LONDON, Ont. — The Ontario government is rewarding the City of London with nearly $12 million for making significant progress toward its provincial housing targets, the Ford government announced Monday.
London will receive $11,912,933 through the second round of the province’s Building Faster Fund, a three-year, $1.2-billion program aimed at accelerating municipal approvals and boosting housing construction.
The city broke ground on 3,723 new homes in 2024, achieving more than 95 per cent of its provincial housing target for the year. That performance secured London a share of the fund, which provides financial incentives to municipalities that meet at least 80 per cent of their assigned housing benchmarks.
Government Praises Local Efforts
Premier Doug Ford framed the announcement as part of his government’s broader push to address Ontario’s housing shortage by helping municipalities clear red tape and invest in community infrastructure.
“We’re working closely with Mayor Morgan and with local leadership in municipalities across Ontario to get more homes built faster,” Ford said. “Today’s investment is just the latest step we are taking to protect our workers and communities by supporting continued growth in London and across Ontario.”
The province launched the Building Faster Fund in August 2023, tying payouts to measurable housing progress. Municipalities can use the money to fund “housing-enabling and community-enabling infrastructure,” such as water systems, transit, and road upgrades that support development.
Infrastructure Investments Expand
Beyond the Building Faster Fund, Ontario has been expanding its support through the Municipal Housing Infrastructure Program (MHIP). Recently increased to $4 billion, the program provides direct funding for infrastructure projects that help unlock housing supply.
London has already received more than $42 million through MHIP, money that supported projects tied to more than 22,500 new homes. Neighbouring Middlesex County received $26 million through the same program to facilitate construction of over 4,000 homes.
“London has a steadily increasing population and I am proud of the work we have done to build across our city in response to the growing demand for more homes,” said London Mayor Josh Morgan. “This investment in critical housing-enabling infrastructure by Premier Ford and Minister Flack will support our efforts to grow and ensure we remain an attractive place to live, work and raise a family.”
Legislative Push to Streamline Development
The funding announcement also coincides with the province’s introduction of the Protect Ontario by Building Faster and Smarter Act, 2025, which seeks to further cut approval timelines and reduce costs in partnership with municipalities.
Rob Flack, Minister of Municipal Affairs and Housing, credited London for taking what he called “bold action” to deliver results.
“I want to thank Mayor Morgan and London City Council for stepping up and taking bold action to get shovels in the ground faster,” Flack said. “Our government is making historic infrastructure investments and using every tool in our toolbox to help municipalities build more homes and keep the dream of homeownership alive for families across Ontario.”
Rental Market Growth and Extended Deadlines
The province highlighted a surge in rental construction as further evidence of progress. Between January and July 2025, Ontario recorded 12,175 rental housing starts — a 21 per cent increase compared to the same period last year, marking the highest level of rental starts on record for that time frame.
To give municipalities more flexibility, Queen’s Park is also extending the deadline for spending Building Faster Fund allocations to 2028, allowing cities to plan larger, longer-term projects.
Broader Context
London’s recognition comes as municipalities across the province face pressure to meet ambitious housing targets tied to Ontario’s pledge to build 1.5 million homes by 2031. Rising population growth, driven by both immigration and internal migration, has intensified the need for faster construction, particularly in mid-sized cities like London.
By rewarding municipalities that hit their targets, the province hopes to create a model where local governments are not only pressured but also financially supported to deliver results.
With nearly $12 million now flowing to London, city officials will have new resources to support infrastructure projects underpinning housing development. For residents, the funding signals continued investment in growth at a time when affordability and supply remain among the region’s most pressing challenges.
