Oakville to lose federal housing funding if it fails to keep to promise

Oakville could be the first city in Canada to lose $25 million in federal funding if it doesn’t live up to the promises its mayor made to the federal government including “personal assurances” that he would help to bring in gentle density policies including fourplexes across the city, according to a letter sent to Oakville mayor from the federal housing minister this week.

 

Minister Sean Fraser sent a sharply worded letter to Oakville Mayor Rob Burton on Thursday, obtained by the Star, which expresses disappointment with the mayor for rejecting a recent motion in council to introduce gentle density measures, including four-unit dwellings on a single lot and greater densification near the local Sheriden College.

 

“You gave me personal assurances that you were sincerely looking to partner, and to improve the availability of housing in your community,” Fraser writes in the letter. “I was disappointed to see council reject the amendments which would have permitted gentle density in Oakville, as is required under our Housing Accelerator Fund (HAF) agreement.”

 

“As a result of voting down the zoning reforms you had committed to, Oakville is now at risk of becoming the first HAF recipient in Canada to have breached its agreement and is jeopardizing its funding.”

Last year, the federal government initiated a $4-billion federal program aimed at accelerating the supply of affordable homes — and has given money to dozens of cities to to push forward progressive housing policies. This could be the first time a city has pushed back on the conditions to get that funding, despite a binding agreement.

 

Earlier this month, Oakville council voted 14-1 against the proposals to allow four homes on a single lot as of right and create a new Sheridan College housing area to allow four-storey apartments within 800 metres of the college, after local residents expressed concerns the policies would change the character of established neighbourhoods.

 

“We don’t need to risk our neighbourhoods livability for the small amount in the housing accelerator fund grant,” said Burton at the council meeting where he brought in the motion to reject the gentle density policies. “Thanks to our financial strength, we don’t have to accept a bad deal. We can say no to the HAF conditions.”

 

In an email to the Star, Burton added that the town has already exceeded “our growth targets, we already have gentle density and the missing middle across our town, and we already have three units as of right (we think that’s enough),” he said. “We seem to have a federal government that wants to play boss rather than partner when what we need is a partner who respects the experience and expertise of municipalities who are making real progress on the problem.”

 

But when asked at the meeting by local councillor Sean O’Meara, if the mayor had signed any agreements with the federal government, Burton said that he couldn’t share as he was bound by a nondisclosure agreement.

 

But in his letter, Fraser says “no such (nondisclosure) agreement exists, and it is deeply concerning that the agreement was concealed from council, as they were seemingly unaware that the vote had implications on the $25 million dollars destined for Oakville.”

 

Burton said that he referred to the contract as confidential after being reminded by the town’s CAO that there were requirements in the agreement that required the city to ask for federal permission before making the agreement public. “If that clause can’t be called ‘nondisclosure,’ I regret using that phrase in the press of the moment,” he said.

 

Coun. O’Meara says, while some of the conditions of the funding were known, councillors did not know that the mayor had already signed off on a deal. He plans to file an integrity commissioner complaint to find out why the mayor wasn’t transparent with council members.

 

“You say something to the minister, you sign a legal agreement, then you turn around and do an end run on it, it just doesn’t make sense,” he said.

 

O’Meara says the city has already received $1.2-million — or around 5 per cent — in upfront funding from the federal government, and it’s unclear if it will have to give it back if the deal sours.

He says the city is looking at a lot of infrastructure costs down the road and “for the mayor to say we have the money, we’re good. That’s just not true. No municipality has all the money they need to accommodate the growth and asset management that is coming.”

 

In a statement, a spokesperson for Fraser said “Oakville will be in breach of their HAF agreement if they do not adopt the reforms promised by the deadline. To be specific, if they do not adopt a four units as-of-right zoning policy before May 23, 2024, they will be falling short of their commitments under the agreement,” said Micaal Ahmed for the minister.

 

If that is breached, the federal government could terminate the agreement and ask for monies already paid out to be repaid, said Ahmed.

 

O’Meara says the only way the deadline could be met is if the mayor uses his strong mayors to push through the policies.

 

Burton said given the overwhelming rejection by council of the fourplex and density requirements, “it’s doubtful that council will change its decision.”

 

 

 

This article was first reported by The Star