its commitments, with only 1,184 new housing units planned by the end of 2024/25, Ottawa threatened to withhold funding. In March, federal Housing Minister Sean Fraser expressed his frustration, saying it was “unrealistic” that Ontario could achieve 94 per cent of its target in the next three years. He insisted on a more achievable action plan, stating: “I cannot accept an action plan that calls for funding for affordable housing that will never be built.”
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But Tuesday's announcement marks a turning point. Ontario has put forward a revised action plan that addresses the federal government's concerns and provides more comprehensive data and insight into current housing projects and their financing. New measures include setting supply targets for the province, establishing annual goals, allocating funds to new projects and implementing detailed reporting mechanisms.
The agreement, which goes beyond the financial implications, underscores the need for a unified approach to address this pressing issue. The official statement stresses the importance of a joint effort, stating, “Solving the housing crisis requires a Team Canada approach.” Several housing organizations have advocated for such a joint approach as the housing crisis worsens.
In April, following the release of the Canadian federal government's plan, the Canadian Home Builders' Association (CHBA) renewed its call for all levels of government to work together to address the housing crisis.
“It is critical that the federal government continues to take action, but that provinces and municipalities also take substantive action,” CHBA said in a press release.
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In February, the Toronto Regional Real Estate Board (TRREB) called on the provincial and federal governments to work together to implement policies that make it easier for municipalities to build housing and access finance.
“We need to rapidly increase supply and support first-time home buyers. This is something we have been calling for for a long time. All levels of government must work together,” TRREB said in its 2024 Market Outlook and 2023 Year in Review report.
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However, further federal funding is dependent on Ontario submitting another action plan for the period 2025-2028 by the end of the year.
The joint press release concludes: “We will continue to work with our municipal partners to ensure that Ontario residents have the housing they need.”
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