Affordable housing programs in Ontario are funded by all three levels of government, but municipalities—local taxpayers—pay most of it. A report by Ontario’s Financial Accountability Office shows that 20 years ago, in 2004-5, municipalities paid 57 per cent of the total and in 2024-5, that had risen to 62 per cent, while federal contributions had fallen to 26.5 per cent and the provincial share had risen a bit to 11.8 per cent.
Over the past 20 years, total spending on affordable housing programs, in inflation-adjusted dollars, peaked 2009-10 and 2010-11 and had declined by a third by 2024-25. The peak two years were a rare time when combined federal and provincial contributions were greater than what municipal taxpayers paid.
The report covered the main subsidized housing pro grams, including the construction of below-market rent housing, rent supplements, rent-geared-to-income assistance and homeownership assistance. Homelessness and Indigenous programs are not included.
Ontario is the only province where municipalities are responsible for social housing costs, the result of a decision by the Harris government in the 1990s. Greg Suttor, one of the leading experts on social housing, argues that the costs should by borne by the federal and provincial governments. He says those governments have much greater ability to raise money to pay for such programs than municipalities that can raise money only through property taxes and fees. Plus the senior governments have the responsibility for programs that redistribute income.