Oakville at risk of losing federal housing funds

Minister issues warning as city breaks deal to bring in gentle density policies

- NOOR JAVED

Oakville city council voted down two zoning proposals this month after local residents expressed concerns.

Oakville could be the first city in Canada to lose $25 million in federal funding if it doesn’t live up to the promises its mayor made to the federal government, including “personal assurances” that he would help bring in gentle density policies such as fourplexes across the city.

Housing Minister Sean Fraser sent a sharply worded letter to Oakville Mayor Rob Burton last week, obtained by the Star, which expresses disappointment with the mayor for rejecting a recent motion in council to introduce gentle density measures, including four-unit dwellings on a single lot and greater densification near Sheridan College.

“You gave me personal assurances that you were sincerely looking to partner, and to improve the availability of housing in your community,” Fraser writes in the letter. “I was disappointed to see council reject the amendments which would have permitted gentle density in Oakville, as is required under our Housing Accelerator Fund (HAF) agreement.”

“As a result of voting down the zoning reforms you had committed to, Oakville is now at risk of becoming the first HAF recipient in Canada to have breached its agreement and is jeopardizing its funding.”

Last year, the federal government initiated a $4-billion program aimed at accelerating the supply of affordable homes — and has given money to dozens of cities to push forward progressive housing policies.

This could be the first time a city has pushed back on the conditions to get that funding, despite a binding agreement.