Federal Government Bypasses Ontario in Resolution of Dispute Over $357M for Affordable Housing

The federal government has made a bold move to sideline Ontario from a housing fund worth hundreds of millions of dollars, citing public tensions and accusations of failure to build. Housing Minister Sean Fraser informed Ontario’s counterpart, Paul Calandra, that the province would not receive the expected $357 million for affordable housing projects.

Instead, the federal government will directly allocate the funds to local service managers, bypassing Ontario. This decision means Ontario will not be reimbursed for money already spent and will have less control over future construction projects.

Fraser expressed disappointment in Ontario’s rejection of the conditional approval, stating that the federal government had made every effort to reach an agreement. Calandra, on the other hand, expressed no issue with the funds going directly to service managers, emphasizing that this has been the established practice for the past 35 years.

The feud between the federal government and Ontario escalated in March when Fraser accused the province of failing to meet its obligations under the National Housing Strategy. Ontario defended its position, stating that it had fulfilled its end of the agreement but needed to allocate funds for renovating existing units.

Despite the ongoing dispute, the federal government has decided to proceed with funding service managers directly, ensuring that the $357 million will still be used for affordable housing initiatives in Ontario. Calandra expressed optimism that the federal government’s decision would allow them to continue their successful work under the National Housing Strategy.