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The City of Toronto is stepping up efforts to tackle the housing crisis, with a focus on safeguarding renters, encouraging new purpose-built rental developments, and increasing mid-rise residential density along major corridors. Approved last week at City Council, three initiatives aim to improve housing affordability and expand options for residents across income brackets.
The first initiative focuses on accelerating the development of purpose-built rental homes. The City plans to leverage its resources to kick-start the construction of 7,000 new rental units, including 5,600 purpose-built rentals and at least 1,400 affordable homes. This effort is part of a larger goal to deliver 20,000 new rental homes citywide, with up to 16,000 being purpose-built and a minimum of 4,000 designated as affordable housing.
Designed for non-profit and private housing organizations, the Rental Housing Supply Program (RHSP), building on the Open Door Affordable Housing Program, released its call for applications today. It supports the creation of various rental housing types, including rent-geared-to-income (RGI) units, affordable rental homes, and rent-controlled properties.
Under the guidelines, at least 20% of units in approved projects must be affordable or rent-geared-to-income (RGI), with affordability secured for at least 40 years and potentially extending up to 99 years. The program offers financial incentives, including capital funding of up to $260,000 per unit and exemptions from municipal fees and charges. Approved projects will also benefit from a prioritized development review process.
The City is appealing to the provincial and federal governments to expand the initiative's reach. This includes a $1 billion rebate from the Province, known as the "Build More Homes Rebate," to offset development charges and property tax reductions. Additionally, Toronto is requesting $7.3 billion in affordable housing financing from the Canada Mortgage and Housing Corporation to support these projects.
The second initiative involves implementing a Rental Renovation Licence By-law, effective July 31, 2025. Its goal is to prevent “renovictions,” where landlords evict tenants under the guise of renovations, often to increase rents or deny tenants re-entry. Landlords pursuing such evictions must secure a Rental Renovation Licence supported by approved building permits and a comprehensive tenant accommodation plan. Options for tenants include temporary housing with similar rents or financial assistance to secure their own interim accommodations.
The third initiative involves permitting as-of-right heights and densities for mid-rise buildings along designated avenues and mixed-use areas. This policy change is meant to streamline the development process for mid-rise projects, encouraging residential intensification and diversifying housing options in these areas.
To further these aims, City staff are reviewing the Avenues Policy and exploring opportunities over the next year to expand Mixed-Use Areas designations across the city. This includes updating the Mid-Rise Building Urban Design Guidelines and implementing as-of-right zoning for mid-rise developments along key corridors. As part of the Housing Action Plan (HAP), the City is revising Mid-Rise Building Urban Design Guidelines to support additional mid-rise housing along Avenues. New zoning regulations will also apply updated height and density permissions.
These initiatives are part of Toronto's broader HousingTO 2020-2030 Action Plan, which has set ambitious targets to approve 65,000 new rent-controlled homes by 2030. This includes 41,000 affordable rental units, 6,500 rent-geared-to-income units, and 17,500 other rent-controlled homes.
Monitoring and reporting mechanisms are being put in place to assess the effectiveness of these policies. City staff are expected to report back on the implementation of the new initiatives, including updates on housing pipeline outcomes and recommendations for any necessary adjustments to strengthen their impact.
The submission deadline for RHSP applications is November 29, 2024, with successful applicants to be notified the week of December 9, 2024.
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