Introduction

Ontario is reevaluating how it tracks and funds housing starts across municipalities amid concerns of undercounting, potentially costing cities millions in provincial funding. Here’s a detailed look at the issue:

Current Situation

• Ontario aims to build 1.5 million homes by 2031, with annual targets assigned to 50 municipalities.
• The Building Faster Fund rewards municipalities reaching 80% of their housing start targets set by the Canada Mortgage and Housing Corporation (CMHC).

Discrepancies and Losses

• Ontario’s Big City Mayors group claims discrepancies between CMHC data and local counts have led to significant funding losses. For instance, Oakville documented 2,701 housing starts in 2023, but CMHC reported only 1,752, costing the municipality potential funding.
• Ajax also missed out on $4 million due to CMHC missing 324 units in an apartment count, despite acknowledging the error.

CMHC Response and Government Actions

• CMHC defends its data accuracy, emphasizing site visits and verification prior to publication.
• Municipal Affairs and Housing Minister Paul Calandra is in discussions with CMHC and municipalities to improve data accuracy and evaluate concerns.
• There are proposals to include student residences, retirement homes, and transitional housing in housing targets.

Calls for Change

• Municipalities advocate for counting building permits instead of housing starts, citing issues like delayed construction starts due to market conditions.
• Marianne Meed Ward, Mayor of Burlington and chair of the big city mayors’ group, highlights the need to reward municipalities issuing permits rather than penalizing them for factors beyond their control.

Challenges and Reflections

• Some municipalities, like Guelph, question the fairness of the fund’s criteria, noting it may disadvantage communities needing more support for housing infrastructure.
• Premier Doug Ford’s government plans to reallocate unused funds from the Building Faster Fund to broader housing infrastructure needs.

Conclusion

The debate over how Ontario counts and funds housing starts reflects broader challenges in meeting housing targets and supporting municipal efforts. As discussions continue, stakeholders hope for a fairer and more effective system that accelerates housing development across the province.

Stay informed as developments unfold on this critical issue affecting housing affordability and development in Ontario.