Ottawa Mayor Mark Sutcliffe said he’s ready to work with the provincial government on a solution after the city missed its target for housing construction starts and missed out on millions in funding through the
Building Faster Fund
.
Ontario’s Ministry of Municipal Affairs and Housing confirmed Ottawa is one of 27 municipalities in the province that fell short of its target and will not qualify for a share of the funding.
Of the 50 municipalities tracked by the province, only 15 met or exceeded their provincially-mandated targets, while another eight are listed as “on track” at more than 80 per cent of their annual target for new builds.
Sutcliffe referenced recent remarks from Municipal Affairs and Housing Minister Rob Flack, who suggested he and the province might consider “new ways to extend and improve” the fund.
“We’ll continue to invest in affordable housing with our partners,” Sutcliffe said in French during an Aug. 21 press conference. “I heard that (Flack) said maybe instead of basing the funds on figures by each (individual) city, there is a better way to distribute money across cities in the province. I’m ready to work with Rob and the provincial government to find solutions for Ottawa residents. Maybe in the near future there will be changes to that program.”
Sutcliffe said he’s optimistic with the figures for new builds so far in 2025, despite economic challenges in the Canadian construction industry.
Housing starts have been up 68 per cent so far in 2025, compared to the same period in 2024, Sutcliffe said.
“That’s way above the national average of 4 per cent. There’s a lot more work to do to
make housing affordable and accessible
, and improve and accelerate the approval process,” he said in a social media post.
Flack spoke in Ottawa recently at the Association of Municipalities of Ontario conference and suggested the provincial government could reconsider how those funds are allocated.
“As we move forward, as we look to the future here, we’re going to be considering new ways to extend and improve the Building Faster Fund,” Flack told delegates on Aug. 19.
“That includes ensuring the fund reflects the new markets we are in, as well as encouraging municipalities to cut development charges and get shovels in the ground on key infrastructure projects.”
He told AMO delegates to “stay tuned for more details” following consultation with the AMO and Ontario’s big-city mayors.
The province is in a “generational housing crisis,” Flack said, and the fund rewards municipalities that are getting homes built faster.
“Now is the time to build,” he said. “We cannot sit idly by while our costs go up. For every new home delayed, an electrician, a plumber, a carpenter and a labourer goes home. This is not good enough.”
According to annual data collected by the Canada Mortgage and Housing Corporation, there were 5,716 new dwellings constructed in Ottawa as of July. That number was at 3,243 at the same point in 2024.
There were 7,871 new builds in Ottawa in 2024, only 62.5 per cent of its target of 12,583.
Ottawa fell just shy of its target in 2023,
but still qualified for $37.5 million in provincial funding
for exceeding 80 per cent of the goal, breaking ground on 10,313 homes that year.
“That’s 10,313 families that are going to have a roof over their heads. I find that absolutely amazing,” Ford said in April 2024 as he presented the mayor and city councillors with an oversized cheque.
“These funds can be used by the city for community development and infrastructure projects that lay the groundwork for more housing.”
The Building Faster Fund is a three-year, $1.2-billion fund to be doled out to municipalities that reach at least 80 per cent of their annual new housing targets.
The government’s More Homes Built Faster Act of 2022 set a target of 1.5 million new homes in Ontario by 2031. Ottawa’s share of that is 151,000, which was the target city council committed to in March 2023.
According to provincial data, there have been 28,641 new builds in Ottawa since the legislation was enacted in 2022.
