Earlier this month, the federal government announced it had reached agreements with four Ontario communities to accelerate the construction of hundreds of housing units.

Administered through Canada Mortgage and Housing Corporation (CMHC), the Housing Accelerator Fund provides funding to municipal governments in exchange for introducing new policies that incentivize housing construction or removing barriers to the construction of new units.

In Belleville, for example, the local and federal governments agreed to terms that would lead to the construction of 259 homes over the next three years, and as many as 10,540 homes over the next decade.

The deal sees the city receive $10.5 million in funding in exchange for committing to eight initiatives, such as rezoning to allow four units as-of-right, promoting a greater range of housing types, and exploring higher density permissions in strategic areas.

Similar deals were struck in three other municipalities.

The City of Peterborough will receive $10.6 million to accelerate the construction of 356 homes over the next three years, and enable the construction of 2,531 others over the next decade. In exchange, the city will reducing parking requirements to lower development costs, enable higher-density housing, and introduce incentives to encourage the creation of a greater diversity of medium density housing in low-density residential neighbourhoods.

The City of North Bay will also receive $10.6 million to accelerate the construction of 337 homes over the next three years, and enable the construction of 4,188 others over the next decade. The city has agreed to amend zoning laws to allow four units as-of-right within the City’s urban area, and incentivize the development of affordable housing by reducing development fees.

Finally, the Town of Whitchurch-Stouffville will receive just over $8 million for the construction of 225 homes over the next three years, and 1,240 more over the next decade. The deal sees the town offer new grants and incentives for market and affordable housing, amend by-laws to allow for more medium and high-density developments, and implement a variety of efficiencies to issue streamline project approvals.

“Our government is committed to removing barriers and cutting red tape to enable housing development, and these partnerships with Ontario communities will do just that,” said Housing Minister Nathaniel Erskine-Smith.

As of September 2024, the federal government has committed $57.6 billion to support the creation of over 156,000 units and the repair of over 297,000 units through its National Housing Strategy.