The provincial government is giving municipalities more financial incentive to build.
Premier Doug Ford announced a new three-year $1.2 billion dollar program Monday that will give $400 million annually to municipalities that meet housing targets set by the province.
"In 2023, we want to achieve at least 110,000 new housing starts. It would be the first time in over three decades that Ontario surpassed the 100,000 threshold," said Ford. "From there we’ll ramp up over time until we’re on track to build at least 1.5 million homes."
The new program, dubbed the "Building Faster Fund" was unveiled during the premier's speech at the Association of Municipalities of Ontario's annual general meeting at RBC Place London. More than 1,500 members of the association are attending the four-day conference that began on Sunday.
To be eligible for the new funding, municipalities must reach 80 per cent of their annual building target each year.
"Municipalities that fail to reach at least 80 per cent won’t be eligible," said Ford. "But here’s the best part. Municipalities that exceed their target, that do better than 100 per cent, get a bonus."
The funding can be used toward housing-enabling infrastructure such as site servicing, roads, and public utilities, as well as other "shovel-ready projects" that support the home building goal.
The province will begin doling out the cash next year.
Ford also announced Monday he is expanding strong mayor powers to 21 more cities projected to have populations of 50,000 or more by 2031. This puts the total number of strong mayor cities at 50. The powers were extended to London and Windsor in June.
Strong mayor powers allow the mayor to appoint the municipality’s chief administrative officer, hire certain department heads and reorganize departments, veto bylaws that could interfere with provincial priorities, and propose the municipal budget. Councillors can override a mayoral veto with a two-thirds supermajority.
Among the new cities getting the powers are Sarnia, Welland, Peterborough, North Bay, Aurora, and Halton Hills.
The expansion of strong mayor powers will go into effect on October 31.