Guelph receives $4.68 million ‘reward’ for housing starts in 2023

Having achieved most of its new housing target for last year, the provincial government delivered a $4.68 million ‘reward’ to the City of Guelph on Thursday morning.

Those funds are to be put toward the cost of infrastructure needed to support the creation of new housing.

“It’s a reflection of the extraordinary work the mayor is doing and the entire team here at the City of Guelph is doing to help us meet our goal of building 1.5 million homes across the province of Ontario,” said Paul Calandra, Minister of Municipal Affairs and Housing, during the announcement at city hall.

“If we are to meet our housing targets of 1.5 million new homes, we are going to have to put infrastructure in the ground to allow communities … to actually get those homes built.”

He went on to credit Mayor Cam Guthrie for contributing ideas and comments used in the creation of provincial housing policy.

“He is not afraid to fight on behalf of your city and he’s not afraid to hold me to task when he feels I’ve gone in the incorrect direction,” Calandra said. “I can tell you the mayor has screamed at me on a lot of occasions but in a very nice, pleasant way.”

According to the provincial government’s housing tracker website, Guelph had 1,287 new housing starts in 2023, which is 98 per cent of the 1,320-unit target.

“This is no easy task given that cities approve housing but we don’t build them,” said Guthrie. “My hope is that we’ll continue our positive progress together on funds like this and as more opportunities become available.

“Today’s funding announcement brings us closer to trying to solve the housing crisis within our city.”

The announced dollars come from a $1.2 billion government fund to be distributed Ontario-wide over three years, with the stated goal of helping municipalities pay for infrastructure needed to support new housing.

“Municipalities that reach 80 per cent of their annual target each year will become eligible for funding based on their share of the overall goal of 1.5 million homes,” states a news release from last summer announcing the fund. “Municipalities that exceed their target will receive a bonus on top of their allocation.” 

Guelph did not exceed its target.

According to a city staff report last year, municipal development charge collections are expected to take a $227 million hit over a 10-year period due to the provincial government’s Bill 23, which came into effect at the start of 2023.

“This report does not cover the financial impact of Bill 23 on parkland dedication and community benefits charge collections,” the report notes, explaining the lost revenue is to be recouped through increased property taxes and utility rates. 

The Association of Municipalities of Ontario puts the collective shortfall created by Bill 23 at $1 billion annually.

Thursday’s announced funding comes from provincial taxpayers, whereas development charges are collected from home builders.

Calandra didn’t directly answer questions posed to him regarding what, if anything, the province is doing to ensure any savings developers see are passed along to homebuyers, or whether the province will live up to a series of demands city council made when approving its housing pledge last year.

Those demands include that developers be held accountable for moving forward with approved projects and that municipalities receive assistance cleaning up contaminated properties so they can be used for housing.

Earlier this year, the provincial government began to “reward” municipalities that made “substantial progress,” met or exceeded the housing targets pledged by their municipal councils last year.