Federal and Ontario Governments Reach $357-Million Housing Agreement

The federal government and the Ontario government have successfully negotiated a $357-million agreement as part of the National Housing Strategy, ending a period of public disagreement over housing policy. The two governments had been at odds over the types of housing needed, with Ontario Premier Doug Ford firmly opposing a province-wide fourplex policy.

Federal Housing Minister Sean Fraser and Ontario Housing Minister Paul Calandra jointly announced the agreement, stating, “We are pleased to share that an agreement has been reached on a revised action plan from Ontario that will unlock $357 million of federal funding under the National Housing Strategy (NHS).”

The revised plan aligns more closely with Ontario’s unique approach to housing funding, which channels money through municipal service managers. “Ontario’s new measures better reflect Ontario’s funding delivery model, as the only jurisdiction which flows the funds through municipal service managers,” the statement detailed.

Under the new measures, Ontario will establish provincial supply targets with service managers, direct funding toward new projects, set annual goals, and implement comprehensive data collection and reporting mechanisms. This ensures a strategic and data-driven approach to addressing the province’s housing needs.

The agreement secures partial funding for Ontario under the decade-long National Housing Strategy. However, to ensure continued federal support, Ontario must submit a housing strategy action plan for 2025-2028 by December 31, 2024.

The push for provincewide zoning changes, such as allowing fourplexes without individual project approvals, remains a contentious issue. Premier Doug Ford has been vocal in his opposition, emphasizing the potential backlash from communities. “We are not going to go into communities and build four-storey or six-storey buildings beside residents,” Ford stated, highlighting the concerns about maintaining neighborhood character.

The debate over housing density and the balance between development and community impact continues to be a critical issue. As both levels of government work towards their housing goals, this new agreement marks a significant step forward in addressing Ontario’s housing challenges under the National Housing Strategy.