The City of London has received a significant provincial funding instalment of over $11.2 million, recognizing its success in meeting provincial housing construction targets. This marks the final payment from the Building Faster Fund, as the province pivots its strategy to directly confront the escalating housing affordability crisis with a new, long-term partnership. The $11,263,707 payment, announced at London City Hall on Monday morning, is part of the Ontario government’s initiative to reward municipalities that achieve at least 80 per cent of their designated housing targets. London qualified by breaking ground on 4,224 new homes in 2025, achieving 90 per cent of its annual target. While the Building Faster Fund, a three-year, up to $1.2 billion program, is concluding, the province and federal government are launching the $8.8 billion Canada-Ontario Partnership to Build. This new initiative focuses on reducing development charges, which Minister Flack argued have become “punitive” and contributed significantly to the affordability crisis. “Where did it come from? Because we needed this massive infrastructure to support housing growth, to support a population growth. They’ve become punitive in many cases,” Flack stated. London Mayor Josh Morgan highlighted the importance of provincial and federal support in backfilling potential losses from reduced development charges. This approach, he explained, will allow the city to fund vital infrastructure projects necessary for growth without increasing taxes for long-time residents. “We’re not going to be collecting as much development charges. The federal and provincial governments are going to backfill those lost development charges, so we can continue to build the infrastructure,” Mayor Morgan said. Morgan acknowledged that infrastructure work, such as the ongoing Bus Rapid Transit (BRT) construction along Wellington Road, can be challenging for commuters. However, he emphasized that the significant underground work, including upgrades to water, wastewater, and flood protection systems – which constitute over 80 per cent of the project’s cost – will yield substantial long-term benefits. He noted that some neighbourhoods have been seeking relief from flooded basements for decades. Mayor Morgan also confirmed he has been assured that developers will pass savings from the reduction in development charges onto new home buyers. Looking ahead, the province is exploring innovative funding mechanisms for infrastructure, including a pilot program for Municipal Service Corporations (MSCs). These entities could enable regional funding strategies and allow municipalities to borrow money over decades, rather than years, for both new and aging infrastructure projects. “Where municipalities don’t always come to the government to get money for infrastructure, because there’s only one taxpayer and there’s only so much money,” Flack explained. Further measures to enhance housing affordability include the removal of HST on new homes, a policy effective from April 1, 2026, to March 31, 2027, potentially saving homebuyers up to $130,000 on new constructions. The aim is to accelerate housing construction and ensure communities can support a growing population in a cost-effective manner.
