Monday, June 22, 2026
ADVT 
National

Ottawa threatens to pull Toronto's housing funding over sixplex decision

Darpan News Desk The Canadian Press, 23 Jul, 2025 05:07 PM
  • Ottawa threatens to pull Toronto's housing funding over sixplex decision

Claiming the city is falling short on its promise to ramp up density, federal Housing Minister Gregor Robertson is threatening to pull some of Toronto's housing funding.

In a letter to Toronto Mayor Olivia Chow dated Monday, Robertson wrote that he's disappointed by a recent decision to limit where builders can put up to six housing units on a lot.

Last month, Toronto city council compromised with a plan that would see some city wards sign up to the sixplex framework, while others would have the choice to opt in later.

Robertson argued that decision went against Toronto's agreement with the federal government under the Housing Accelerator Fund — a tool Ottawa uses to encourage cities to rapidly build more housing.

"I encourage the City of Toronto to revisit the measures they could implement to address the housing crisis and to restore the ambitious scope of this agreement," Robertson wrote in the letter, now a part of submissions to the city council's upcoming meeting agenda.

Toronto signed a deal with the feds in late 2023 that would see the city build nearly 12,000 new units over three years and receive $471 million in federal funding.

The deal calls on city staff to report back to council "on opportunities to permit more low-rise, multi-unit housing development through as-of-right zoning by-laws in neighbourhoods across Toronto, including … permissions for residential buildings with up to six dwelling units."

In his letter, Robertson warned Toronto could lose some of its housing funding if the city fails to meet the goals of the original agreement.

He said he wants to find a solution to the impasse by December 20.

"As previous stated, I will underscore the possibility of reduced funding if the City of Toronto does not present solutions that ensures the spirit of the agreement is met," Robertson wrote.

In a previous letter to Chow dated March 11, then-housing minister Nate Erskine-Smith warned Toronto could lose up to 25 per cent of its funding if the city falls behind on boosting housing density.

Claiming the city is falling short on its promise to ramp up density, federal Housing Minister Gregor Robertson is threatening to pull some of Toronto's housing funding.

In a letter to Toronto Mayor Olivia Chow dated Monday, Robertson wrote that he's disappointed by a recent decision to limit where builders can put up to six housing units on a lot.

Last month, Toronto city council compromised with a plan that would see some city wards sign up to the sixplex framework, while others would have the choice to opt in later.

Robertson argued that decision went against Toronto's agreement with the federal government under the Housing Accelerator Fund — a tool Ottawa uses to encourage cities to rapidly build more housing.

"I encourage the City of Toronto to revisit the measures they could implement to address the housing crisis and to restore the ambitious scope of this agreement," Robertson wrote in the letter, now a part of submissions to the city council's upcoming meeting agenda.

Toronto signed a deal with the feds in late 2023 that would see the city build nearly 12,000 new units over three years and receive $471 million in federal funding.

The deal calls on city staff to report back to council "on opportunities to permit more low-rise, multi-unit housing development through as-of-right zoning by-laws in neighbourhoods across Toronto, including … permissions for residential buildings with up to six dwelling units."

In his letter, Robertson warned Toronto could lose some of its housing funding if the city fails to meet the goals of the original agreement.

He said he wants to find a solution to the impasse by December 20.

"As previous stated, I will underscore the possibility of reduced funding if the City of Toronto does not present solutions that ensures the spirit of the agreement is met," Robertson wrote.

In a previous letter to Chow dated March 11, then-housing minister Nate Erskine-Smith warned Toronto could lose up to 25 per cent of its funding if the city falls behind on boosting housing density.

Picture Courtesy: THE CANADIAN PRESS/Justin Tang

MORE National ARTICLES

B.C. investigates 'significant' opioid diversion, including international trafficking

B.C. investigates 'significant' opioid diversion, including international trafficking
A "significant portion" of opioids prescribed by doctors and pharmacists in British Columbia are being diverted, and prescribed alternatives are being trafficked provincially, nationally and internationally, a Ministry of Health investigative unit says.

B.C. investigates 'significant' opioid diversion, including international trafficking

MPs reject Trump's idea of clearing out Gaza as Israeli minister points to Canada

MPs reject Trump's idea of clearing out Gaza as Israeli minister points to Canada
Canadian politicians are pushing back on the idea of clearing Palestinians out of the Gaza Strip as an Israeli minister suggests some of them could be sent to Canada. The previous day, U.S. President Donald Trump stunned leaders across the Middle East and beyond when he suggested that the territory be cleared out and made into a U.S.-owned resort destination.

MPs reject Trump's idea of clearing out Gaza as Israeli minister points to Canada

Ottawa, provinces should discuss possibility of west-east oil pipeline: Wilkinson

Ottawa, provinces should discuss possibility of west-east oil pipeline: Wilkinson
Federal Energy Minister Jonathan Wilkinson says Ottawa and the provinces should discuss the possibility of an oil pipeline to Eastern Canada to improve energy security and diversify trade. Wilkinson said Thursday that United States President Donald Trump's tariff threats have exposed "vulnerabilities" in the Canadian economy, including in the energy sector. 

Ottawa, provinces should discuss possibility of west-east oil pipeline: Wilkinson

Federal government commits more than $160 million to Jasper recovery

Federal government commits more than $160 million to Jasper recovery
The fire-ravaged town of Jasper, Alta., has received two pieces of critical funding from the federal and provincial governments as it attempts to stabilize in the wake of last summer's devastating wildfire. The federal government announced on Thursday it's committing $162 million to the recovery in Jasper, Alta. — a portion of which is being dedicated to interim and long-term housing.

Federal government commits more than $160 million to Jasper recovery

Fast-track approval no guarantee of success for B.C. mines, researcher suggests

Fast-track approval no guarantee of success for B.C. mines, researcher suggests
The mining industry is applauding the British Columbia government's decision to fast-track permits for several projects amid the ongoing U.S. tariff threat, but research suggests economic factors have been behind long delays for many other proposals. Simon Fraser University associate professor Rosemary Collard says research shows that regulatory fast-tracking of mining projects is no guarantee that they will all materialize.

Fast-track approval no guarantee of success for B.C. mines, researcher suggests

Former human rights chief commissioner sues for defamation

Former human rights chief commissioner sues for defamation
At a press conference Thursday, Birju Dattani spoke about lawsuits he has filed against Conservative deputy leader Melissa Lantsman, media personality Ezra Levant and the Jewish advocacy group Centre for Israel and Jewish Affairs over statements made about him on social media last year. One of the defendants has called Dattani's claims "baseless."

Former human rights chief commissioner sues for defamation