The federal and Ontario governments have reached a deal that will unlock $357 million in federal funding for the province to ramp up its expansion of affordable housing projects.
What happened: As part of the deal, Ontario submitted a revised plan that puts the province on track to potentially reach the federally mandated target of 19,660 new affordable units by March 31, 2025 — a huge departure from its last proposal, which projected only 1,184 new units in that span.
- Earlier this year, the feds threatened to withhold cash from Ontario and send it directly to municipalities unless it could speed up the construction of affordable units.
- The feds claimed that Ontario was falling behind other provinces on targets set in 2018, delays that the province blamed on rising interest rates and building costs.
Why it matters: Building housing is expensive. Development costs in Ontario have risen 800% over the last two decades, while land costs have risen 900%. The funding gives the province a much better chance of hitting its lofty, but crucial, housing targets.—LA