The Ontario government is awarding the City of Guelph more than $3.6 million through the second round of its Building Faster Fund, citing the municipality’s progress in accelerating home construction amid ongoing housing supply pressures across the province.
The funding announcement, made Monday by the Ministry of Municipal Affairs and Housing, provides Guelph with $3,692,960 after the city exceeded 80 per cent of its provincially assigned housing target for 2024. Guelph broke ground on 1,279 new homes last year, reaching more than 85 per cent of its annual target and qualifying for the incentive-based funding program. Provincial officials say the investment will help support additional housing development, community infrastructure and broader economic growth.
“Our government is relentlessly focused on kickstarting the housing sector,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is why we introduced the Building Faster Fund, along with the Fighting Delays, Building Faster Act and the provincial HST rebate for first-time home buyers. We’re working alongside our municipal partners with investments to help build more homes and keep workers in tariff-hit sectors on the job.”
The Building Faster Fund was announced in August 2023 as a three-year, $1.2-billion initiative designed to encourage municipalities to speed up planning approvals and construction timelines. Under the program, communities that achieve at least 80 per cent of their annual housing targets are rewarded with funding that can be used for housing-enabling and community-enabling infrastructure, such as roads, water systems and servicing upgrades needed to support new development.
Provincial officials say the fund is a key component of Ontario’s broader strategy to increase housing supply, reduce construction delays and support employment in the residential construction sector. The second round of funding builds on earlier allocations made to municipalities that demonstrated early progress toward provincial housing goals.
In Guelph’s case, the province says the new funding will complement additional investments already flowing to the city. Beyond the Building Faster Fund allocation, Ontario is investing more than $2 million in Guelph through the Municipal Housing Infrastructure Program, funding that is expected to help enable the construction of nearly 2,000 new homes in the community.
Municipal leaders welcomed the announcement, framing it as both recognition of recent progress and critical support as housing demand continues to rise.
“We are thrilled that Guelph has successfully met its 2024 housing target, which has enabled us to secure much-needed support from the Ontario government through their Building Faster Fund,” said Cam Guthrie, Mayor of the City of Guelph. “This funding will play a crucial role in our continued efforts to create diverse housing options for our community. I want to thank the provincial government for their support, as we work together to enhance our city’s livability and meet this housing crisis head on.”
The funding announcement comes as Ontario continues to report strong growth in rental housing construction, a key focus for policymakers as affordability challenges persist. From January to October 2025, the province recorded 18,103 rental housing starts, an increase of more than 34 per cent compared with the same period in 2024. The government says this marks the highest level of rental starts on record for that time of year, surpassing the total year-to-date rental starts for all of 2024.
To further support municipalities, the province has also extended the deadline for spending Building Faster Fund allocations to 2028, giving local governments additional flexibility to plan and deliver infrastructure projects tied to housing growth.
The province’s housing strategy also includes a suite of legislative and fiscal measures aimed at reducing costs and speeding up construction. These include the Fighting Delays, Building Faster Act, 2025, the Protect Ontario by Building Faster and Smarter Act, 2025, and commitments outlined in the 2025 Ontario Economic Outlook and Fiscal Review: A Plan to Protect Ontario. Together, the measures are intended to streamline development approvals, reduce regulatory barriers and support builders in bringing new homes to market more quickly.
In addition, Ontario is proposing to rebate the full provincial portion of the harmonized sales tax for first-time home buyers purchasing most new homes. Subject to the passage of federal legislation, the rebate would eliminate the eight per cent provincial HST on qualifying new homes valued up to $1 million, potentially saving first-time buyers up to $80,000 when combined with existing provincial relief.
Provincial officials say the combination of incentive-based funding, legislative reform and targeted tax relief is intended to keep housing construction moving while supporting local economies. For municipalities like Guelph, the Building Faster Fund is positioned as both a financial incentive and a signal of continued provincial backing for communities that demonstrate progress in addressing Ontario’s housing shortage.
