Canada and Toronto Forge $2.7 Billion Partnership to Boost Housing Development

📅 5 days ago

The Government of Canada and the City of Toronto have announced a $2.7 billion initiative aimed at advancing 18 housing projects that will collectively deliver over 5,600 new rental homes, with significant financial backing and contributions from both entities.

Earlier this month, the Government of Canada and the City of Toronto unveiled a substantial $2.7 billion partnership designed to propel the development of 18 housing projects, which will together create more than 5,600 new rental homes. Construction is anticipated to commence on approximately 4,500 of these units by the end of the year. Prime Minister Mark Carney highlighted the urgency of this initiative in a press release dated August 5, stating, "In Toronto, thousands of new homes have already been planned, permitted, and approved, but lack the financing to begin construction." This partnership thus serves to provide the necessary funding to move these projects forward, with the entire portfolio focused on rental housing, offering a variety of options including affordable, supportive, rent-geared-to-income, and rent-controlled units.
Carney emphasized Toronto's evolving role as a model for urban housing solutions, declaring, "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."
The partnership is divided into two principal categories. The first includes nine projects spearheaded by non-profit organizations, which will benefit from a total of $310 million from the Build Canada Homes initiative, resulting in 1,885 units, of which 739 are designated as affordable. The second category encompasses nine projects led by private developers, who will receive $1.8 billion in low-interest financing from the Canada Mortgage and Housing Corporation (CMHC) to deliver 3,720 units, including 1,079 affordable units. Collectively, these efforts will yield a grand total of 5,605 new rental homes.
The City of Toronto is contributing significantly to this effort, offering land at nominal values, along with more than $530 million in capital funding and various financial incentives such as exemptions from municipal and school property taxes for up to 99 years.
The 18 projects under this partnership are as follows:
**Build Canada Homes - $310M In Funding**
1. **805 Wellington West - Building A**: Owned by CreateTO, this project will consist of 81 supportive housing units in an 8-storey building utilizing volumetric modular construction.
2. **15 Denison Avenue**: An unnamed Indigenous housing provider will develop 100 supportive units through panelized construction, with land conveyed to them in June 2022.
3. **150 Queens Wharf Road**: Operated by Toronto Community Housing Corporation, this project will feature 268 units, with 85 classified as affordable, evolving from a previous plan for a 29-storey tower to a revised 37-storey structure.
4. **405 Sherbourne Street**: Also led by Toronto Community Housing Corporation, this redevelopment will transform a parking lot into a building with a 26-storey and a 35-storey tower, providing 301 units with 100 affordable.
5. **1113–1125 Dundas Street West**: CreateTO's project will deliver 74 rent-controlled homes using low-carbon mass timber construction.
6. **158 Borough Drive**: With 425 units, including 118 affordable, this transit-oriented development is the largest in the portfolio and located near the Scarborough Civic Centre.
7. **3326 Bloor Street West**: CreateTO will build 301 units (78 affordable) as part of the four-tower project at Bloor-Islington, integrating with a new Islington TTC station.
8. **C1 Bayside**: Waterfront Toronto, in conjunction with Hines, will deliver 160 units (50 affordable) as part of the Bayside development.
9. **Parkdale Hub**: This project will revitalize community spaces in Parkdale, providing 175 units, including 111 affordable, led by the Parkdale Neighbourhood Land Trust.
**Total for Build Canada Homes**: 1,885 Units (739 Affordable Units)
**CMHC - $1.8B In Financing**
1. **49 Ontario Street - East Tower**: A joint venture between Dream and CentreCourt Developments will create 601 units (191 affordable) in a 45-storey and a 49-storey tower.
2. **49 Ontario Street - West Tower**: Similar to the East Tower, this will comprise another 625 units (190 affordable).
3. **55-75 Brownlow Avenue**: Menkes Development will deliver 733 units (184 affordable) in a revised plan that shifted from condos to rental.
4. **130 Elizabeth Street (Toronto Coach Terminal)**: CreateTO will redevelop the decommissioned terminal into a 43-storey building with 547 units (144 affordable) and a non-patient medical facility.
5. **610 Bay Street (Toronto Coach Terminal)**: The second building in this redevelopment will feature 280 units (74 affordable) and include a Paramedics Hub.
6. **7 St. Dennis Drive**: This project will launch Phase One of a three-phase master plan in Flemingdon Park, contributing 474 units (95 affordable).
7. **72 Perth Avenue**: An 18-storey tower will provide 255 units (104 affordable) and has already commenced construction.
8. **3385 Lawrence Avenue East (Greencedar Commons)**: United Church of Canada will build 155 units (47 affordable) in an 11-storey mid-rise building.
9. **1552 Weston Road**: Mahogany Management will provide 50 affordable units, with a 40-year affordability requirement under the Housing Agreement.
**Total for CMHC**: 3,720 Units (1,079 Affordable Units)
Additionally, a map detailing the 18 projects accompanies this announcement.

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