City Exceeds Provincial Housing Goal by 101%, Secures Funding for New Homes and Infrastructure
SAULT STE. MARIE, Ont. — The Ontario government has awarded the City of Sault Ste. Marie $600,000 through the latest round of the Building Faster Fund after the municipality exceeded its provincially assigned housing target in 2025, reinforcing the province’s broader push to accelerate housing construction and support community growth.
The funding was announced by Ontario’s Ministry of Municipal Affairs and Housing as part of the third round of the Building Faster Fund, a program designed to reward municipalities that achieve at least 80 per cent of their annual housing targets. Sault Ste. Marie surpassed that threshold by a significant margin, breaking ground on 302 new homes last year—101 per cent above its designated target.
Provincial officials say the funding will help the city continue expanding housing supply while investing in the infrastructure needed to support population growth and economic development.
“Our government is working relentlessly to unlock housing opportunities across every corner of the province, and we appreciate the partnership of cities like Sault Ste. Marie,” said Rob Flack, Minister of Municipal Affairs and Housing. “Together, we will continue to build more homes, smarter and faster, so more families can achieve their dreams of homeownership.”
Building Faster Fund Rewards Municipal Performance
Introduced in August 2023, the Building Faster Fund is a three-year provincial initiative worth up to $1.2 billion. The program provides municipalities with funding when they make substantial progress toward provincially assigned housing targets.
The goal is to encourage local governments to accelerate residential development while ensuring communities have the infrastructure necessary to accommodate growth. Funding can be used for projects that support housing construction, including roads, water systems, and other community infrastructure.
Sault Ste. Marie has emerged as one of the stronger performers under the program, consistently meeting and exceeding housing targets over multiple years.
Third Consecutive Year of Strong Housing Performance
Mayor Matthew Shoemaker said the city’s latest achievement reflects ongoing collaboration between municipal leaders, developers, and provincial partners.
“Building more homes requires a practical, responsive approach from municipalities, and Sault Ste. Marie continues to show strong results,” said Matthew Shoemaker, Mayor of Sault Ste. Marie. “Being one of only a handful of municipalities to exceed its housing target for the third consecutive year reflects sustained progress and a shared commitment to getting more homes built. We are grateful for the support of the Government of Ontario, which continues to help make that progress possible.”
The city’s performance comes as Ontario continues to pursue its long-term objective of increasing housing supply across the province amid ongoing affordability challenges and population growth.
Province Expands Housing Incentives and Infrastructure Support
Alongside direct funding through the Building Faster Fund, the province has introduced several legislative and financial measures intended to speed up housing development.
Ontario recently passed the Building Homes and Improving Transportation Infrastructure Act, 2026, and the HST Relief Implementation Act (Residential Property Rebates), 2026. Provincial officials say these measures are designed to streamline development approvals, reduce costs, and accelerate construction timelines.
The province is also advancing the Canada-Ontario Partnership to Build, an initiative valued at up to $8.8 billion. As part of that agreement, Ontario has introduced the Development Charge Reduction Program, which will provide funding for housing-enabling infrastructure projects over the next decade.
Municipalities that reduce and maintain lower development charges will receive priority access to the funding, creating additional incentives for communities seeking to attract new residential development.
Another key measure includes the temporary removal of the HST on new homes between April 1, 2026, and March 31, 2027. The province estimates the rebate could save homebuyers up to $130,000 on the purchase of a newly built home.
Housing Construction Accelerates Across Ontario
Provincial housing data suggests momentum is building across Ontario’s residential construction sector.
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 activity showed 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 Algoma District, Ontario has committed more than $37 million through the Municipal Housing Infrastructure Program to support housing-related infrastructure projects expected to enable more than 10,000 new homes. More than $15 million of that investment has been allocated to Sault Ste. Marie.
Local Representatives Welcome Funding
Provincial representatives for the region praised the city’s housing achievements and the impact of continued investment.
“The City of Sault Ste. Marie is taking action to build more homes and support its growing community. 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.”
— Matthew Rae, Parliamentary Assistant to the Minister of Municipal Affairs and Housing
“Congratulations to the City of Sault Ste. Marie for supporting its growing community by creating more housing opportunities for individuals and families through the Building Faster Fund. These efforts will help more residents achieve the dream of homeownership while contributing to the city’s continued growth, prosperity, and long-term success.”
— Bill Rosenberg, MPP for Algoma-Manitoulin
As Ontario continues to prioritize housing supply and affordability, Sault Ste. Marie’s performance under the Building Faster Fund highlights how municipalities that exceed housing targets are being rewarded with additional resources to support future growth.