Town rejects the Housing Accelerator Fund's zoning requirements
The federal government is terminating its housing fund agreement with the Town of Oakville, Ontario after the municipality rejected measures that would allow more dense housing development – a key condition for receiving the money.
As a result, Oakville will be giving back $1.28 million it had received from Ottawa.
"The Town is returning the money and is awaiting instructions from CMHC (Canada Mortgage and Housing Corporation) on how to proceed," said Jorge Gomez, a spokesperson for Oakville Mayor Rob Burton's office.
Housing Minister Sean Fraser announced the deal's termination after Oakville's council and Mayor Burton voted down a motion that would permit higher-density housing forms like fourplexes and student housing.
"In order to receive funding, our partners need to implement the measures they agreed to," Fraser wrote in a social media post. "After voting down ambitious housing reforms, the Town of Oakville is in breach of its agreement under the Housing Accelerator Fund and won't receive federal funding."
In January, Oakville received the initial $1.28 million installment from the $25 million it was approved for under the Housing Accelerator Fund. However, this was contingent on the town council approving zoning changes to allow four-story buildings within 800 meters of Sheridan College within 90 days.
While that specific motion passed on January 22nd, the council rejected a separate proposal to permit four dwelling units on residential properties town-wide - a form of "gentle density" required by the federal fund's guidelines.
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The $4 billion Housing Accelerator Fund incentivizes municipalities to update zoning laws aligned with Ottawa's housing goals of increasing supply and diversifying housing types across Canada.
Oakville is the first municipality to reject the density measures and return the money from the Housing Accelerator Fund. Since the launch of the $4 billion program in May, cities have been rushing to get their slice of the pie. HAP aims to expedite the construction of diverse housing types and increase the overall housing supply in the country.
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