3 days ago
- Business
- Hamilton Spectator
Doug Ford calls out municipalities as housing money goes unspent
Ontario is having trouble giving money away for housing, but challenging times are making it hard to get.
As Premier Doug Ford presented Toronto with a $67.2 million cheque to help build new homes amid a shortage that has pushed prices higher, his housing minister lamented more municipalities aren't meeting the housing targets entitling them to cash.
'We're going to hand out some nice 'building faster fund' cheques, not as many and for as much this year as we did last year,' Rob Flack said Friday at city hall with Mayor Olivia Chow.
Toronto broke ground on 21,000 new homes last year, 88 per cent of its target.
'That's why we have the big cheque,' said Chow, who noted 'building is slowing' because of high interest rates, and higher costs that mean 'builders just can't afford to build.'
The $1.2 billion housing fund was established in 2023 to provide financial incentives for municipalities over three years to build homes. It's intended to pay for infrastructure like water lines, sewers, roads and sidewalks. Money is paid as a reward to municipalities reaching 80 per cent of the target set out by the province.
Ford promised in 2022 to build
1.5 million new homes by 2031
but the province is at half the pace needed to reach that number in the wake of the COVID-19 pandemic and the challenging business conditions that followed.
While an average of 150,000 new homes a year is needed over the decade, the Progressive Conservative government's spring budget projected
housing starts will fall this year to 71,800 — down from 74,600 in 2024.
To spur construction, Ford's PCs passed Bill 17, the Protect Ontario By Building Faster and Smarter Act, which streamlines the approval process and fees for homebuilders, allows municipalities to reduce development charges on developers and delays payment until new homes are occupied instead of when a building permit is issued.
As well, the legislation given royal assent this week extends the power to grant
minister's zoning orders
that override municipal bylaws, raising concerns among critics about preferential treatment for some builders.
Ford repeated his calls for the Bank of Canada to lower interest rates and said economic uncertainty caused by U.S. President Donald Trump's tariffs isn't helping the housing business.
'People are nervous if they're going to have a job or not.'
Ford also pointed the finger at mayors of some municipalities he did not name, but who he said 'absolutely refuse to build.'
'We are going to work with the ones that want to build,' the premier added. 'They're going to get the money. The other ones aren't.'
The premier reiterated that he would like to axe the provincial portion of the 13 per cent HST on new homes and has asked Prime Minister Mark Carney to scrap the federal portion.
'We just have to get everyone on the same page,' Ford said.
