Overview

• In a July 21 letter to Mayor Olivia Chow, Minister Gregor Robertson warned that Toronto must revisit its phased sixplex zoning by December 20 to avoid partial withdrawal of its Housing Accelerator Fund support.
• The Housing Accelerator Fund agreement signed in late 2023 ties $471 million in federal funding to the creation of nearly 12,000 new housing units in Toronto over three years through as-of-right low-rise zoning.
• Last month, Toronto city council adopted a compromise that allows sixplex buildings in select wards immediately while deferring implementation in others, prompting federal concern over weakened density commitments.
• The funding threat underscores rising federal–municipal tensions as Ottawa leverages conditional grants to enforce municipal compliance with housing density targets.
• A March 11 warning from then-Housing Minister Nate Erskine-Smith similarly cautioned that Toronto could lose up to 25 percent of its funding if it fell behind on agreed-upon density benchmarks.