Explaining Ontario’s big bucks housing rollout
The Building Faster Fund rewards municipalities based on overall targets, but it’s complicated
Ontario government officials have been on a big cheque tour across the province in recent weeks, including stops in St. Catharines and Welland, to reward communities that hit provincial housing targets.
Over the past three weeks, Municipal Affairs and Housing Minister Paul Calandra, Premier Doug Ford and associates have made funding announcements in at least 16 municipalities with rewards ranging from $400,000 to $114 million.
“Obviously, you know why we’re here,” Calandra said at St. Catharines City Hall on Monday, standing next to a large novelty cheque from the Building Faster Fund.
“It’s a big, huge cheque — $2.3 million. That is a very, very good sum and it recognizes the fact that St. Catharines is doing what it takes to get shovels in the ground to build more homes for the people in your community.”
That cheque for St. Catharines was distinctly larger than the one handed out at Welland Civic Square 10 days earlier, despite Welland seeing more housing starts in 2023.
St. Catharines had 648 units begin construction last year, leading to the reward money for meeting 80 per cent of the province’s 2023 target for the city.
Welland, which surpassed its housing target by 276 per cent with 868 home starts, received $1.72 million.
St. Catharines wasn’t the only city that built fewer units than Welland but got more money.
Peterborough, which had 506 housing starts, received $1.88 million, while Caledon, which started 778 homes, was rewarded with $2.8 million.
Brantford got $3.06 million for 788 units under construction in 2023.
That is a very, very good sum and $2.3 million recognizes the fact that St. Catharines is doing what it takes to get shovels in the ground.
PAUL CALANDRA MUNICIPAL AFFAIRS AND HOUSING MINISTER
But what may seem like a random reward system is actually done through very specific calculations, according to the ministry.
A pot of money — $400 million a year for three years — is being distributed based on a municipality’s targets and overall contribution to the province’s goal of 1.5 million new homes by 2031.
Fifty municipalities were given yearly and overall targets and are eligible for reward money if they achieve at least 80 per cent of their target and bonus money if they exceed it.
If a municipality was given a target of 150,000 homes by 2031, for instance, it would represent 10 per cent of the 1.5million target. That municipality would be eligible for 10 per cent of the $400 million in annual funding, a $40-million sum.
The province’s 2023 goal was to see 110,000 units built.
St. Catharines’ share of that was supposed to be 807 units, representing 0.73 per cent of the 110,000 goal.
If St. Catharines had seen all of those units built, it would have received 0.73 per cent of the $400 million in funding — about $2.9 million. Because it reached 80 per cent of the target it received 80 per cent of the $2.9 million, for a $2.35-million cheque.
Welland, meanwhile, had a target of 315 units which represented 0.29 per cent of the provincial goal of 110,000. That made Welland eligible for 0.29 per cent of the $400 million in funding, or approximately $1.15 million.
Because Welland exceeded its target by 276 per cent and built 868 homes, it got a bonus of $573,333 based on further calculations, which was the maximum amount it could receive.
Niagara Falls, which hasn’t had a cheque presentation, was given a target of 587 units and built 401 in 2023, falling short of the 80 per cent threshold at 68 per cent.
Some politicians in Ontario have raised concerns about the target reward system because it distributes money based on actual construction starts of units, rather than the number of approvals given by cities. Approvals are something cities have control of — a developer not proceeding with a project because of financing or other reasons is out of a city’s hands.
According to the provincial housing tracker online, about half of the 50 municipalities given targets for 2023 haven’t met them.
Nineteen municipalities, including Welland, met or exceeded their targets and seven, including St. Catharines, are on track. Another 24, including Niagara Falls, were below the 80 per cent target.
Niagara municipalities’ targets by 2031 are 11,000 units in St. Catharines, 8,000 in Niagara Falls and 4,300 in Welland.