Ottawa and Ontario reach deal on funding for housing after months-long dispute

Ontario and Ottawa say they’ve reached a deal under the national housing strategy that will unlock $357 million in federal funding for the province.

The announcement comes after months of back and forth between the two levels of government over Ontario’s affordable housing targets.

Ottawa had said it would withhold some affordable housing funding from the province because it didn’t meet its targets and had an inadequate action plan. 

Instead, the federal government said it would bypass the province and give the money directly to municipalities.

Ontario, on the other hand, had argued the federal government wasn’t counting its progress properly.

A joint statement issued Tuesday morning says the deal involves an Ontario revised action plan that includes more data and insights into which housing projects benefitted from provincial investment.

“Canada and Ontario recognize that our collaboration is imperative to solving the housing crisis,” wrote Sean Fraser, Canada’s Minister of Housing, Infrastructure and Communities, and Paul Calandra, Ontario’s Minister of Municipal Affairs and Housing.

“Solving the housing crisis requires a Team Canada approach. We will continue to work together, along with our municipal partners, to make sure the people of Ontario have the homes they need.”