Skip to content

Queen's Park promises more funding for long-term care homes

Province said additional funding will ensure that long-term care projects get built sooner despite inflation and interest rates

The Ontario Government said Friday it is stepping up construction funding subsidies to support the cost of developing or redeveloping long-term care homes.

The Ministry of Long-Term Care said the new money will help to "fast-track" the construction of long=term care facilities before August 31, 2023. A news release from Queen's Park said this would support the government’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 Paul Calandra, Minister of Long-Term Care. 

“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 said the funding will help in two ways, with subsidies paid up front when work begins and in the long term as well.

"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," said the news release.

“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.

The government statement said that without additional funding, many projects could 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.

The news was welcomed by Ontario Long-Term Care Association chair Ruth McFarlane who acknowledged that inflation and interest rates were two significant considerations. 

"Today’s announcement demonstrates the commitment made by our government to the construction of new long-term care homes and the upgrading of existing long-term care homes for our aging Ontario population. We thank the government for addressing rising construction and borrowing costs associated with the development and redevelopment of much-needed long-term care capacity," McFarlane said. 

AdvantAge Ontario, the voice for the non-profit sector, was pleased with the announcement. 

"The expansion of Ontario’s construction funding subsidy is amazing news for Ontario’s not-for-profit long-term care homes. By providing those homes with greater upfront financing, this measure could lead to thousands more not-for-profit beds,"  said Sue Graham-Nutter, board chair for AdvantAge Ontario.

 


Comments

Verified reader

If you would like to apply to become a verified commenter, please fill out this form.