The decision sets aside the green light issued by cabinet in January 2021 and sends the $250-million project back to Ottawa for reconsideration.

The new facility will feature state-of-the-art amenities and target net zero emissions with its building design.

The Town of Whitchurch-Stouffville received $2.6 million, while the cities of Welland and Belleville received $1.7 million and $1.2 million respectively.

With 3,740 housing starts reported in 2023, the city was denied funding under the province’s new Building Faster Fund. It has more than 45,000 additional units under construction and undergoing site plan reviews.

Federal Energy and Natural Resources Minister Jonathan Wilkinson made the funding announcement Thursday, saying it will help work toward a net-zero economy.