The federal government has demanded the small town of Oakville in Ontario to repay over 1 million dollars in funding. This funding was originally provided to support housing development.
According to reports from the Toronto Star, the Oakville town council rejected a motion to introduce “gentle density” policies, including fourplexes, into the area.
Previously, the affluent town had signed agreements with the federal government but ultimately failed to follow through.
To date, Oakville has received 1.28 million dollars in related funds.
However, the town became the first in Canada to violate the agreement by not implementing four housing units immediately and allowing higher density for building student dormitories near a local college.
Micaal Ahmed, spokesperson for the federal housing ministry, stated in an email, “Oakville is the first town to violate the agreement, the first town where we terminated the agreement, and the first town where we demanded a refund.”
This means that Oakville will forego up to 25 million dollars in federal Housing Accelerator Fund. The funds already received by Oakville are to be returned to the Canada Mortgage and Housing Corporation (CMHC).
Ahmed mentioned that a warning letter was sent to Oakville last week, highlighting the risk of losing funds, with a formal notice issued on Tuesday, May 28. Last month, the Oakville town council voted against a motion to allow the construction of four housing units and increase housing density around Sheridan College.
Due to strong opposition from local residents, Mayor Rob Burton stated that he does not want to jeopardize the community’s livability for a small amount of housing acceleration fund.
In an email on Wednesday, May 29, Mayor Burton expressed that Oakville is recognized as a leader in increasing housing supply, with over 2,700 housing units started last year.
He added, “We await the minister’s direction to repay the full 1.2 million dollars.”
Previously, Burton had mentioned that the town had already implemented “gentle density” policies, allowing for immediate construction of triplexes. He believed this was sufficient, as there was a gap between single-family homes and high-rise apartments.