The City of Mississauga has received $28.2 million from the federal government through the Housing Accelerator Fund to support ongoing efforts to increase housing supply and improve affordability. The funding represents the third installment provided to the city through the program and brings the total amount of federal housing support received under the initiative to more than $84 million.
The Housing Accelerator Fund is designed to help municipalities speed up the construction of new homes by supporting housing enabling infrastructure and removing barriers to development. Mississauga officials say the latest funding will help advance several programs aimed at increasing the number of housing units built across the city.
Part of the funding will be used to support grants available through the city’s Affordable Rental Housing Community Improvement Plan under its multi residential development stream. The program offers incentives to private sector and non profit developers to move forward with rental housing projects that include affordable units and are ready to begin construction.
City officials also plan to use the funding to offset financial shortfalls caused by reductions to development charges and municipal fees. Mississauga recently expanded its development charges incentive program to provide stronger incentives for purpose built rental apartments. The goal is to encourage developers to begin construction on projects that can help address housing shortages.
Mississauga has introduced a number of policy changes in recent years aimed at stimulating housing construction. In January 2025, following recommendations from the Mayor’s Housing Task Force, the city became one of the first municipalities in Ontario to reduce or eliminate development charges for certain residential housing projects.
Additional initiatives include tax relief measures for new multi residential developments. Peel Region approved the creation of a new municipal property tax subclass that offers a 35 percent tax reduction for eligible rental housing developments, a move intended to encourage the construction of more purpose built rental buildings.
The city has also introduced incentives to support additional residential units and fourplex developments. Through its gentle density incentive program, Mississauga offers grants that help cover city fees and development charges where applicable. Residents can also access free pre approved garden suite design plans through a partnership with the federal government’s Housing Design Catalogue initiative.
Mississauga has also updated its Official Plan and zoning bylaws to allow fourplex housing, semi detached homes, and homes built on smaller lots in residential neighbourhoods. These changes are intended to make it easier to build more housing options across the city.
Another key initiative involves simplifying planning approvals for housing projects located near major transit routes. The city is moving forward with plans to pre zone lands located within Protected Major Transit Station Areas. Officials say Mississauga is among the first municipalities in Ontario to implement zoning changes at this scale, which could help accelerate new housing construction while ensuring development aligns with the city’s long term planning vision.
Federal Housing and Infrastructure Minister Gregor Robertson said the Housing Accelerator Fund is designed to support locally driven solutions that help communities respond to housing pressures and homelessness. According to Robertson, Mississauga’s latest funding installment reflects progress made through the city’s Housing Action Plan and supports long term housing growth.
Mississauga Mayor Carolyn Parrish said the city has taken proactive steps to expand housing supply and address urgent housing needs. She added that the Housing Accelerator Fund has played a key role in advancing these initiatives and emphasized that predictable long term funding from both federal and provincial governments will remain essential for cities working to build more housing and support growing populations.
