Toronto and Federal Government Announce $2.7 Billion Housing Partnership
AI-generated image · Bay Street Wire
The joint investment aims to deliver 5,600 rental homes, though critics claim the funding repackages existing projects.
The City of Toronto and the Government of Canada have announced a partnership to secure up to $2.7 billion to accelerate the construction of rental housing, according to a City of Toronto news release. Prime Minister Mark Carney stated via CityNews Toronto that the federal investment will be deployed over the next three years to build more than 18 housing projects, resulting in over 5,600 new rental homes.
According to the City of Toronto, the federal contribution includes more than $1.8 billion in low-cost financing through the Apartment Construction Loan Program for nine projects delivering over 3,700 homes. An additional $310 million is being provided through Build Canada Homes for nine City-led projects on City-owned land, which will deliver more than 1,800 rental homes. These City-led projects will include supportive, rent-controlled, rent-geared-to-income, and affordable housing through partnerships with Indigenous, non-profit, and public providers.
To complement the federal funds, the City of Toronto is investing $703.7 million in financial incentives and funding. The City is also launching a new phase of the Purpose-Built Rental Housing Incentives Stream, which allows for the indefinite deferral of development charges for projects that maintain at least 20 per cent affordable housing.
While Mayor Olivia Chow emphasized the urgency of the housing crisis, Conservative MP and housing critic Scott Aitchison told CityNews Toronto that the announcement is merely a "repackaging of projects already announced or already under construction."