$2.7-Billion Package Moves 5,600 Toronto Rental Homes Closer to Construction
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The federal government and the City of Toronto have announced a new partnership worth up to C$2.7 billion to advance 18 housing projects expected to deliver more than 5,600 rental homes across the city, including affordable, supportive, rent-controlled and rent-geared-to-income units.
The package includes more than C$310 million in direct federal funding for nine projects on City-owned land, more than C$1.8 billion in low-cost financing for nine additional purpose-built rental developments, and up to C$600 million in financing capacity for future Toronto projects that meet program requirements.
The full C$2.7-billion figure does not consist entirely of government grants. Most of the money will be provided through the Canada Mortgage and Housing Corporation’s Apartment Construction Loan Program and will be repaid under the applicable loan agreements. Direct funding through Build Canada Homes will support non-market and community housing on City-owned sites.
The City of Toronto is contributing approximately C$703.7 million through funding and financial incentives intended to help the projects move forward, including measures related to development charges, property taxes and other construction costs.
The Build Canada Homes portfolio covers 1,885 rental units at nine sites, including 739 affordable or supportive homes. The projects include Indigenous-led supportive housing, Toronto Community Housing developments, transit-oriented communities and buildings using modular and mass-timber construction methods.
Low-cost federal loans will support another nine projects containing 3,720 rental homes, including 1,079 affordable units. The locations include the former Toronto Coach Terminal lands and developments in downtown Toronto, Scarborough, Weston, Leaside and Flemingdon Park.
Together, the two portfolios include more than 1,800 units classified as affordable, as well as supportive, rent-geared-to-income or long-term rent-controlled homes in some projects. The announcement does not mean that all 5,600 units will be subsidized, as the overall portfolio also includes market-rate rental housing.
Construction is expected to begin on more than 4,500 homes before the end of 2026, representing roughly 80 per cent of the units covered by the partnership. The Build Canada Homes projects are expected to reach substantial completion by March 2031.
The announcement comes as Toronto faces a severe shortage of rental housing and high rents, while rising construction and financing costs have delayed or stalled developments across the city.
Some projects remain subject to financial review, credit approval and final agreements, but the partnership provides financing intended to move them closer to construction rather than leaving them as unfunded or delayed proposals.
