Ottawa taking Ontario out of affordable housing funding process

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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 CN Tower can be seen behind condo's in Toronto's Liberty Village community in Toronto, Ontario on Tuesday, April 25, 2017. THE CANADIAN PRESS/Cole Burston

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. 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.

“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.

“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.”

 

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