Key Takeaways
- The Canadian federal government has reduced the amount of money allocated to Toronto under the Housing Accelerator Fund due to the city’s failure to meet its commitment to increase density.
- Toronto will receive $10 million less than expected, but will still get $461 million over four years.
- The decision was made after Toronto city council voted to limit sixplexes to only nine wards, rather than allowing them citywide.
- The federal government is encouraging local initiatives to build more homes faster and is monitoring the progress of 241 Canadian communities that have signed agreements.
- The City of Toronto and the federal government continue to have a strong partnership on housing, despite the funding cut.
Introduction to the Funding Cut
The Canadian federal government has announced a reduction in the amount of money allocated to Toronto under the Housing Accelerator Fund. The decision was made by Housing Minister Gregor Robertson, who stated that the city had failed to fulfill its pledge to increase density. Specifically, the city council voted to limit sixplexes to only nine wards, rather than allowing them citywide. As a result, Toronto will receive $10 million less than expected, but will still receive $461 million over four years.
The Reason Behind the Funding Cut
The Housing Accelerator Fund is a program designed to encourage local initiatives to build more homes faster. The federal government has signed agreements with 241 Canadian communities, including Toronto, which include commitments to increase density and build more affordable housing. However, Toronto’s city council failed to meet its commitment to allow sixplexes citywide without needing special approval. Instead, the council voted to limit sixplexes to only nine wards, which fell short of the federal government’s expectations. Minister Robertson stated that the goal of the fund is to ensure more affordable housing is built in Canada, and the federal government is encouraging that building by monitoring the progress of the communities that have signed agreements.
The City’s Response to the Funding Cut
Toronto Mayor Olivia Chow has stated that the city is continuing to do its part to build housing, despite the funding cut. The city has decided to allow sixplexes in nine wards, and has also decided not to charge development fees on builders who want to build sixplexes. Additionally, the city has announced plans to break ground on 28,000 rental units next year, with nearly 10,000 of them being affordable and rent-controlled homes. Mayor Chow has stated that the city will do what it can to remove barriers to building, including financial and zoning barriers.
Reactions from City Councillors and Housing Advocates
Not all city councillors agree with the decision to limit sixplexes to only nine wards. Councillor Stephen Holyday, who voted against sixplexes in his ward, has stated that he has no regrets, despite the fact that the decision means less funding for Toronto. Holyday believes that the city council has to retain its right to make decisions that reflect the needs of residents. However, housing advocate Colleen Bailey has stated that the minister should have taken a stronger stand, and that the funding cut may not be enough to send a message to other cities that the program is serious about meeting commitments.
The Importance of Meeting Commitments
The federal government is taking a strong stance on meeting commitments, and is monitoring the progress of the 241 Canadian communities that have signed agreements. Minister Robertson has stated that the integrity of the agreements is important, and that the federal government needs to ensure that communities are delivering on their commitments. The funding cut to Toronto is a clear example of the federal government’s commitment to meeting its goals, and serves as a reminder to other cities that they must also meet their commitments in order to receive funding.
Conclusion
In conclusion, the funding cut to Toronto under the Housing Accelerator Fund is a result of the city’s failure to meet its commitment to increase density. The federal government is taking a strong stance on meeting commitments, and is monitoring the progress of the communities that have signed agreements. While the city is continuing to do its part to build housing, the funding cut serves as a reminder that the federal government is serious about meeting its goals, and that cities must also meet their commitments in order to receive funding. The partnership between the City of Toronto and the federal government remains strong, and both parties are committed to building more affordable housing in Canada.
