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HomeMy WebLinkAboutFSD-020-26 Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Planning and Development Committee Date of Meeting: May 11, 2026 Report Number: FSD-020-26 Authored By: Planning and Infrastructure Services Staff Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Darryl Lyons, Deputy CAO, Planning and Infrastructure Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: Building Faster Fund Update Recommendations: 1. That Report FSD-020-26, and any related delegations or communication items, be received; 2. That the projects identified in Report FSD-020-26 be approved pending Province of Ontario approval of the required 2026 investment plan; and 3. That all interested parties listed in Report FSD-020-26, be advised of Council’s decision. Municipality of Clarington Page 2 Report FSD-020-26 Report Overview In November 2025, the Municipality received Building Faster Fund (BFF) funds for the 2024 fiscal year. These funds are required to be spent on eligible expenditures by March 2028. This report identifies several projects that meet the criteria of the BFF and could be delivered within the required timeframe. Any project must be approved by the Province of Ontario. Staff have reached out to the Province to ensure that the proposed projects meet the criteria and would be eligible. Staff are seeking Council’s endorsement of the projects to formally submit to the Province and then proceed with completion. The proposed specific projects in this report are intended to fully utilize these funds in eligible projects. 1. Background 1.1 The Municipality received funding from the Build Faster Fund (BFF) in the amount of $2,877,680 for achievement of its 2024 housing target. These funds were confirmed in November 2025 and the Municipality has until 2028 to utilize the funds. 1.2 Each year the Municipality must provide an investment plan to ensure that the projects utilizing the BFF are eligible and approved by the Province of Ontario. 1.3 The Province required an initial investment plan in 2025 recognizing that it was late in the year and advised Staff that projects could be added, or removed as part of the 2026 investment plan. Staff provided some projects to determine the potential range of eligibility and the Province approved use of the funding for the Courtice Shores Drive and CN Rail Grade Crossing, Former Newcastle Firehall Land Remediation, and the use of funds for any Development Charge eligible project that supported increasing the supply of housing. Eligible Expenditures 1.4 Capital expenditures on housing-enabling core infrastructure and site servicing to accommodate future residential development. This may also include capital maintenance for renewal, rehabilitation and replacement of core infrastructure to preserve existing housing supply or site servicing/preparation costs for the direct creation of more housing. 1.5 Operating or capital expenditures that support the creation of net new affordable housing. Expenditures must have a net new effect on affordable housing stock. 1.6 Operating or capital expenditures that support the creation of new attainable ownership housing, including through modular construction. 1.7 Capital expenditures for homelessness services centers. This could be either shelter space or municipal homelessness service hubs. Municipality of Clarington Page 3 Report FSD-020-26 2. Proposed Projects Courtice Shores Drive and CN Rail Grade Crossing 2.1 Through report PSD-002-26 Courtice Waterfront Secondary Plan Recommendation Report, Council provided approval for the use of $500,000 for the environmental assessment to determine transportation improvements that may be required to facilitate access to the Courtice Waterfront Park and to unlock housing in the Courtice Waterfront Secondary Plan. 2.2 Safe, unobstructed, secondary emergency access for the development lands is needed, particularly as access is restricted via the waterfront and the limited existing surrounding road network. 2.3 To ensure this secondary emergency access, Staff have undertaken a technical feasibility assessment of modifying (lowering) Courtice Shores Drive through the CN underpass to achieve required access clearance requirements for emergency vehicles to the Courtice Waterfront Secondary Plan area. The assessment demonstrated that the modification is feasible with a reduced total project cost and time to completion compared to the implementation of a new grade separated crossing over the CN corridor. 2.4 Staff are requesting that an additional $500,000 be allocated to this project, for a total allocation of $1,000,000. This would allow for the immediate advancement of the project and retention of consultants to complete all required studies, stakeholder engagement, and detailed design to advance the project to a tender-ready stage. An allocation of $1,000,000 positions the project for the most efficient execution and ensures continuous progress. 2.5 This project had been provided to the Province as part of the 2025 initial investment. The project was approved for $500,000, and the additional requested allocation, if approved by Council, would be included as part of the upcoming 2026 Investment Plan. Former Newcastle Firehall Land Remediation 2.6 This project proposes remediation of the vacant former Newcastle Firehall lands located at 247 King Avenue East to prepare the land for disposition to enable housing on the site that supports Clarington’s housing target and regeneration of these lands. Previous environmental investigation determined that past uses of the property have led to contamination of the underlying soils and have made the property unsuitable for sensitive land uses. 2.7 To prepare the property for future development the contaminants / contaminated soils will need to be removed from the property and properly disposed. Costs and risks associated with site remediation are generally prohibitive for developments. Municipality of Clarington Page 4 Report FSD-020-26 Utilization of BFF funding up to $1,000,000 would allow for immediate advancement of the required environmental studies, development of a remediation plan, and construction to ready the site for disposition and development, therefore unlocking new housing opportunities in Newcastle 2.8 Recent public-realm improvements in Newcastle, including enhanced streetscape design, upgraded pedestrian connections, and investments that have strengthened the walkability and vibrancy of the village core, further position this site as a strong candidate for new housing units. The property’s central location, proximity to amenities, and integration with an increasingly walkable main street environment make it well-suited for residential intensification. Bringing this site forward for redevelopment would contribute meaningfully to achieving Clarington’s 13,000-unit housing pledge, while supporting growth in an area that is already benefiting from coordinated municipal investment. 2.9 To prepare the property for future development the contaminants / contaminated soils will need to be removed from the property and properly disposed. Costs and risks associated with site remediation are generally prohibitive for developments. Utilization of BFF funding up to $1,000,000 would allow for immediate advancement of the required environmental studies, development of a remediation plan, and construction to ready the site for disposition and development, therefore unlocking new housing opportunities in Newcastle. 