Doug Ford says government will redistribute housing funding earmarked for municipalities who don't meet targets

Funding earmarked for Ontario municipalities who have not met their housing targets will soon be reinvested into other cities, Premier Doug Ford announced Monday.

Back in August, the premier announced a three-year, $1.2 billion fund that will provide up to $400 million per year to municipalities that have achieved certain housing targets set by the province.

Cities that have achieved 80 per cent or more of their annual target will be able to access the funding. Bonuses would be available for municipalities that exceed their target, Ford said at the time.

But for those unable to reach that 80 per cent mark, their pockets would remain empty.

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Each city’s progress is evaluated by comparing housing starts and residential units created that calendar year. However, in November, the Ontario Big Mayors Group asked Housing Minister Paul Calandra to base funding eligibility on building permits issued, as developers can be delayed in building due to a number of factors, including interest rates, supply-chain issues and labour shortages.

Calandra refused to change the eligibility, saying the government will ensure the money is used.

On Monday, Ford released new details on the program during a speech at the Rural Ontario Municipal Association’s annual conference, saying the government will take all money held back from municipalities who haven’t reached their targets and make it available widely for “housing-enabling infrastructure investments.”

“I know that in many cases a lack of infrastructure is partly to blame,” the premier said. “This approach will continue to reward municipalities that hit their targets while supporting much-needed new infrastructure in communities across the province.”

These funds can be applied for by any municipality, including those that have already received their designated Building Faster Fund (BFF) investments and those who have not met their housing targets.

The government said this will ensure municipalities get the support they need while also rewarding municipalities that meet or exceed their housing targets.

It’s unclear what the criteria is for this new subsection of funding.

The premier also announced a way for rural Ontario municipalities not assigned housing targets to access BFF through an application-based process. Ten per cent of the funding, about $120 million, has been reserved for rural and northern municipalities.

According to provincial data, last updated on Jan. 19, there were 31 municipalities, representing about 61 per cent of those with housing targets set by the government, that had not met their goals. Seven are “on track” and had met their goals, and 12 have exceeded their targets.

With files lfrom the Canadian Press