Ontario increases funding subsidy supports for LTC home construction
The Ontario government is increasing its funding subsidy to support the cost of building or redeveloping a long-term care home.
The government says the additional funding will help fast-track the construction of new long-term care beds before August 31, 2023, and is part of the province’s $6.4-billion commitment to build more than 30,000 net new beds by 2028 and 28,000 upgraded long-term care beds across the province.
“Construction costs and long-term borrowing interest rates have escalated over the past few years. These financial barriers mean many long-term care projects have stalled before reaching the construction phase,” said Long-Term Care Minister Paul Calandra. “Increasing the construction funding subsidy will help move the construction of much-needed long-term care homes forward, resulting in the start of construction for thousands of new long-term care beds across the province by the end of next summer.”
Eligible projects that start construction by August 31, 2023, will receive an additional construction subsidy of up to $35 per bed, per day for 25 years. In addition, eligible not-for-profit applicants will be able to convert up to $15 of the supplemental funding into a construction grant payable at the start of construction, to increase projects’ upfront equity and enable them to secure financing.
Eligible operators who wish to apply for the supplemental construction funding subsidy increase must submit a statement of readiness by December 20.
“These actions represent a game-changing opportunity for not-for-profit homes. By helping homes secure the financing they need, these changes will help build more beds and strengthen our long-term care system,” said Calandra.
Without additional funding, many projects will face ongoing delays and may not be completed. Together, these initiatives will reduce barriers to starting construction and help accelerate long-term care development across the province.
To date, the province has 31,705 new and 28,648 upgraded beds in the planning, construction and opening stages of the development process.