The project includes construction of a new building in downtown Toronto to replace existing facilities for patients with complex mental illness.

They say that qualifying for a piece of the $1.2-billion fund should be based on how many building permits they approve, rather than being based on housing starts.

A major report by city staff in Toronto takes calls for new affordable housing builds – and billions of dollars’ worth of support from the federal and provincial governments.

Ontario has applied to the Federal Court for judicial review relating to both projects, and is asking that court to nullify the federal act.

After five months of declines, investment in residential building construction rose 1.6% to $11.9 billion in August. Non-residential investment was largely unchanged.