Feds to bypass Ontario government and give housing money directly to service managers
The federal government has kept its promise to withhold more than $350-million in Ontario funding earmarked for affordable housing and will send it directly to service managers after the province “failed to meet its obligations.”
The money was part of a bilateral housing agreement signed in 2018 and was meant to be used to reimburse the province for affordable housing investments.
Under this agreement, Ontario pledged to deliver about 19,660 affordable housing units. However, in March the federal government told the province their funding was in jeopardy.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
In a letter sent to Ontario Housing Minister Paul Calandra on March 21, officials noted the province was greatly behind in their goal, with an anticipated 1,184 new units by the end of 2024-2025.
“This leaves 94 per cent of the target to be achieved during the last three years of the agreement, which is not realistic,” Federal Housing Minister Sean Fraser wrote to his provincial counterpart at the time.
Fraser noted that unless the province provided a revised plan that shows how it intends to meet its targets, he would withhold $357 million in funding for affordable housing.
Between March 21 and April 30, the federal government says it offered the province conditional approval for the funding as long as some of the measures proposed in the revised action plan could be implemented by Sept. 30, 2024.
“The additional measures you have proposed include mandating annual supply targets for Service Managers, adopting a focus on creating new affordable housing units, and improving data collection and reporting related to these initiatives.
“These are good initiatives, but they are ones which Ontario made a similar commitment to realize last year. They have yet to materialize.”
Fraser said if the province could make some progress by the fall, they would get the money.
A month later, the feds say there has been no movement.
“Since our last exchange of letters, I have come to understand that a conditional approval was not acceptable to you and that Ontario is unwilling to provide further details as to how it will meet the target it agreed to,” Fraser wrote to Calandra. “I am disappointed that through your rejection of the conditional approval you have decided to forego the federal funding that would reimburse Ontario for investments it makes under our agreement.”
“I cannot accept an Action Plan that demands funding for affordable housing that will never be built.”
Speaking at the legislature on Monday, Calandra said he was pleased the government agrees that service managers should be the ones who administer the funding.
“We have been for weeks telling the federal governments that we fund housing through service managers, that the province directs its funds through service managers in cooperation with municipalities.”
However, the minister says he does not agree with Ottawa bypassing the province in the process. Previously, Calandra has called the decision “unacceptable” and said the affordable housing targets do not take the current economic landscape into account, nor the province’s work to repair and renovate units.
Service providers should not be impacted by the decision to withhold funding, the federal government said.
Fraser has said he hopes the province won’t pull funding in future years, but that he would meet with service providers to find a way to ensure funding delivery.
CTVNews.ca Top Stories
Court eases internet restrictions for Sask. man who had sex with a 15-year-old girl he met on Tinder
A Saskatchewan man who had a sexual encounter with a 15-year-old girl he met on Tinder successfully appealed to shorten release conditions barring him from online dating.
Stittsville residents seeking answers as bylaw cracks down on street basketball nets
Stittsville residents on Kearnsley Way are seeking answers after an unusual bylaw crackdown on Friday. Every home with a basketball net received a ticket instructing homeowners to remove their nets from the road.
'A horrible way to start the summer': 3 killed in serious boat crash on lake north of Kingston, Ont.
Three people were killed and five others were injured Saturday night following a boat crash on the Buck Bay area of Bobs Lake, north of Kingston, Ont., the Ontario Provincial Police (OPP) said.
Iran President Ebrahim Raisi still missing after helicopter accident in mountains
A helicopter carrying Iranian President Ebrahim Raisi, the country's foreign minister and other officials apparently crashed in the mountainous northwest reaches of Iran on Sunday.
What do we know so far about the mysterious crash of the helicopter carrying Iran's president?
The apparent crash of a helicopter carrying Iran's president and foreign minister on Sunday sent shock waves around the region.
Ex-partner charged with first-degree murder after 55-year-old woman killed in Montreal
Less than 24 hours after Montreal's 12th homicide investigation began, Montreal police confirmed that a 55-year-old woman's death in St. Michel is the island's 13th homicide. The woman's ex-spouse has been charged with first-degree murder.
Walmart, Costco refusing to sign grocery code of conduct 'untenable': industry minister
Industry Minister Francois-Philippe Champagne says it's 'untenable' for 'smaller players' like Walmart and Costco to delay signing on to the government- and industry-led grocery code of conduct, now that industry giant Loblaw has agreed to do so.
VIDEO Born without front legs, this dog has been inspiring the world for 3 years: Dresden farm owner
A sanctuary dedicated to animals with disabilities is celebrating the third birthday of one of its most popular residents.
Toxic drugs circulating in northeastern Ont., police say
Canada’s largest First Nations police service, the Nishnawbe Aski Police Service issued a community safety alert as extremely toxic drugs are likely circulating in many of the communities it serves.