Ontario is changing what developers pay to build. Feds say it means ‘higher taxes’

RELATED: The battle between the Ford and Trudeau governments continues over housing. The federal government has promised to divide $5 billion between the country's provinces and territories but only if they meet certain conditions. Global News' Queen's Park Bureau Chief Colin D'Mello has the latest.could be on another collision course over housing policy after Ontario tabled plans to change the fees municipalities are allowed to charge homebuilders.

In a continued escalation of tensions between Ottawa and Queen’s Park, the federal housing minister said getting rid of the phase-in amounted to “higher taxes” on new homes.“You can’t keep increasing taxes on homebuilding and expect to have more homes built,” Sean Fraser told Global News on Friday. “We’ve been after the federal government on this for months. We’ve been speaking to our municipal partners and the changes that we’ve made are really specifically to getting more infrastructure on the ground so we can meet our target.”over how to manage spending on affordable housing, with the federal government threatening to withhold funds after it said Ontario had failed to meet its end of the bargain.

“If you don’t get the infrastructure in the ground… it is the difference between building hundreds of homes and millions of homes across the province of Ontario,” Calandra said Monday.

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