2.10 This project had been provided to the Province as part of the initial 2025 investment plan and was approved for use of the BFF funding. If approved by Council, this project would be carried forward into the 2026 Investment Plan. Durham County Seniors Citizen Lodge Expansion 2.11 The Durham County Senior Citizen Lodge (“the Lodge”), located within the Municipality of Clarington, is proposing a significant expansion of its facility. The Lodge currently has 41 one-storey residential units, a community centre, a garage and approximate 55 parking spaces. The proposed expansion would provide for an additional 58 single- bedroom units and an updated septic system which would support the new and existing units. 2.12 According to the Lodge, these units will be ‘affordable’ and provided at or below CMHC’s Average Market Rent (AMR). In Clarington, the latest CMHC AMR (2024) is a maximum of $1,563/month. This rent CMHC (AMR) is also slightly less than the $1,567/month for Clarington as produced in the Province of Ontario Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin. 2.13 The proposed expansion would provide the Durham County Seniors Citizen Lodge with a total of 99 units, thus increasing the supply of affordable housing options in Clarington and supporting seniors aging within their community, close to established social networks, services, and supports. The project aligns with both municipal and regional priorities related to housing affordability and aging in place. Municipality of Clarington Page 5 Report FSD-020-26 Request for Municipal Support 2.14 The Lodge made a delegation at Planning and Development Committee on March 9, 2026 seeking financial assistance to advance the proposed development. The request sought waiving of the Planning Act application fees for a Zoning By-law amendment and Site Plan; waiving of the Building permit fees and a letter of funding intent, but did not have any specific amount. At a meeting held on March 23, 2026, the Council of the Municipality of Clarington approved the following Resolution #PD-031-26: “That the delegation by Ron Hooper, Lisa Roy, and Tim Welsh, Durham Senior Citizens Lodge regarding, a request to Waive Fees for the Non-Profit Seniors Intensification Housing Project, be received with thanks; That this project be referred to Staff to work through the logistics of the request and bring it back to Council; and That Clarington Council supports the project in principle.” 2.15 Through meetings between Staff and the Lodge it was confirmed that the Lodge is seeking approximately $105,000 for waiving of the planning fees for the required zoning by-law amendment and site plan applications and a grant-in lieu of the Building permit fee. 2.16 The Lodge is also requesting approximately $255,000 that is intended to help offset upfront development-related costs, including architectural and engineering consulting work, detailed septic design, and other technical studies required to move the project forward. This support would help reduce early-stage financial pressures and allow the Lodge to continue progress of the project. 2.17 The Building Faster Fund (BFF) could be used to support this initiative, as the proposed work includes infrastructure improvements necessary to accommodate growth—specifically, the replacement of the existing septic system that must be completed before additional affordable units can be developed. Municipal support through the BFF would enhance the financial viability of the project and reinforce Clarington’s commitment to enabling new affordable housing options for vulnerable and fixed-income seniors. Municipal Contribution 2.18 Staff are proposing that Council could support the allocation of $360,000 to assist with the expansion of the Durham County Senior Citizen Lodge in Orono that will increase the supply of affordable units and contribute to meeting Clarington’s provincial housing pledge of 13,000 units by 2031. Municipality of Clarington Page 6 Report FSD-020-26 2.19 The requested funding would address key project needs, including: • Supporting architectural, engineering, septic design, and other technical work required to advance the project. • Reducing upfront development costs to improve the financial viability of the expansion. • Enabling the replacement and upgrading of the septic system, which is essential not only for accommodating the new units but also for maintaining the long-term viability of the existing 41 units. • Helping the Lodge leverage additional funding sources and advance a shovel-ready project that aligns with municipal housing priorities and provincial housing-supply targets. 2.20 Staff have contacted the Province regarding eligibility of this potential project under the BFF and have received a favourable response that it would meet the criteria for inclusion in the 2026 investment plan. Other Eligible DC Projects 2.21 Staff propose to use any remaining BFF funds for eligible DC projects from out-years that could be accelerated and prioritized earlier than originally planned. The strategy of using BFF funds for DC projects that could be brought forward had been provided to the Province as part of the initial 2025 investment plan and was approved for use of the BFF funding. If approved by Council, these DC projects would be carried forward into the 2026 Investment Plan. 3. Financial Considerations 3.1 This report provides projects which are intended to utilize the BFF grant on eligible projects and help support housing development in Clarington. Unused funds must be returned to the Province of Ontario. 3.2 If these projects are approved for inclusion in the 2026 investment plan, utilization of the BFF grant funds will support increasing the supply of housing that provides benefits, including financially, to the community. This is a non-tax source of funding for these projects which will unlock housing opportunities and meet Council’s strategic priorities for development. Municipality of Clarington Page 7 Report FSD-020-26 4. Strategic Plan 4.1 The utilization of the BFF funds supports Priority C.2.2: Support and invest in the creation of housing to meet the needs of the community. The recommended projects in this report are intended to directly contribute to increasing the supply of housing in Clarington and advancing the Municipality’s ability to meet the housing target assigned by the Province. By enabling remediation, preparation, and advancement of key development sites, the BFF funding helps remove barriers to construction and accelerates the delivery of new units. These projects form part of the Municipality’s broader strategy to support growth, facilitate development readiness, and ensure Clarington can achieve its provincially mandated housing commitments. 5. Climate Change Not Applicable. 6. Concurrence Not Applicable. 7. Conclusion It is respectfully recommended that Council approve the recommendations in this Staff report. Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, tpinn@clarington.net Attachments: Not Applicable Interested Parties: List of Interested Parties available from Department.