Ontario's housing minister, Rob Flack, recently addressed the Association of Municipalities of Ontario conference in Ottawa, indicating imminent changes to the province's housing fund designed for municipalities. The current fund, known as the Building Faster Fund, has been criticized for its approach to assessing municipalities' progress in building homes. Flack plans to "extend and improve" this fund, with additional details pending consultations with local mayors.
The existing fund rewards municipalities for meeting 80 percent or more of their assigned housing targets, providing financial support primarily for housing-enabling infrastructure. This financial assistance is often dramatized through ceremonial presentations featuring oversized novelty cheques from Flack or Premier Doug Ford. However, many municipalities argue that this criteria for reward—based on the timing of construction starts—unfairly penalizes them. While local governments handle the necessary approvals for housing projects, they have limited control over when builders initiate construction.
This fund is part of a broader strategy employed by the Ontario government to accelerate home building across the province. Ontario is currently struggling to meet the ambitious target set by Premier Doug Ford, which aims for the construction of 1.5 million new homes by 2031. The government's efforts to invigorate housing development include not only the Building Faster Fund but also various other initiatives aimed at streamlining the process and providing financial backing to municipalities.
In conjunction with his speech, Premier Doug Ford announced an additional investment of $1.6 billion towards the Municipal Housing Infrastructure Program during the conference. This funding is intended to aid municipalities in facilitating housing development, further underscoring the government's commitment to address the housing crisis in Ontario.
As discussions around the Building Faster Fund continue, the Ontario government aims to refine its approach to ensure that municipalities are not unfairly assessed based on factors beyond their control. The consultation process with mayors promises to be a crucial step in forming a more equitable framework that recognizes the challenges faced by municipalities in promoting housing construction.
