City Hall and Ottawa Pledge $2.7 Billion for Rental Housing

The City of Toronto and the Government of Canada have announced a joint effort to accelerate the construction of rental housing, securing up to $2.7 billion in funding, as first reported by the City of Toronto. According to a City of Toronto news release, the partnership intends to deliver 5,600 rental homes across the city.

Reporting from the City of Toronto indicates the funding is split between two primary federal streams. The Apartment Construction Loan Program will provide more than $1.8 billion in low-cost financing for nine projects totaling over 3,700 rental homes. Additionally, the Build Canada Homes program will contribute $310 million toward nine City-led projects on municipal land, which are expected to produce more than 1,800 rental homes. These City-led developments will include a mix of supportive, rent-controlled, rent-geared-to-income, and affordable housing through collaborations with Indigenous, non-profit, and public housing providers.

To supplement the federal funds, the City of Toronto is investing $703.7 million in financial incentives and funding. Mayor Olivia Chow, referred to as the Chief Executive Officer of the City of Toronto, stated the investment will allow more residents to find affordable housing. Prime Minister Mark Carney and Minister of Housing and Infrastructure Gregor Robertson also credited the partnership with reducing barriers to speed up housing delivery.

The City noted other ongoing efforts to stimulate the industry, including the $1.5 billion Development Charge Reduction Program—a joint effort with the Province of Ontario and the federal government—which reduces development charges by 40 to 60 per cent for over three years. Furthermore, the City is introducing a new phase of the Purpose-Built Rental Housing Incentives Stream, allowing for the indefinite deferral of development charges for projects that maintain at least 20 per cent affordable housing.