Ontario Construction News staff writer
The City of Markham set a new record for building permits in 2024, issuing permits for 4,216 housing units, far surpassing the provincial target of 3,667. However, the Canada Mortgage and Housing Corporation (CMHC) recorded only 1,825 housing starts for the city in its 2024 data, exposing a significant flaw in the Province’s Building Faster Fund methodology.
“Markham has proven we can process housing applications and permits quickly,” said Mayor Frank Scarpitti. “But the current methodology for counting housing starts is short-changing municipalities like ours. Issuing a building permit is the final step in allowing construction to begin. The province should count the permits we issue toward the housing goal.”
In 2023, Markham signed a Municipal Housing Pledge, agreeing to collaborate with the provincial government to build more housing. The province also introduced the Building Faster Fund, a three-year, $1.2 billion initiative to help municipalities meet housing targets, supporting infrastructure and costs related to community growth.
In response, Markham has streamlined its approvals process through a Lean review and ongoing collaboration with the development industry to find efficiencies. The city has also updated processes in response to the More Homes for Everyone Act, 2022 (Bill 109), and the More Homes Built Faster Act, 2022 (Bill 23).
However, the city risks missing out on up to $15 million in provincial funds for 2024. The current methodology for determining funding eligibility is flawed. CMHC counts housing starts when the building’s foundation is complete, which may occur months or even years after the city issues a building permit. This delay is particularly problematic for high-density developments, which take longer to build but deliver more units.
“We’re concerned that our housing start results won’t be recognized by the province,” said Mayor Scarpitti, raising concerns that municipalities have limited control over market forces and developers’ decisions on when to begin construction. “For example, CMHC only recognizes a condo once the parking garage reaches ground level.
“The city’s approval work is reflected only years later, when the building surpasses ground level.”
Methodology for counting housing starts must be revised, he said, to ensure that cities like Markham receive the funding they are owed.
“We’ve done our part, and now we expect the province to do theirs. Our city has proven we’re doing everything necessary to deliver more housing.