Toronto risks losing $30M in federal funding after vote against sixplexes citywide

Julia Alevato · CBC News

· Posted: Jul 13, 2025 4:00 AM EDT | Last Updated: 11 minutes ago

The City of Toronto is astatine hazard of losing $30 cardinal successful national lodging backing aft metropolis assembly voted past period against allowing sixplexes citywide, a cardinal information of its woody with Ottawa.

At its gathering connected June 25, metropolis assembly debated the question to o.k. sixplexes successful each parts of the city, but that was amended by councillors who approved maintaining permissions for fourplexes citywide portion limiting sixplex operation successful 8 Toronto-East York territory wards and Ward 23 (Scarborough North), wherever a aviator is already successful place.

In March, then-federal lodging curate Nate Erskine-Smith warned Toronto Mayor Olivia Chow that immoderate deviation from a citywide argumentation permitting sixplexes would effect successful 25 per cent little national funding, which translates to astir $30 cardinal of the full $118 cardinal that Ottawa has pledged annually to Toronto from its Housing Accelerator Fund, a programme that provides inducement backing for cities to physique much homes.

Gregor Robertson, Canada's caller lodging minister, has not indicated whether helium volition travel his predecessor's lead. In a connection to CBC News connected Thursday, a spokesperson said the national authorities is moving with Toronto to conscionable its sixplex goals. 

"The Housing Accelerator Fund rewards ambitious lodging initiatives from section governments, with a absorption connected reducing bureaucracy, zoning restrictions, and different reddish tape. We are moving intimately with the metropolis of Toronto to conscionable these goals and stay acceptable to enactment with each levels of governments to tackle the lodging crisis," said spokesperson Mohammad Hussain.

Allowing sixplexes would people a "significant milestone" successful gathering Toronto's commitments nether the national Housing Accelerator Fund to let much low-rise, multi-unit lodging improvement done as-of-right zoning bylaws successful its neighbourhoods, according to a study by Toronto's main planner from past month.

WATCH | Mayor Chow asked Ottawa for much backing to physique houses faster:

Last year, assembly decided to licence multiplex lodging crossed the city.

This year, arsenic portion of a aviator task successful Ward 23, unit began studying the imaginable of permitting low-rise multiplexes with up to six dwelling units and with heights of up to 4 storeys. Based connected that study, metropolis unit made their proposal past period that metropolis assembly o.k. by-law amendments to licence fiveplexes and sixplexes in low-rise residential neighbourhoods crossed the city.

'Using wealth arsenic a punishment' 

Alison Smith, prof of governmental subject astatine the University of Toronto, said determination are amended ways for the national authorities to assistance municipalities conscionable their lodging targets different than cutting funds.

A bully solution would beryllium housing-enabling infrastructure to guarantee municipalities person what they request successful bid to physique much homes, she said.

"I deliberation a amended mode for the feds to spell astir it would beryllium to acceptable municipalities up for occurrence by providing an situation successful which they tin succeed, alternatively than utilizing wealth arsenic a punishment oregon arsenic a penalty," Smith told CBC News. 

"The national authorities has the money, but doesn't person the powerfulness to marque changes," she said. "They can't conscionable nonstop wealth retired and not get results, truthful I deliberation the national authorities is feeling the unit to amusement that its investments are making an interaction and are making changes."

LISTEN | Listeners respond to Toronto metropolis assembly ballot for allowing sixplexes:

Coun. Gord Perks, who was pushing for a city-wide adoption astatine the assembly gathering successful June, warned councillors that the metropolis could beryllium denied backing if it voted against approving sixplexes.

"I've spent a sizeable magnitude of clip and effort moving with my colleagues connected council, trying to find bulk enactment for doing what this assembly already committed to successful 2023, which is citywide sixplexes," helium said aft the assembly debate. "But I've been incapable to find that."

Along with Ward 23, the pursuing wards present let sixplexes:

• Ward 4, Parkdale-High Park.
• Ward 9, Davenport.
• Ward 10, Spadina-Fort York.
• Ward 11, University-Rosedale.
• Ward 12, Toronto-St. Paul's.
• Ward 13, Toronto Centre.
• Ward 14, Toronto-Danforth.
• Ward 19, Beaches-East York.