Mayor abandons homebuyer incentive announced in State of the City Address, seeks options council might support

An ambitious home ownership incentive program has failed to gain support at council. CTV London's Daryl Newcombe reports.

Unable to drum up sufficient support among members of council, Mayor Josh Morgan has walked away from his proposal for a home ownership incentive program that was a focus of his 2026 State of the City Address.

On Tuesday, the Strategic Priorities and Policy Committee considered a staff report that responded to a strong-mayor direction develop a financial incentive that would have covered development charges on newly built homes sold this year below the average market price of $630,646.

The forgivable loan would have tapped into London’s federal Housing Accelerator Funds to cover 60 per cent of the DCs, and the London Home Builders’ Association would cover the remaining 40 per cent.

Total savings would range from about $21,000 for row housing to almost $51,000 for single detached homes.

Following a market analysis and consultation with stakeholders, the staff report recommended a number of criteria be added to the program, that would reduce the number of eligible homes from 467 to 282.

“Any additional criteria could certainly make this program more challenging, and could limit the potential pool of eligible candidates,” warned Jared Zaifman, CEO of the London Home Builders’ Association.

“The more handcuffs you put on it, the less chance the program will have success,” added Mike Wallace, CEO of the London Development Institute.

Morgan acknowledged the proposal would not generate enough support from council without significant changes.

“I’m not sure we can cobble together a majority of votes on council today that would represent the original program as contemplated,” he said.

Coun. Hadleigh McAlister said there is interest in some form of incentive program but more information is needed.

“There is an appetite for a program,” McAlister said. “I think we might have different opinions in terms of where that lands, but I’d like to see a full suite of options before I make any sort of decision.”

Instead of forcing a vote, Morgan introduced an alternate motion.

A majority of councillors supported directing staff to report back on options that could incentivize housing activity during the remaining period that Housing Accelerator Fund money is available.

The report will include:

• Current progress toward targets, timing considerations, risks to achieving program outcomes, and proposed incentive options that would support housing activity within the remaining program window
• Partial (or full) development charge rebate options for new residential development, including options that could be targeted by unit type and ability to meet HAF timelines
• an enhanced Additional Residential Unit (ARU) incentive program for existing homeowners, including options to increase uptake and accelerate implementation for interior/basement and attached Additional Residential Units that can be delivered within the available timeframe
• Implementation considerations for each option, including estimated cost and number of new units expected

“The intent is to use the Housing Accelerator Funds effectively and then give staff the empowerment to come back as quick as they possibly can with some options,” Morgan explained.

He said there is urgency to ensure London qualifies for its next $20‑million allocation from the Housing Accelerator Fund.

“We’re at about 84 per cent of our global target, and we’ve got about 20 per cent of the time left,” Morgan said. “That’s tracking pretty tight, but still on track. Which is why I think we should take some additional measures.”

Asked by CTV News if walking away from the incentive program announced in his State of the City Address is a significant political defeat heading into his re-election campaign, the mayor pushed back.

“I wouldn’t say it is at all,” he said.

Morgan pointed to the city’s Office to Residential Conversion Program as an example of progress, noting London has received a total of $80 million through the Housing Accelerator Fund.

“We’ve gotten lots moving on housing, but that doesn’t mean I’m going to get everything right,” he said.

“If you actually want someone who’s not going to take risks and try something new, then I’m not the right guy for you,” Morgan added. “If you want someone who’s going to be steady in leadership, try some new things cautiously, and adjust if they don’t work out, that’s the style I bring to the office.”