Because the federal authorities cuts housing funding to Toronto, Vaughan, Ont. and Purple Deer, Alta., the cities’ mayors say they’re disenchanted however stay dedicated to constructing extra houses.
Housing Minister Gregor Robertson stated in a letter dated Friday that Toronto confirmed some progress, however as a result of the municipality isn’t allowing sixplexes citywide, its funding from the Housing Accelerator Fund (HAF) has been decreased from $471 million to $461 million.
The HAF launched in 2023 as a method for municipalities to make use of federal cash to hurry up housing development, whereas eradicating boundaries in areas like planning and growth approvals. It has a number of necessities, together with multi-unit development.
Toronto metropolis council voted final yr to solely enable sixplexes with out public consultations in sure wards
Mayor Olivia Chow’s workplace stated in an announcement she’s nonetheless dedicated to constructing extra houses, together with breaking floor on 28,000 rental items subsequent yr.
“Mayor Chow is main on delivering extra housing via zoning adjustments and constructing 1000’s of inexpensive houses,” an emailed assertion from Chow’s workplace reads.
“Mayor Chow will proceed to work with Minister Robertson and associate with the Federal Authorities to construct extra housing for individuals.”
That stance was echoed by Vaughan Mayor Steven Del Duca, who instructed World Information in an electronic mail that his metropolis would proceed working with the federal authorities after $7.4 million was reduce.
“I perceive the shared purpose now we have of delivering a lot wanted housing, however I’m disenchanted that the federal authorities didn’t seem to contemplate Vaughan’s management in lowering residential growth prices by almost 50 per cent, and our choice to streamline approvals by approving a ‘three strikes and also you’re in’ method to website plan approvals,” Del Duca wrote.
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Del Duca added Vaughan had met the “overwhelming majority” of commitments beneath the HAF and have been on monitor to ship the remaining initiatives.
Purple Deer additionally says it needs to work with the federal government, however instructed World Information on Friday it’s not giving again the cash simply but.
The CMHC stated in its choice on Friday that the $12 million in HAF funding initially signed in February 2025 was cancelled. As of July 21, 2025, it stated, the town was discovered non-compliant with a compulsory requirement of the HAF’s second funding spherical.
Based on metropolis council paperwork, that second spherical was conditional on Purple Deer adopting zoning guidelines to permit “4 items as of proper” on a single residential property.
The town council supported a movement in July to not transfer forward with these adjustments, a transfer the CMHC stated put them into non-compliance.
“I’m hopeful that that doesn’t imply an finish to this dialog, however moderately invitations us to submit an addendum or a brand new software that may us assist our wants and likewise assist them ship that cash to our communities,” stated Mayor Cindy Jefferies.
Jefferies instructed World Information that residents made it clear they didn’t wish to see zoning guidelines modified.
“I believe our frustration has been round, we’ve despatched a couple of letters … and haven’t had a response till this week and people letters would return to fairly a couple of months,” Jefferies stated. “So we’re simply wanting a dialog to clarify the scenario in our group and to say, you understand what, the appliance we put ahead for this funding, we are able to nonetheless ship on the items that we put in our software. We simply can’t handle to get blanket zoning via for our metropolis.”
Final week, Purple Deer voted in favour a movement that stated the HAF funding wouldn’t be returned till a “dialogue has occurred” with Robertson.
The three cities are the most recent to see their funding reduce or cancelled, with Tecumseh, Ont., shedding $3.2 million late final month.
Communities obtain funding via submitted motion plans, the CMHC instructed World Information, but when they aren’t adhered to there could be penalties akin to reductions or terminated.
There are greater than 200 communities receiving funding from the HAF, starting from small cities to huge cities.
—with recordsdata from World Information’ Adam MacVicar and Prisha Dev
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