A third-party audit of municipal finances will be launched
The Ontario government has promised to address budget shortfalls caused by its newly passed housing law, according to a report by The Canadian Press, with Municipal Affairs and Housing Minister Steve Clark offering assurances that municipalities will be kept “whole” to fund the required infrastructure and services.
Writing to the Association of Municipalities of Ontario (AMO), Clark said the province is planning a third-party audit of municipal finances to ensure that communities “are able to fund and contract road, water, sewer, and other housing enabling infrastructure and services.”
This audit will be performed on “select” municipalities, according to Clark, although a specific list has not yet been provided.
“There should be no funding shortfall for housing enabling infrastructure as a result of Bill 23, provided municipalities achieve and exceed their housing pledge levels and growth targets,” he said.
Clark also pledged to help Toronto with its “distinct budgetary challenges,” revealing that the government plans to cover a third of the city’s $703 million deficit.
“It is critical that you use this support and the time it provides to take action to address Toronto’s forward looking operating pressures,” Clark wrote in a separate letter addressed to Toronto mayor John Tory.
Addressing Clark’s comments, AOM president Colin Best welcomed the government taking steps to address municipal concerns over Bill 23.
“AMO is very pleased with the government’s recognition of the need to ensure municipalities’ access to revenues to support the joint provincial-municipal goal of increasing housing supply and affordability,” he said.
Bill 23, or the More Homes Built Faster Act of 2022, caused alarm among Ontario municipalities when it passed last Monday, with GlobeNews reporting that leaders had called emergency council meetings to discuss budgetary concerns as the bill would see the fees developer pay slashed.
Ontario government said on Monday that Bill 23 is “part of a long-term strategy to help build more homes and make life more affordable for Ontario families.”
