Plans to build housing in Windsor using money from the federal government's Housing Accelerator Fund have been dashed.
On Wednesday, Mayor Drew Dilkens received a letter from federal Housing Minister Sean Fraser to say that Windsor's application for funding has been rejected.
"In light of the recent decision by Council to stop short of the best practices we published to encourage cities to increase their ambition in their applications to the fund, and in the presence of applications from neighbouring cities that are determined to meet those standards, I cannot approve Windsor's application," Minister Fraser's letter said.
Fraser explained that Windsor's City Council passed a motion that didn't meet the standards that the two sides had discussed in previous meetings.
"The economic boom that is happening in Windsor right now is inspiring, and demonstrates Canada's enormous potential for economic growth in the years ahead," Fraser said. He added that significant federal investments are part of the city's revitalization.
"Unique housing challenges come with this extraordinary economic renewal," he said.
"Despite a 2023 housing target of permitting 953 units, the City only permitted 346. This represents only 36 per cent of its target." Fraser explained as a reason for not approving the city's application
He also cited the more than 6,000 people on the waiting list for affordable housing, the rising rent prices due to low vacancy rates, and Windsor's unwillingness to end exclusionary zoning or build taller, multi-unit housing on residential lots.
"Choosing not to implement the best practices we have outlined or to adopt the recommendations of Ontario's Housing Affordability Task Force is well within the decision-making power of City Council. However, there is no obligation on the federal government to support proposals that do not meet the very high standard set by other applicants to the same fund, who have chosen to adopt the measures included in those documents," Fraser concluded.
The Minister added that his team hopes to support more home construction in Windsor through other federal funds.
On Wednesday night, Mayor Dilkens issued a response to the Minister's decision on social media.