Building Faster Fund Allocation Supports New Housing and Infrastructure Growth
The Ontario government has awarded the City of Greater Sudbury nearly $1.3 million through the latest round of the Building Faster Fund after the municipality exceeded its provincially assigned housing target in 2025, underscoring the province’s ongoing effort to accelerate housing construction and support community growth.
The funding announcement, made by the Ministry of Municipal Affairs and Housing, provides Greater Sudbury with $1,296,053 through the program’s third round. The city earned the funding after recording 433 housing starts in 2025, surpassing its annual housing target by 14 per cent.
Provincial officials said the funding is intended to help municipalities invest in infrastructure that supports housing development while contributing to broader economic growth objectives.
“Greater Sudbury’s results show what’s possible when municipalities remove barriers and get more homes built,” said Graydon Smith, Associate Minister of Municipal Affairs and Housing. “We’re recognizing that leadership by reinvesting in the infrastructure needed to keep building and support long-term growth. By exceeding its housing target, the city is helping create more opportunities for families and workers to find a place to call home.”
Housing Performance Drives Provincial Reward
The Building Faster Fund was introduced in August 2023 as a three-year initiative worth up to $1.2 billion. The program rewards municipalities that achieve at least 80 per cent of their provincially designated housing targets by providing financial support for housing-enabling infrastructure and community improvements.
Greater Sudbury’s performance placed it among the municipalities eligible for the latest round of funding, reflecting the city’s efforts to increase housing supply amid growing demand across Ontario.
Municipal leaders welcomed the investment, describing it as an important contribution toward future housing development and infrastructure planning.
“We are grateful to the Ontario government for its continued partnership and support through the Building Faster Fund,” said Paul Lefebvre, Mayor of Greater Sudbury. “Unlocking more housing in Greater Sudbury is a key priority for City Council and this funding will allow us to continue making strategic infrastructure investments that help get more homes built and ensure Greater Sudbury is well positioned to meet the needs of our growing community.”
Province Expands Measures to Accelerate Homebuilding
The funding announcement comes as Ontario continues to introduce measures aimed at increasing housing construction and reducing barriers for developers.
The province recently advanced legislation through the Building Homes and Improving Transportation Infrastructure Act, 2026, and the HST Relief Implementation Act (Residential Property Rebates), 2026. Officials say the measures are designed to streamline development approvals, lower costs associated with construction, and speed up the delivery of new housing and infrastructure projects.
Ontario has also introduced the Development Charge Reduction Program as part of the broader Canada-Ontario Partnership to Build, an initiative valued at up to $8.8 billion. The program will provide funding over a 10-year period for infrastructure projects that enable housing development.
Municipalities that reduce and maintain lower development charges are expected to receive priority consideration for funding, according to the province.
Another key element of the partnership is the temporary removal of the Harmonized Sales Tax on eligible new homes purchased between April 1, 2026, and March 31, 2027. Provincial officials estimate the measure could save homebuyers as much as $130,000 on the purchase price of a new home.
Together, these initiatives are intended to improve housing affordability, encourage new construction activity, and support employment in Ontario’s construction and development sectors.
Ontario Records Strong Housing Growth in 2026
Recent provincial data indicate that housing construction activity has accelerated significantly in 2026.
From January to May, Ontario recorded 26,084 housing starts, representing a 17.2 per cent increase compared with the same period in 2025. Rental housing construction experienced particularly strong growth, with 13,599 rental starts during the first five months of the year—up 94.9 per cent year over year and marking a record level for that period.
To provide municipalities with additional flexibility, the province has also extended the deadline for spending Building Faster Fund allocations until 2028.
In the Sudbury region specifically, Ontario is investing more than $45 million through the Municipal Housing Infrastructure Program to support housing-enabling projects expected to facilitate more than 3,000 new homes. Approximately $35 million of that funding has been allocated to the City of Greater Sudbury, further reinforcing efforts to expand housing supply and accommodate future population growth.
As housing remains a central economic and social priority across the province, provincial and municipal leaders say continued investment in infrastructure and development-ready communities will be critical to meeting Ontario’s long-term housing goals.