Funding rewards municipalities for progress toward housing starts
KITCHENER — The Ontario government is rewarding the City of Kitchener with $8,013,600 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, Kitchener broke ground on 3,005 new homes, achieving over 85 per cent of its annual target. The funding will help the City of Kitchener build more homes and community infrastructure while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.
“Congratulations to the City of Kitchener for your efforts to get shovels in the ground,” said Rob Flack, Minister of Municipal Affairs and Housing. “In addition to the Building Faster Fund, our government continues to support municipalities in increasing their housing supply through measures like the expansion of the HST rebate and the recently announced Development Charge Reduction Program.”
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.
“Kitchener is once again setting the pace on getting homes built and I couldn’t be more thrilled to see their hard work and achievements being recognized in this way.” Said Jess Dixon, MPP For Kitchener South – Hespeler. “Mayor Berry Vrbanovic and his team have forged a level of cooperation and customer service which has been key in continually meeting their housing goals.”
“Kitchener is proud to be recognized by the Government of Ontario for the third year in a row, for our leadership in addressing the housing crisis and getting more homes built,” said Berry Vrbanovic, Mayor of Kitchener. “This investment, through the Building Faster Fund, reflects the strong commitment of Council, staff and our community to taking action, accelerating progress and delivering more housing for the residents of Kitchener. Since the program began, Kitchener has demonstrated that through strong collaboration with our provincial counterparts and a willingness to act, we can deliver housing faster. Together, we are building a city where people take care of each other and the world around us while contributing to a stronger Ontario.”
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.
As part of the Canada-Ontario Partnership to Build, Ontario has also introduced the Development Charge Reduction Program, which will deliver up to $8.8 billion over 10 years for housing-enabling infrastructure projects. Funding will be prioritized for municipalities that reduce and maintain reductions on development charges. The agreement also supports the removal of the HST on new homes from April 1, 2026, to March 31, 2027, which will save 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.
Quick Facts
- From January to April 2026, Ontario saw 20,423 total housing starts, an increase of 24.6 per cent compared to the same period in 2025.
- From January to April 2026, Ontario saw 10,272 rental starts, an increase of 93.2 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.
Quotes
“The City of Kitchener is taking action to build more homes and support a growing community. Our government is committed to working alongside municipalities by making housing-enabling investments and providing the tools they need to get more homes built faster. Together, we are helping create more housing opportunities for families across Ontario.”
– Matthew Rae, Parliamentary Assistant to the Minister of Municipal Affairs and Housing
“Our government is working closely with the City of Kitchener as they take action to build more homes, faster, in our community. This investment is yet another step we are taking to boost housing supply and help more Kitchener families achieve the dream of homeownership.”
– Mike Harris, MPP for Kitchener – Conestoga
Additional Resources
Media Contacts
Michael Minzak
Minister’s Office
Michael.Minzak@ontario.ca
Communications Branch
MMA.media@ontario.ca