Ottawa mayor seeks funding help to cover shortfalls from provincial housing bill
Global News
Mayor Sutcliffe says the city needs financial support from other levels of government to make up for the lost revenue it expects will be associated with a provincial housing bill.
Ottawa Mayor Mark Sutcliffe says the city needs financial support from other levels of government to make up for the lost revenue it expects will be associated with a provincial housing bill.
In a speech Wednesday at a special city council meeting to discuss the city’s 2023 budget, Sutcliffe said that if the city does not receive such support, it will face significant budget pressures in the coming years.
“If the provincial and federal governments don’t support the financial gaps we have in transit and other areas, if we don’t receive funding to address the lost revenue associated with Bill 23 and if we don’t receive support to build the housing we need over the next 10 years, we will face significant budget pressures in 2024 and beyond,” he said.
Bill 23, dubbed as the More Homes Built Faster Act, is Ontario’s attempt to quickly build more housing units.
But since it passed the bill in November, Premier Doug Ford’s government has received criticism because of measures in the new law that allow for the reducing or exempting of development fees normally paid to the city.
The mayor said in a November letter to Steve Clark, the province’s municipal affairs and housing minister, that the bill would result in a $130 million loss and leave an infrastructure funding gap.
“I want to encourage you again to extend the consultation period before the legislation is passed, and to consider the dramatic financial implications on the City of Ottawa of the changes before proceeding with the bill,” Sutcliffe wrote at the time.
Some municipalities have argued that the Ontario government’s decision to freeze, reduce and exempt fees developers pay to build affording housing, non-profit housing and some rentals will be costly for them.