Hamilton hits provincial housing target. But anticipated $12-million payout 'falls short' of funding losses: officials
Hamilton achieved 3,347 housing starts — when construction on homes begins — compared to the annual target, 3,447.
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Hamilton stands to land $12 million in funding after hitting provincial housing targets last year, but that still won't fill a local fiscal gap caused by other legislation, city officials say.
To receive their share of the Building Faster Fund, municipalities must hit at least 80 per cent of their provincially mandated housing goals.
“We overqualified,” Jason Thorne, the city's general manager of economic development and planning, told council during a recent budget presentation.
Hamilton achieved 3,347 housing starts — when construction on homes begins — compared to the annual target, 3,447, or nearly 100 per cent of the mark.
That's according to Canada Mortgage and Housing Corporation (CMHC) data posted on the province's online “housing tracker.”
The Ontario government “will begin to roll out” the Building Faster Fund allocations to municipalities that have hit or surpassed their targets “in the coming months,” Bianca Meta, spokesperson for the Minister of Municipal Affairs and Housing, said via email.
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For instance, in 2023, the city issued permits for 4,263 units compared to the 3,347 actual starts, markers that were both “just shy” of records, Thorne noted.
Overall, it was a “pretty extraordinary year,” he said, noting a record-setting $2.5 billion in construction activity in Hamilton, which erased the previous high-water mark of $1.2 billion.
However, the city expects a dip in development-generated revenues in 2024 as the pace of applications starts to slow.
Thorne pointed to a number of factors, including “some general uncertainty” as developers see a drop in sales across all housing types.
“Their borrowing costs are up, their construction costs are up. The skilled-labour shortage is also an impact on them.”
One high-profile example of the retreating market revealed itself in December, when the firm behind the redevelopment of the downtown Hamilton City Centre mall into highrise condos announced the project was “on pause.”