Mark Carney and Doug Ford hand Toronto $1.5 billion to help build new homes

Ottawa and Queen’s Park announced this week that they will be funnelling up to $1.5 billion into Toronto across the next 10 years to supercharge the construction of new homes. The funding will help lower development fees in the city by 40 per cent for studio and one-bedroom condos. It will also slash fees by 60 per cent for detached and semi-detached houses as well as condos and rentals with two or more bedrooms.

Prime Minister Mark Carney, Premier Doug Ford and Mayor Olivia Chow first announced the reduction in development charges in late March, but details were hazy. This week’s news clarifies the amount of money being sent to Toronto and how much development charges will be lowered.

The reduction in fees should save roughly $83,000 on the construction of a detached or semi-detached home, the province says. It’s also projected to support the building of 44,000 new units, saving homebuilders $1.95 billion in total.

Municipal development fees are designed to help fund maintenance and new infrastructure. But developers have long complained about the charges, characterizing them as a burden that increases the cost of housing and stifles construction. Now, city council plans to spend this windfall on new TTC buses, upgrading Line 2 for more frequent service, and addressing congestion on St. Clair West between Keele and Old Weston Road.

“People should be able to afford a home in our city,” Mayor Chow said in a statement. “This announcement will make that easier while creating tens of thousands of good jobs in Toronto.”