Toronto is receiving up to $2.7 billion from the federal government to speed up housing construction and support new purpose-built rental buildings, under a partnership announced today by the City and the Government of Canada.
According to a City of Toronto news release, the joint investment will deliver 5,600 rental homes in neighbourhoods across the city. The City is contributing its own money as well, putting $703.7 million toward funding and financial incentives to help unlock the projects.
Where the money is going
The federal contribution comes through two programs. The Government of Canada's Apartment Construction Loan Program is providing more than $1.8 billion in low-cost financing for nine housing projects that will deliver more than 3,700 rental homes in Toronto.
A further $310 million is coming through Build Canada Homes to advance more than 1,800 rental homes across nine additional projects on City-owned land. The City said those projects will be city-led and delivered through partnerships with public, non-profit and Indigenous housing providers.
The nine city-led projects will include a mix of affordable, rent-geared-to-income, rent-controlled and supportive homes. Beyond expanding the housing supply, the investment is expected to support the local economy through procurement and job creation.
New incentives for affordable rental projects
Alongside the federal funding, the City is launching a new phase of its Purpose-Built Rental Housing Incentives Stream using its own resources. Under the program, development charges can be deferred indefinitely for projects that include a minimum of 20 per cent affordable housing.
The announcement builds on recent intergovernmental work on housing. The City, the Province of Ontario and the Government of Canada recently announced the Development Charge Reduction Program, which provides $1.5 billion in funding to cut development charges by 40 to 60 per cent for more than three years.
Toronto is becoming a model for how a great city can build its way forward. Together with the City of Toronto, we are getting thousands of new rental homes built, across every part of the housing system, in strong, safe communities that people can afford. This is what is possible when governments build together.
That statement came from Prime Minister Mark Carney, as quoted in the City's release.
Every Canadian deserves a safe, affordable place to call home. Through our partnership with the City of Toronto, we are aligning investments and working together to accelerate the construction of much-needed housing. By reducing barriers and speeding up delivery, we are helping build more homes and creating stronger, more affordable communities across the country.
Minister of Housing and Infrastructure Gregor Robertson offered that assessment in the same release.
Today’s announcement shows what’s possible when governments work together. I want to thank Prime Minister Mark Carney, Minister Gregor Robertson and our federal partners for their commitment to building more homes in Toronto. Today’s investment means more people will have the opportunity to find a home they can afford, stay close to their communities and build a future in the city they love. Together, we are delivering the housing Toronto needs and creating a more affordable, caring city for everyone.
Toronto Mayor Olivia Chow provided those comments, according to the City's news release.
Together, the initiatives are meant to create the conditions to deliver homes faster while supporting long-term affordability and complete communities across Toronto, the City said.
