Ontario Government Launches $8.8B Housing Initiative

The governments of Ontario and Ottawa will invest billions to help reduce municipal housing development fees, aiming to promote new construction across the province, Prime Minister Mark Carney and Premier Doug Ford announced on Monday.

Both the federal and provincial governments will contribute $4.4 billion each towards housing-related infrastructure over the next decade, Carney shared during a joint press conference in Etobicoke with Ford and Toronto Mayor Olivia Chow.

This agreement will cut development charges by half for three years, according to Carney. These charges are utilized by municipalities to fund infrastructure needed for housing, such as roads, sewers, and water services.

Experts have pointed out that these municipal fees have driven up homebuilding costs in recent years, making it increasingly difficult to create the much-needed housing supply-a sentiment echoed by Carney on Monday.

“They’ve been growing at an unsustainable rate, increasing the cost of every new home, compressing margins for builders, and they’ve been stalling new builds, stalling construction,” Carney said.

The bulk of the $8.8 billion funding is designed to assist municipalities in covering infrastructure expenses when they lower development charges; however, municipalities will also need to contribute towards these reductions.

Ford stated it’s now up to local governments to “step up.”

“You come to the table, and we’re going to give you the infrastructure you need and save taxpayers within your community a tremendous amount of money,” he said. “We can get more shovels in the ground across Ontario and keep the dream of home ownership alive.”

Ontario will collaborate with municipalities and partners to propose a list of infrastructure projects for approval.

This funding initiative is the first announced under the federal government’s Build Communities Strong Fund and aims at helping municipalities slash development fees by 50 percent over three years.

This deal follows HST exemption for new home buyers

The announcement comes after Ford’s government revealed plans in its recently presented budget to temporarily eliminate Harmonized Sales Tax (HST) for new home purchases. The 13-percent tax will be waived on homes valued up to $1 million from April 1, 2026 until March 31, 2027.

WATCH | Ontario housing minister on scrapping HST for new homes under $1M:

Ontario, feds agree to scrap sales tax on new homes under $1M for a year

Ontario is teaming up with Ottawa to remove sales tax for buyers of new homes worth less than $1 million. Ontarians could receive up to $130,000 in rebates during this one-year period, according to Ontario Housing Minister Rob Flack speaking on Power & Politics.

This is in addition to an existing HST rebate available for first-time buyers purchasing new homes valued at up to $1 million-an initiative previously announced by both provincial and federal governments last year.

The removal of HST combined with reduced development charges might lower a new home’s price tag by as much as $200,000, Carney informed reporters on Monday.

The Ford administration had set a goal back in 2022 of constructing an additional 1.5 million homes in Ontario by 2031 but has since softened that target amid indications it wouldn’t be met.

Recently Ottawa declared it would allocate $1.7 billion across provinces and territories aimed at enhancing housing supply according their needs.

Liberal MPP Adil Shamji criticized Ford’s commitment towards lowering development fees as being eight years overdue.

“Ford has always said he would get shovels in the ground. Unfortunately, the only thing he has shoveled is a crater that reflects the state of our housing sector,” he noted. “It’s astonishing that Ontario is the only province faring so poorly that it has to be rescued under the leadership of our prime minister.”.

Additionall. com//a{color: red}‘thediscountwillonlybringdevelopmentchargesbackto2018levels,”added Shamjiinastatementon Monday.”.

A Conservative MP Scott Aitchison stated Canadians have witnessed similar promises before.

“Once again this Liberal government is throwing out billions of taxpayer dollars with no guarantees of results or accountability regarding building homes,” he remarked.”This continues alongthe same linesand won’t produce tangible resultsor housesfor Canadians strugglingwithaffordability issues.”.

A Ricardo Tranjan fromthe Canadian Centrefor Policy Alternatives mentionedonthe news Fridaythatthere isn’t clarity about whataffordablehousingoptionsthese proposed taxcutswould actually provide
“We don’t know if they’ll deliverontheir ownstatedgoalof increasing supply. If they do , we’reunsure aboutwhat exactlywillbe builtwhere , atwhatprice, andforwhom ,” hesaid.” />

Billy Bishop airport takeoverandnew waterfront transit line

Durning Monday’snewsconference, Fordand Chowstood togetherafterrecent disagreementsabout Ford’splan totakecontrol over city-owned landat Billy Bishopairport.
Chowandcitycouncil votedlast week againstthe takeover plan.
However, Ford assertedlast weekthatthefederalgovernmentwhich overseesairportsaccordingtoa tripartiteagreementwiththecityand Toronto Port Authority, is supportiveof thestate’s proposal.[/content]. Carneylater toldreportersthatfederalofficialsare discussingthetakeoverwith thestatebut refrained fromdisclosing whether hesupported Ford’sinitiative.[/content].

Alongside Chow, Ford, and Carneymade announcementsregardingaprospective transitline servingwaterfront areas eastof Union Stationincluding Port Lands. Chowsaidthislinewouldbenefitover150000people.

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