Subtitle:
Council’s decision sparks backlash from Ottawa, threatening key funding for affordable housing projects
Content:
Toronto could forfeit up to $30 million in federal funding following a city council vote that struck down a proposal to permit sixplexes across all residential neighborhoods. The move has drawn swift criticism from federal housing officials, who have tied funding to municipalities that demonstrate concrete steps toward increasing housing density.
The proposed policy aimed to ease zoning restrictions and allow six-unit homes to be built citywide, a measure seen as vital to addressing Toronto’s growing housing crisis. However, opponents within council argued it could lead to overdevelopment in established communities without sufficient infrastructure to support it.
Following the vote, federal housing representatives warned that Toronto’s refusal to adopt the density-friendly policy could put future funding from Ottawa’s Housing Accelerator Fund at serious risk. The fund was created to incentivize cities to expand affordable housing through bold reforms.
Critics of the council’s decision say the city is missing a crucial opportunity to address housing affordability and meet growing demand. Proponents of the sixplex plan argue that the change would have enabled more families, newcomers, and low-income residents to find homes within the city limits.
Mayor Olivia Chow expressed disappointment over the outcome, emphasizing that unlocking more housing options is essential for Toronto’s future. Discussions are expected to continue in the coming weeks as city officials weigh alternatives to avoid losing the much-needed federal support.