London, Ont. lands $74M from feds to accelerate new housing construction

London is the first city in Canada to secure funding from the federal government’s Housing Accelerator Fund (HAF).

Prime Minister Justin Trudeau was in south London for the $74 million announcement, praising Mayor Josh Morgan’s aggressive stance on addressing the local housing crisis.

“Based on Josh’s success and the announcement we’re making right now, I want to challenge other mayors across the country to step up with their proposals,” Trudeau said.

On August 29, council voted unanimously to increase the permitted density on residential properties from three to four units without requiring a zoning amendment.

The decision was in response to an August 18 letter from Minister of Housing, Infrastructure and Communities Sean Fraser, asking London to be more aggressive as he considered the city’s application for HAF funding.

On Wednesday, Fraser suggested it was the proof he needed to support London’s application, “This is extraordinary, and it’s leading to a $74 million contribution from the Housing Accelerator Fund to the City of London.”

London’s application commits to 2,000 additional housing units over the next three years.

The mayor described the funding as flexible.

It will address existing barriers to greater intensification near transit corridors, Western University, Fanshawe College, and other appropriate areas.

“Being first is great,” the mayor told CTV News after the news conference. “We’re ahead of the curve, and we’ve got plans.”

Funds might be used to increase sewer and water capacity in areas where servicing is limiting intensification.

Morgan also suggested it could incentivize the conversion of some downtown office space into residential units.

To keep pace, city staff will use funding to improve processes in the planning and building departments.

“We very much have to think differently, get some consultants, maybe hire some temporary staff to get this work done, but we are very motivated,” said Scott Mathers, deputy city manager of Planning and Economic Development.

“The program was designed to reward municipalities that are going to pursue affordability in the creation of new housing supply, and we recognize we can’t just create lightly affordable housing, we also have to build supportive housing,” added Morgan.

Currently, 2,000 Londoners are experiencing homelessness, including 600 with complex needs.

The mayor expects some of the funding to support the council-endorsed Whole of Community Response to Homelessness that aims to create up to 15 low barrier service hubs and 600 supportive housing units.

“[The funding] can support the creation of transitional beds in the hubs, so we can use some capital dollars for that, we can also use it for the wrap-around supportive housing,” said Morgan.