City Surpasses Provincial Housing Goal by 16%, Unlocking New Funding for Infrastructure and Growth
PETERBOROUGH, Ont. — The Ontario government has awarded the City of Peterborough more than $1.65 million through the latest round of the province’s Building Faster Fund after the municipality exceeded its provincially assigned housing target in 2025.
The funding, totaling $1,653,397, was announced as part of the third round of the Building Faster Fund, a provincial initiative designed to reward municipalities that make significant progress toward increasing housing supply. Peterborough qualified for the funding after recording 545 housing starts in 2025, surpassing its annual target by 16 per cent.
Provincial officials said the funding will help support local housing development and infrastructure projects while contributing to Ontario’s broader strategy to address housing demand, stimulate economic growth and support employment across the province.
“Our government is relentlessly focused on creating the conditions municipalities need to meet the growing demand for more homes,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is why we have introduced bold legislative changes and introduced measures such as the Development Charge Reduction Program. We appreciate partners like Peterborough who are committed to working alongside us.”
Building Faster Fund Rewards Housing Progress
Launched in August 2023, the Building Faster Fund is a three-year provincial program worth up to $1.2 billion. The initiative provides financial incentives to municipalities that achieve at least 80 per cent of their provincially designated housing targets.
Funding can be used to support infrastructure investments and community projects that help accommodate new residential development and population growth.
The latest allocation highlights Peterborough’s strong performance in advancing housing construction during a period when increasing housing supply remains a key priority for both provincial and municipal governments.
Housing affordability and availability continue to be major challenges across Ontario, prompting the province to introduce a range of measures aimed at accelerating homebuilding and reducing barriers to development.
City Highlights Local Housing Initiatives
Peterborough Mayor Jeff Leal said the municipality has been actively implementing policies designed to encourage residential construction and improve the development approval process.
“Thank you to Minister Flack, MPP Smith and the Government of Ontario for their partnership to help get more homes built in our community,” said Jeff Leal, Mayor of Peterborough. “The City of Peterborough is taking action to support housing construction by reducing development charges and streamlining our development approvals process through the implementation of a Community Planning Permit System. Together, we’re creating the conditions for builders to create homes and jobs in our community.”
Municipal leaders have increasingly focused on reducing administrative delays and lowering development-related costs as part of broader efforts to attract investment and accelerate housing projects.
Province Expands Housing Incentives and Infrastructure Support
The funding announcement comes as Ontario continues to roll out legislative and financial measures intended to boost housing construction.
Among the latest initiatives are the Building Homes and Improving Transportation Infrastructure Act, 2026 and the HST Relief Implementation Act (Residential Property Rebates), 2026, both aimed at streamlining development processes and reducing costs associated with new housing projects.
The province has also introduced the Development Charge Reduction Program as part of the broader Canada-Ontario Partnership to Build, an agreement valued at up to $8.8 billion. The program will provide long-term support for housing-enabling infrastructure projects over the next decade.
Municipalities that reduce and maintain lower development charges will receive priority consideration for infrastructure funding.
The partnership also supports the temporary removal of the provincial portion of the HST on eligible new homes between April 1, 2026, and March 31, 2027, a measure the government says could save homebuyers as much as $130,000 on the purchase of a new home.
Housing Starts Continue to Rise Across Ontario
Provincial housing data suggests recent policies are contributing to increased construction activity across Ontario.
From January to May 2026, Ontario recorded 26,084 housing starts, representing a 17.2 per cent increase compared with the same period in 2025.
Rental housing construction showed even stronger growth, with 13,599 rental starts recorded during the first five months of 2026, a 94.9 per cent increase year-over-year and a record high for that period.
“We know that increasing the housing supply is the best way to make life more affordable for seniors and young families in Peterborough,” said Dave Smith, MPP for Peterborough-Kawartha. “Exceeding our provincial targets means our community has earned a $1.65 million reward. This funding goes straight into building the foundation—the pipes, roads, and local services—needed to keep our building momentum going.”
Additional Infrastructure Investments Planned
Beyond the Building Faster Fund allocation, Ontario is investing more than $46 million through the Municipal Housing Infrastructure Program across municipalities in Peterborough County. The funding is expected to support infrastructure needed for nearly 9,000 new homes, including more than $15 million earmarked for the City of Peterborough.
The province has also extended the deadline for municipalities to spend Building Faster Fund allocations until 2028, giving communities additional flexibility to complete housing-supporting infrastructure projects and maintain development momentum.