To Build More Homes, Ontario Launching Building Faster Fund & Expanding Strong Mayor Powers

FCM-AMO
Written By

MY TAKE:Ontario Premier Doug Ford announced today (Aug. 21) the Building Homes Faster Fund at the 2023 Association of Municipalities of Ontario (AMO) Conference. A three-year, $1.2 billion fund that will provide funding for municipalities that achieve 80% of their housing pledge targets, and bonuses for those that achieve more than 100%. Part of the funding, 10% of dollars will be for rural and northern municipalities. The Premier also announced extending the Strong Mayor Powers to an additional 21 municipalities whose population is targeted to increase over 50,000 and who pledge to meet the Province's growth targets.More details to come from the Province on what targets will be measured, but it's critical that the targets are based on what municipalities can control -- the issuing of permits. It is also critical to note that municipalities do not control housing starts. We set policy and issue approvals. Developers build. They must continue with their permits once a municipality issues an approval. The PLACE Centre at Smart Prosperity Institute recently released its housing report, Working Together to Build 1.5 Million Homes in collaboration with Ontario’s Big City Mayors (OBCM) outlining the roles of every partner in the home building process.The City of Burlington has more than 3,600 units approved and waiting to be built. We welcome investment in Burlington.Minister of Municipal Affairs and Housing Steve Clark sent a follow-up letter to me on the Building Faster Fund. You can view a copy of it here: Letter from Minister Clark on Building Faster Fund_2023_to_Mayor Meed WardOntario's Big City Mayors also released a statement in response to the announcement of the new fund. Please click/tap the link for more.

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*Please see below a news release issued by the Province of Ontario.

August 21, 2023

Office of the Premier

Municipal Affairs and Housing

LONDON, ONT. — To reward municipalities that build homes, the Ontario government is launching the Building Faster Fund, a new three-year, $1.2 billion program that provides significant new funding based on performance against provincial housing targets. To ensure more municipalities have the tools needed to build homes and to expand eligibility for the Building Faster Fund, the province is also expanding strong mayor powers to municipalities projected to have populations of 50,000 or larger by 2031 that commit to meeting their provincial targets.
"With these new measures, we’re supporting municipalities and giving them the tools they need to build more homes faster to tackle the affordability crisis that’s pricing too many people, especially young families and newcomers, out of the dream of home ownership. We have two choices: We can sit back and ignore the crisis, or we can build more homes. Our government is choosing to build homes." -- Ontario Premier Doug Ford

The Building Faster Fund will provide $400 million in new annual funding for three years to municipalities that are on target to meet provincial housing targets by 2031. Municipalities that reach 80 per cent of their annual target each year will become eligible for funding based on their share of the overall goal of 1.5 million homes. Municipalities that exceed their target will receive a bonus on top of their allocation.Funding from the Building Faster Fund can be directed toward housing-enabling infrastructure and other related costs that support community growth. Eligible expenses will be determined following consultations between the province, the Association of Municipalities of Ontario, the City of Toronto and the Housing Supply Action Plan Implementation Team. A portion of the overall funding will also be allocated to single and lower tier municipalities that have not been assigned a housing target, including small, rural and northern communities, in order to address their unique needs, following municipal consultations.Ontario is also expanding strong mayor powers to 21 more municipalities that are projected to have populations of 50,000 by 2031 and whose heads of council are committed to a provincially assigned housing target. The expansion of strong mayor powers will take effect on October 31, 2023. The expansion is in addition to the 28 municipalities that already have strong mayor powers, having committed to targets through municipal housing pledges. Once a housing pledge is received from the head of council, these municipalities will also become eligible for and will have access to the Building Faster Fund.
"There is an urgent need to get more homes built quickly across Ontario. By providing additional financial resources to our municipal partners as well as strong mayor powers to help speed up the approvals process, our government is acting decisively to tackle Ontario’s housing supply crisis and build the homes our residents need and deserve." -- Minister of Municipal Affairs & Housing, the Hon. Steve Clark

QUICK FACTS:

  • The 29 municipalities assigned housing targets in 2022 and the 21 municipalities with newly assigned housing targets represent more than 88 per cent of the provincial target of 1.5 million homes.
  • Municipal housing pledges identify the tools and strategies that municipalities intend to use to achieve their housing targets as part of the ongoing work to increase housing supply. Municipalities with housing targets must submit a pledge to access the Building Faster Fund.
  • An eligible municipality would receive no funding if it is below 80 per cent of its annual assigned target. However, it would receive up to 100 per cent of allocated funding if it is on track to meet its target and could receive potential bonus funding if it exceeds that.
  • In 2022, Ontario saw the second-highest number of housing starts since 1988, with just over 96,000 new homes. Ontario also broke ground on nearly 15,000 new purpose-built rentals, the highest number ever on record.

ADDITIONAL RESOURCES:

RELATED LINKS:

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Ontario’s Big City Mayors Statement on Premier Ford’s Announcement of the Building Faster Fund
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