Building Faster Fund Rewards Municipalities for Exceeding Housing Targets
ST. CATHARINES, Ont. — The Ontario government has awarded more than $4.5 million to the cities of St. Catharines and Welland through the latest round of the Building Faster Fund, recognizing the municipalities for making significant progress toward provincial housing construction goals.
The funding, announced by the Ministry of Municipal Affairs and Housing on June 17, comes as Ontario continues efforts to accelerate homebuilding and address growing housing demand across the province. The two Niagara-region municipalities collectively received $4,506,730 after breaking ground on more than 1,500 housing units in 2025.
The Building Faster Fund provides financial incentives to municipalities that achieve at least 80 per cent of their provincially assigned housing targets. The program is intended to help communities invest in infrastructure and services required to support new residential development.
“Ontario continues to grow, and we appreciate partners like St. Catharines and Welland who are committed to meeting the increased demand for more housing,” said Rob Flack, Minister of Municipal Affairs and Housing. “Our government will continue exploring ways to support municipalities in getting more shovels in the ground, including through initiatives such as the recently announced Development Charge Reduction Program.”
Under the third round of funding, St. Catharines received $2,837,413 after achieving 97 per cent of its housing target and breaking ground on 1,064 new housing units. Welland was awarded $1,669,317 after exceeding its housing target by 23 per cent and starting construction on 528 new housing units.
Infrastructure Investments Support Long-Term Growth
Municipal leaders said the funding will help offset the costs associated with accommodating population growth and expanding housing supply.
“St. Catharines is proud to have qualified for Building Faster Fund support for the third consecutive year, reflecting our commitment to building more homes for our community,” said Mat Siscoe, Mayor of St. Catharines. “Amidst challenging market conditions, this funding has supported strategic infrastructure investments, such as improvements to Ontario Street, the Turner and Phelps area, and our sanitary and storm sewer CCTV inspection programs, that help support our long-term growth. We are grateful to the Ontario government for its continued partnership and support as we invest in the infrastructure needed to accommodate growth, strengthen our neighbourhoods, and build a more resilient and prosperous community for residents today and for generations to come.”
Welland Mayor Frank Campion said the funding will help the city improve critical infrastructure while reducing pressure on local taxpayers.
“I would like to thank the Minister for this funding,” said Frank Campion, Mayor of Welland. “It will enable Welland to improve and expand critical infrastructure, without having the ratepayer shoulder the full burden of growth-related costs. We are proud to have qualified for funding for the third year in a row by exceeding our housing targets each year, and we appreciate Premier Ford and the Ontario Government stepping up to the plate to assist.”
The Building Faster Fund was launched in August 2023 as a three-year program worth up to $1.2 billion. The initiative rewards municipalities that demonstrate measurable progress toward housing targets by helping finance infrastructure needed for new developments and growing communities.
Province Expands Housing Incentives and Infrastructure Support
The funding announcement comes as Ontario continues introducing measures designed to stimulate residential construction and improve housing affordability.
The provincial government recently passed the Building Homes and Improving Transportation Infrastructure Act, 2026 and the HST Relief Implementation Act (Residential Property Rebates), 2026, both aimed at reducing development barriers and lowering costs for builders and homebuyers.
Ontario has also launched the Development Charge Reduction Program as part of the up to $8.8-billion Canada-Ontario Partnership to Build. The program will provide funding for housing-enabling infrastructure projects over the next decade, with priority given to municipalities that reduce and maintain lower development charges.
In addition, the province says the temporary removal of the HST on new homes between April 1, 2026, and March 31, 2027, could save homebuyers as much as $130,000 on the purchase of a new home.
Provincial officials argue that these initiatives will help improve housing affordability, encourage new residential construction and support employment in the construction sector.
Recent housing data suggests activity is accelerating across Ontario. From January to May 2026, the province recorded 26,084 housing starts, a 17.2 per cent increase compared with the same period in 2025. Rental construction showed particularly strong growth, with 13,599 rental housing starts during the first five months of the year, up 94.9 per cent from a year earlier and marking a record level for that period.
Matthew Rae, Parliamentary Assistant to the Minister of Municipal Affairs and Housing, said the province remains committed to supporting municipal housing efforts.
“St. Catharines and Welland are taking action to build more homes and support their growing communities. Our government is committed to working alongside municipalities by making housing-enabling investments and providing the tools they need to get more homes built faster. Together, we are helping create more housing opportunities for families across Ontario.”
Niagara West MPP Sam Oosterhoff said the investment is intended to help future homebuyers in the region.
“We are keeping the hope of homeownership alive for young people in Niagara and across Ontario. Today’s significant investment by our government in housing-enabling infrastructure for the cities of St. Catharines and Welland will help the next generation in our region achieve the same dream of homeownership as the last.”