The Ontario government is now providing loan guarantees to make it easier for select not-for-profit homes to secure development loans from Infrastructure Ontario to help increase long-term care capacity in communities across the province – as part of a historic $6.4 billion investment to deliver 30,000 net new beds over ten years.
Speaking at the Rekai Centre at Wellesley Central Place in Toronto today, Minister of Long-Term Care Rod Phillips said, “As part of our government’s plan to fix long-term care, we are making it easier for not-for profit homes to secure financing by launching the Not-for-Profit Loan Guarantee Program. We are protecting our progress by fixing this decades-old problem so we can get shovels in the ground and help accelerate the development of long-term care homes in communities all across the province.”
Securing financing is a long-standing challenge to development faced by the not-for-profit long-term care sector. With the new Not-for-Profit Loan Guarantee Program, $388 million in lending from Infrastructure Ontario will be unlocked for not-for-profit long-term care homes. It will also reduce approved not-for-profit borrowing costs and has the potential to save not-for-profit long-term care homes approximately $62 million.
Increased not-for-profit capacity in the sector will also ensure that Ontario’s seniors have access to a range of choices and locations for their long-term care needs. The province will work with Infrastructure Ontario and eligible operators to identify the right projects for the inaugural round of this initiative.
This initiative is part of the government’s plan to fix long-term care and to ensure Ontario’s seniors get the quality of care and quality of life they need and deserve both now and in the future. The plan is built on three pillars: staffing and care; accountability, enforcement, and transparency; and building modern, safe, comfortable homes for seniors.
The third pillar is supported through ongoing investments and strategic initiatives which include working with long-term care partners to remove barriers to long-term care home development to improve and accelerate the development of long-term care beds – actions which are urgently needed to address the increasing demand for long-term care beds across the province.
Quick Facts
- Building new long-term care homes and redeveloping existing older homes to modern standards is part of the Government of Ontario’s Long-Term Care Modernization Plan.
- The Ontario government has introduced legislation that, if passed, would improve the well-being of residents in long-term care and retirement homes, and ensure they get the care they deserve. If passed, the Providing More Care, Protecting Seniors, and Building More Beds Act, 2021 would repeal the current Long-Term Care Homes Act, 2007 and create the Fixing Long-Term Care Act, 2021. The Bill also includes proposed amendments to the Retirement Homes Act, 2010.
- Ontario plans to invest an additional $3.7 billion, beginning in 2024–25, on top of the historic $2.68 billion already invested, to support a new series of allocations for the development of 10,000 new and 12,600 redeveloped beds across the province. These historic investments would bring the total to $6.4 billion since spring 2019.
- Infrastructure Ontario’s Loan Program is an alternative financing approach that provides affordable, long-term loans to renew and build public infrastructure. Since 2003, more than $11 billion in loans have been approved in support of more than 3,200 community infrastructure projects across the province.
