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Toronto is deep in the throes of a housing crisis. In a significant move to address these challenges, City of Toronto has been granted $471 million in funding from the Government of Canada. This investment, announced by Mayor Olivia Chow alongside Prime Minister Justin Trudeau, Deputy Prime Minister Chrystia Freeland, and Housing Minister Sean Fraser, aims to fast-track the creation of 11,780 new homes across the city.
The funding is part of the Housing Accelerator Fund (HAF), a key component of Canada's National Housing Strategy. HAF's goal is to generate 100,000 new homes nationwide over three years, focusing on Rent-Geared-to-Income (RGI), affordable, and market rental homes within diverse and transit-connected communities. The funding from this announcement contributes towards the federal government’s share of funding — estimated at $500 to $800 million annually — to achieve the City’s ambitious HousingTO 2020-2030 Action Plan which targets the construction of 65,000 rent-controlled homes by 2030, including 6,500 RGI homes, particularly in places with good transit access. The HAF funding provides a predictable financial stream, vital for unlocking housing projects.
The City’s HAF application includes eight initiatives all aiming to quickly build affordable homes:
- transforming organizational structures to expedite development approvals,
- revitalizing Toronto Community Housing buildings,
- safeguarding rental homes,
- developing City-owned land with a focus on transit-oriented communities,
- transforming the Waterfront area for growth,
- introducing a Rental Housing Supply Incentives program,
- expanding middle housing options,
- simplifying land use and planning approvals to increase purpose-built rental supply.
The investments will also allow the City of Toronto to expand its Multi-Unit Residential Acquisition (MURA) program, supporting the not-for-profit housing sector in the conversion of market rental properties into affordable rentals.
Highlighting the importance of this partnership with the federal program, Mayor Olivia Chow stated, “Toronto is ready to build. This funding is essential in addressing the housing crisis, ensuring that everyone has access to affordable housing.”
On behalf of the federal program funding, The Hon. Sean Fraser, Minister of Housing, Infrastructure and Communities stated, “Today’s announcement will help fast track 11,780 homes for Torontonians in the next three years and tens of thousands homes over the next decade. By working with cities, mayors, and all levels of government, we are helping to get more homes built for Canadians at prices they can afford.”
The Rt. Hon. Justin Trudeau, Prime Minister of Canada added, “Like so many cities across Canada, Toronto needs more homes, and fast. That’s why we’re working with mayors across the country to cut red tape and change the way we build housing. Today’s announcement with Toronto will help build more homes, faster, so that every Canadian has a good place to call their own."
The announcement was made at a significant site – 1555-1575 Queen Street East, also known as Queen & Ashbridge. The multi-building development from Toronto Community Housing, Context Development, and RioCan Living, is revitalizing the site to include new condos, affordable rental, market rental, and RGI housing. The project was bolstered by funding incentives and land from the City of Toronto.
In line with the federal funding, City Council has been directed to establish a Housing Accelerator Reserve Fund to support the implementation of the City's action plan. The fund is issued by the Government of Canada via the Canada Mortgage and Housing Corporation (CMHC).
This federal investment dovetails with the Government of Canada's ongoing annual contribution of between $500 and $800 million. The City states this support is crucial for achieving the ambitious targets set out in its HousingTO 2020-2030 Action Plan, and represents a notable step in Toronto's efforts to transform its housing system, focusing on affordability and accessibility.
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