The Ontario government is more than doubling its construction funding subsidy for new and upgraded nursing homes, as it faces a looming deadline to replace outdated facilities with those that meet modern design standards.

Almost 40 per cent of nursing homes in Ontario do not meet current provincial government standards requiring residents to be housed in single- or double-occupancy rooms. Most homes were built 50 years ago when multibed wards were common across Canada. Operating licences for homes with three- and four-bed wardsexpire in 2025.

Premier Doug Ford has promised to deliver 30,000 new long-term-care beds and upgrade 28,000 outdated ones by 2028. His administration has awarded 31,705 new beds across Ontario. But many projects, particularly in the not-for-profit sector, are in limbo because the government’s funding subsidy has not kept pace with rising interest rates and construction costs.

“These financial barriers mean many long-term-care projects have stalled before reaching the construction phase,” Paul Calandra, Minister of Long-Term Care, said in recently unveiling the higher construction funding subsidy.

The province urgently needs new beds – nearly 40,000 people are waiting for a spot in a nursing home. The enriched funding is designed to offset escalating financing and construction costs, and fast-track projects by this summer. To be eligible, projects must have shovels in the ground by Aug. 31.

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