The Ontario government plans to award $16.7 million to Kitchener and Waterloo through the second round of the Building Faster Fund.
The three-year, $1.2-billion program provides funding for housing and community-related infrastructure in municipalities that meet at least 80 per cent of their provincially designated housing targets. In 2024, the two cities broke ground on nearly 5,000 new homes.
Kitchener will receive $10.3 million after starting 3,067 units, which is 105 per cent of its target of 2,917. Waterloo will receive $6.4 million for starting 1,722 units, or 129 per cent of its target of 1,333.
Separately from the Building Faster Fund, the province is also investing through the $4- billion Municipal Housing Infrastructure Program (MHIP), which supports housing-related infrastructure. That includes $11.9 million for Waterloo to support nearly 5,000 new homes, and $19.5 million across the Region of Waterloo for projects tied to more than 14,000 homes.
“We were very happy to receive the Building Faster Fund,” Dorothy McCabe, mayor of Waterloo, said. “Our staff team and council worked really hard, and we need the money.”
McCabe said housing targets are set by the province, with Waterloo’s next overarching goal set at 16,000 new units over the next 10 years.
“There are a lot of costs that go with building new housing,” she said. “This money will go into wastewater pumping stations, new roads—anything that supports housing development.”
McCabe also called the Building Faster Fund challenging, arguing that it measures municipalities on the wrong things.
She pointed to Waterloo’s 2023 affordable housing strategy, which highlights a shortage of affordable units across the region.
“We have a significant project working with Habitat for Humanity that will add about 1,000 new homes that are affordable for our community,” she said.
Berry Vrabanovic, mayor of Kitchener, also noted that this year’s funding is crucial for building and maintaining infrastructure that supports future housing. These projects include a new fire hall downtown, new pumping stations and improved stormwater management.
“This funding helps ensure our communities see economic investments, new housing, and jobs that benefit residents in Kitchener and Waterloo,” Vrbanovic said. “These things are important for the growth of our community.”
Stephen Litt, chief development officer at Vive Development, said development fees should be reduced to encourage more projects to begin construction. He said the federal and provincial governments need to follow through on promises to lower development charges.
Despite Premier Ford calling on higher levels of government to do more, he said his incentives for municipalities will continue to expand home building in Ontario.
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