Toronto and Federal Government Secure $2.7 Billion for Rental Housing
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A new intergovernmental partnership aims to deliver 5,600 rental homes through low-cost financing and land-based 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 purpose-built rental housing, as the City of Toronto first reported. The City is contributing an additional $703.7 million in financial incentives and funding to support these efforts.
According to the City of Toronto, the joint investment is expected to deliver 5,600 rental homes. The funding is split between two primary federal initiatives: the Apartment Construction Loan Program, which provides over $1.8 billion in low-cost financing for nine projects totaling more than 3,700 homes, and Build Canada Homes, which provides $310 million for over 1,800 homes across nine projects on City-owned land.
The City of Toronto notes that the nine City-led projects will involve partnerships with Indigenous, non-profit, and public housing providers to offer supportive, rent-controlled, rent-geared-to-income, and affordable homes.
Other mentioned initiatives include the Development Charge Reduction Program—a $1.5 billion effort involving the City, the Government of Canada, and the Province of Ontario to cut development charges by 40 to 60 per cent for over three years. Additionally, the City is implementing 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.
Prime Minister Mark Carney, Minister of Housing and Infrastructure Gregor Robertson, and Chief Executive Officer of the City of Toronto Olivia Chow stated that the partnership is designed to reduce barriers and speed up the delivery of homes that residents can afford.