Ontario rewards City of Waterloo with more than $3.7 million through the Building Faster Fund
The Ontario government is rewarding the City of Waterloo with $3,765,333 through the third round of the Building Faster Fund, which provides funding to municipalities that achieve at least 80 per cent of their provincially designated housing targets. In 2025, Waterloo broke ground on 1,412 new homes, achieving 88 per cent of its 2025 housing target. The funding will help the City of Waterloo build more community infrastructure needed for homes while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
“Across Ontario, there is a need for greater community infrastructure and housing of all types to
support responsible growth,” said Rob Flack, Minister of Municipal Affairs and Housing. “From initiatives such as the Building Faster Fund to the new Development Charge Reduction Program, our government will continue to work relentlessly to create the conditions needed to kickstart the local housing sector and keep the dream of homeownership alive.”
Announced in August 2023, the Building Faster Fund is a three-year, up to $1.2 billion program that helps municipalities build more homes faster. The fund rewards municipalities that make significant progress toward their housing targets by providing funding for the infrastructure needed to support new housing and growing communities. Earlier this year, the province and federal government agreed to a new Partnership to Build. Under this agreement, a combined $8.8 billion over 10 years will be delivered for housing-enabling infrastructure projects in Ontario, primarily through the Development Charge Reduction Program (DCRP). Funding through the program is being prioritized for municipalities that reduce development charges for all residential types by 30 to 50 per cent or greater and maintain the reductions for at least three years.
The two governments also agreed to provide relief on the full HST on eligible new homes from April 1, 2026 to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home. Collectively, these measures help to enhance affordability, support builders as they get shovels in the ground on new homes and keep workers on the job.
“Meeting Waterloo’s housing target is the result of a shared commitment to increasing housing supply while building complete communities,” said Dorothy McCabe, Mayor of Waterloo. “We appreciate the Province’s continued investment through the Building Faster Fund, which helps ensure the roads, parks, utilities, and community infrastructure needed to support new housing are delivered alongside growth. This funding will help Waterloo continue creating the conditions for more homes, stronger neighbourhoods, and a thriving local economy.”
The Ontario government is also helping to speed up the construction of new homes and infrastructure by streamlining development processes and reducing unnecessary costs, most recently through the Building Homes and Improving Transportation Infrastructure Act, 2026 and the HST Relief Implementation Act (Residential Property Rebates), 2026.
Quotes
“With 1,412 new homes breaking ground in 2025, Waterloo is delivering real results, and our government is proud to support that progress. This funding will help build the roads, water systems and community infrastructure needed to unlock even more housing. By investing in Waterloo, we’re supporting our growing city while advancing our plan to protect Ontario, strengthen our economy and keep workers on the job."
– Mike Harris, MPP for Kitchener – Conestoga
“Congratulations to Waterloo on securing Building Faster funding for a second consecutive year. Mayor McCabe and Waterloo City Council have demonstrated that when leadership is united around a shared goal, communities can achieve great things and build homes faster for families across our region. I am pleased that our government continues to support municipalities that are meeting their housing targets and delivering results for residents.”
– Jess Dixon, MPP for Kitchener South – Hespeler
Quick facts:
- From January to July 2026, Ontario saw 35,941 total housing starts, an increase of 6.4 per cent compared to the same period in 2025.
- From January to July 2026, Ontario saw 18,277 rental starts, an increase of 50.1 per cent compared to the same period in 2025. This is a record for rental starts for this time of the year.
- To help make way for more housing opportunities and support growing communities, the government is also giving municipalities more time to spend funds rewarded through the Building Faster Fund, extending the deadline to 2028.
- Ontario is investing over $31.4 million in municipalities across the Region of Waterloo through the Municipal Housing Infrastructure Program, which will enable nearly 18,500 new homes. This includes over $11.9 million for the City of Waterloo.
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