Province announces $155M for LTC home construction this year
The Ontario government intends to invest $155 million this coming year to help fast-track the construction of new or redeveloped long-term care homes.
The funding, which was announced in last month's budget, is part of the government’s $6.4-billion plan to build 58,000 new and upgraded long-term care beds across the province.
“From escalating construction costs to high borrowing rates, our government understands the financial difficulties many long-term care operators and would-be builders are facing right now,” said Long-Term Care Minister Stan Cho. “Extending the construction funding subsidy top-up will help get more shovels in the ground on much-needed projects all across the province.”
The construction funding subsidy was first introduced in 2022. The money helped get shovels in the ground for 67 projects across the province, and resulted in the largest construction campaign the ministry has achieved in a single year. Based on this success, the province is providing the construction funding subsidy for a second year.
Eligible projects that are approved for construction by November 30, 2024 will receive an additional construction subsidy of up to $35 per bed per day for 25 years.
Eligible not-for-profit applicants will also be able to convert up to $15 of the supplemental funding into a construction grant payable at the start of construction, to help increase the project’s up-front equity and make it easier to secure financing.
The funding comes as part of a response to rising construction costs and long-term borrowing rates. Increases in both have made it difficult to get long-term care homes to the construction stage without additional supports.
“We owe the seniors who helped build this province a huge debt of gratitude and the dignity of modern, comfortable long-term care facilities,” said Finance Minister Peter Bethlenfalvy. “Now is the time for us to seize our once-in-a-generation opportunity to build the critical infrastructure that makes Ontario the best place to live, work and raise a family, which is exactly what Ontario’s 2024 Budget is all about.”