New Federal Agreement to Fast Track 1,200 Housing Units in Kitchener

By Slonee Malhotra and Ashley Hizo

On November 3, 2023 the Government of Canada and the City of Kitchener announced that they had reached an agreement to provide funding to Kitchener to fast track over 1,200 housing units over the next three years and over 37,500 housing units over the next decade. This agreement aims to address the ongoing housing availability and affordability crisis.

The $42 million agreement is made under the federal government’s Housing Accelerator Fund, a fund that encourages initiatives to increase the housing supply and promote the development of affordable communities.

The Housing Accelerator Fund aims to cut red tape and fast track new homes across Canada. It calls for action plans from local government, where once approved, provides upfront funding to fast track the building of new homes. The goal of the Housing Accelerator Fund is to implement structural and lasting reforms that will increase the supply of housing.

The recent agreement in Kitchener specifically encourages high and medium density around Kitchener’s Light Rail Transit stations by making planning regulations more permissive. Over the next 3 years, the agreement will incentivize the creation of 777 medium and high-density housing units around ten ION Light Rail Transit stations in the city.

The announcement of this agreement to fast-track comes after surrounding motions regarding several city initiatives to support the constructions of fourplexes in low density residential zones. The City of Kitchener passed their motion on October 16, 2023. The City of Guelph passed their motion on October 17, 2023. The City of Waterloo passed their motion on October 30, 2023.

As a result of the passing of these motions, Kitchener, Waterloo and Guelph now allow up to four residential units and four storeys in low-density areas without the need for a separate bylaw amendment permit, thus speeding up the construction process. 

To tackle the ongoing housing availability and affordability crisis, governments need to look at different options to meet housing needs. As the city and region continues to grow, the recent announcement to fast-track housing units and the passing of motions to support the constructions of fourplexes could not come at a better time.

For questions related to this article or legal assistance regarding a real estate matter, please reach out to one of our experienced real estate lawyers as well as the Condo Development Team at SorbaraLAW.