Provincial funding recognizes city’s progress in exceeding housing targets and supports future infrastructure needs
Thunder Bay recorded 243 new housing starts in 2025, surpassing its annual target by 10 per cent
Investment is part of Ontario’s broader strategy to accelerate housing construction and strengthen communities
THUNDER BAY — The Ontario government is providing the City of Thunder Bay with $709,280 through the third round of the Building Faster Fund, recognizing the municipality’s progress in advancing housing development and exceeding its provincially assigned housing target.
The funding follows a strong year of housing activity in Thunder Bay, where the city broke ground on 243 new homes in 2025, surpassing its annual target by 10 per cent. The provincial investment will support local infrastructure projects and housing-enabling initiatives as Ontario continues efforts to increase housing supply, support economic growth and keep workers employed.
“We’re focused on getting more homes built across Ontario, and that means recognizing municipalities that are stepping up and delivering results,” said Graydon Smith, Associate Minister of Municipal Affairs and Housing. “Thunder Bay has exceeded its target, and this funding will help ensure the infrastructure is in place to keep building and support continued growth.”
The Building Faster Fund, announced in August 2023, is a three-year program valued at up to $1.2 billion. The initiative provides financial support to municipalities that demonstrate meaningful progress toward meeting provincial housing targets, with funding directed toward infrastructure required to accommodate new homes and expanding communities.
Thunder Bay’s latest allocation reflects the province’s approach of rewarding municipalities that help accelerate residential construction while ensuring communities have the infrastructure needed to support population and economic growth.
“We continue to be grateful to the Ontario government for the funding provided through the Building Faster Fund and are proud of what we’ve been able to accomplish with it,” said Ken Boshcoff, Mayor of Thunder Bay. “These funds have helped us not only build more homes in the short-term but also set a foundation that will allow our community to continue to grow into the future.”
The province said the investment is part of a wider package of housing measures designed to reduce barriers to development and encourage faster construction timelines. Ontario has recently introduced legislative measures, including the Building Homes and Improving Transportation Infrastructure Act, 2026, and the HST Relief Implementation Act (Residential Property Rebates), 2026, aimed at streamlining approval processes and reducing unnecessary costs associated with development.
As part of the up to $8.8 billion Canada-Ontario Partnership to Build, the province has also launched the Development Charge Reduction Program. The 10-year program will provide funding for housing-related infrastructure projects, with priority given to municipalities that reduce and maintain lower development charges.
The partnership also includes support for removing the HST on new homes from April 1, 2026, to March 31, 2027. According to the province, the measure could save homebuyers up to $130,000 on the purchase of a new home, helping improve affordability while supporting builders and construction workers.
Ontario said housing construction continues to show positive momentum across the province. Between January and May 2026, Ontario recorded 26,084 total housing starts, representing a 17.2 per cent increase compared with the same period in 2025. During the same timeframe, rental housing starts reached 13,599 units, an increase of 94.9 per cent year over year and a record level for the first five months of a year.
To provide municipalities with additional flexibility, the provincial government is also extending the deadline for municipalities to use Building Faster Fund allocations until 2028. The extension is intended to help communities complete infrastructure projects that support additional housing opportunities.
Ontario is also investing more than $65 million in municipalities across the Thunder Bay District through the Municipal Housing Infrastructure Program, which is expected to enable the development of more than 1,000 new homes. The City of Thunder Bay is receiving more than $28 million from that program.
“As Thunder Bay continues to grow and prepare for future opportunities, this funding will help support the development of new housing and the infrastructure needed to build a stronger community. By exceeding its housing target, the city has demonstrated its commitment to responsible growth, and I look forward to seeing the positive impact this investment will have for residents today and in the years ahead.”
— Kevin Holland, MPP for Thunder Bay–Atikokan
The province said investments such as the Building Faster Fund are designed to help municipalities expand housing capacity while ensuring communities have the infrastructure and services required for long-term growth.