The federal government has rejected Windsor's application to the $4-billion Housing Accelerator Fund.
Minister of Housing Sean Fraser announced the decision in a letter Wednesday to mayor Drew Dilkens and the City of Windsor.
The letter states "in light of the recent decision by Council to stop short of the best practices we published to encourage cities to increase their ambition in their applications to the fund, and in the presence of applications from neighbouring cities that are determined to meet those standards, I cannot approve Windsor’s application."
The two page letter also says "With more than 500 applications, and a finite amount of cash in the fund, only the most ambitious communities will receive funding. Choosing not to implement the best practices we have outlined or to adopt the recommendations of Ontario’s Housing Affordability Task Force is well within the decision making power of City Council. However, there is no obligation on the federal government to support proposals that do not meet the very high standard set by other applicants to the same fund, who have chosen to adopt the measures included in those documents."
The city and the federal government have been at odds over a condition to access the fund that required municipalities to agree to a re-zoning amendment that would allow four residential units as-of-right, anywhere in the municipality. The city currently allows three residential units as-of-right.
Windsor's application to the fund only allowed four-plexes as-of-right along major transit routes, in most parts of downtown, and in other areas across the city.
It also would have allowed multi-unit builds and several-story builds, including four-plexes, across almost 1,000 acres and nearly 50 kilometres of arterial roads with bus routes available. The city would also allocate enough land to build thousands more units than required for Windsor to meet its HAF housing targets.
If the application was approved, Windsor would have been eligible to receive around $40 million in base funding, and potentially $30 million more if the municipality reaches its aggressive housing targets by encouraging purpose built units to address missing middle and affordability.
A copy of the letter Housing Minister Sean Fraser sent to announce Windsor's application to the Housing Accelerator Fund had been rejected. Jan. 31, 2024 (Photo: AM800)