TORONTO — The Ontario government has announced it is increasing its construction funding subsidy to support the cost of developing or redeveloping a long-term care home.
The funding is meant to help fast-track the construction of new long-term care beds before Aug. 31, 2023.
Eligible projects that start construction by Aug. 31, 2023, will receive an additional construction subsidy of up to $35 per bed, per day for 25 years, states a release. 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.
“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 Paul Calandra, minister of long-term care, in a statement. “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.”
The province states without more funding many projects will face further delays and may not be completed.
More information about funding for long-term care home development is available here. Eligible operators who wish to apply must submit a statement of readiness by Dec. 20, 2022.
The province adds this recent announcement supports its $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.
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