Tuesday, June 23, 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

Wendy Cocchia sworn in as B.C.'s 31st lieutenant-governor

Wendy Cocchia sworn in as B.C.'s 31st lieutenant-governor
Premier David Eby has introduced British Columbia's new lieutenant-governor, saying Wendy Cocchia's lifelong leadership and dedication to community service sets an example for everyone. Cocchia, a longtime businesswoman and philanthropist, was sworn in at a ceremony at B.C.'s Parliament buildings on Thursday before an audience of family, friends, Indigenous leaders, members of the legislature and other dignitaries.

Wendy Cocchia sworn in as B.C.'s 31st lieutenant-governor

Avalanche warning issued for BC

Avalanche warning issued for BC
Avalanche Canada is warning anyone planning to head into British Columbia's backcountry that incoming winter weather is expected to bring a "major increase in avalanche danger."

Avalanche warning issued for BC

Man charged with fraud in bank card scam

Man charged with fraud in bank card scam
Burnaby R-C-M-P say a 26-year-old man is facing 16 fraud-related charges following an investigation into an alleged bank card scam. The Mounties had issued a public warning in February 2024 after two seniors in Burnaby were scammed out of several thousand dollars each.

Man charged with fraud in bank card scam

25 year-old arrested for groping in Vancouver

25 year-old arrested for groping in Vancouver
Police in Vancouver say a 25-year-old man has been sentenced after pleading guilty to groping women who had been walking in the downtown area in 2023. Sex crimes officers began investigating that spring after a series of reports from women saying they had been assaulted near B-C Place stadium and Rogers Arena.

25 year-old arrested for groping in Vancouver

How Trump's foreign policy could shape Canada's approach to aid, trade and intel

How Trump's foreign policy could shape Canada's approach to aid, trade and intel
U.S. President Donald Trump's "America First" changes to foreign policy could have drastic consequences for Canada's approach toaid, trade, intelligence and diplomacy.

How Trump's foreign policy could shape Canada's approach to aid, trade and intel

Google payments for news organizations to begin later than expected

Google payments for news organizations to begin later than expected
Canadian journalism organizations are having to wait a bit longer for their share of the $100 million Google agreed to pay news outlets to be exempt from the Online News Act. The organization administering the money now says funds will flow to outlets later than the January timeline it first provided.

Google payments for news organizations to begin later than expected