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
B.C. serial killer Robert Pickton dead following prison attack
Convicted B.C. serial killer Robert Pickton, who preyed on women he lured from Vancouver's Downtown Eastside to his rural pig farm, has died.
2 children among 5 people hospitalized after head-on crash on Hwy. 417 in Ottawa's west end
Two young children and three adults were seriously injured in a major collision on Highway 417 between Palladium Drive and Carp Road in Ottawa's west end Friday afternoon.
DND moving 1,000 employees out of Ottawa office building due to safety concerns
The Department of National Defence is moving approximately 1,000 employees out of an office building in Ottawa's Lowertown neighbourhood, citing safety concerns for its employees.
Baby dead after being delivered via emergency C-section to woman who was in police custody
A newborn is dead after being delivered via emergency C-section to a woman in police custody.
Jennifer Lopez cancels summer tour: 'I am completely heartsick and devastated'
Jennifer Lopez has cancelled her 2024 North American tour, representatives for Live Nation confirmed to The Associated Press.
Fast food chain value deals ramp up in the United States: What does it mean for Canada?
After years of price increases and a decline in customers, fast food chains in the United States are competing with each other and offering value deals in hopes of bringing more foot traffic into their establishments.
This Calgary home has a giant tree in the middle, and it's for sale
There's a luxury 'tree home' for sale in Calgary.
Marian Robinson, mother of Michelle Obama, dies at 86
Marian Shields Robinson, the mother of Michelle Obama who moved with the first family to the White House when son-in-law Barack Obama was elected president, has died. She was 86.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.