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Fraser pulls $357 million in funding from Ontario over affordable housing dispute

“I owe it to Canadians to ensure that their money, which Parliament has authorized for investments in new affordable housing, is actually spent on building more affordable housing,” Housing Minister Sean Fraser wrote in a letter to his Ontario counterpart.

Published May 6, 2024 at 9:02pm

Davis Legree
Davis Legree
Fraser pulls $357 million in funding from Ontario over affordable housing dispute
Minister of Housing, Infrastructure and Communities Sean Fraser holds a news conference in the National Press Theatre in Ottawa on Monday, Oct. 23, 2023. (Sean Kilpatrick/The Canadian Press)

The federal government is making good on its threat to withhold $357 million in affordable housing funding from Ontario, saying the province is not living up to commitments it made in a bilateral agreement.

Federal Housing Minister Sean Fraser had conditionally approved the funding in March but sought specifics on how the province planned to reach its agreed-upon commitment of building 19,660 affordable units by 2028.

In a letter written to Ontario Housing Minister Paul Calandra, Fraser said the province’s draft action plan would only achieve six per cent of the target by 2025, lagging far behind other provinces, some of which planned to meet 66 per cent of their respective quotas over the same time frame.

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