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A new provincial initiative is targeting the Greater Toronto Area’s housing supply by redirecting unsold condominium inventory into rental use. Announced yesterday, the Ontario government would commit $300M through the Building Ontario Fund (BOF), partnering with High Art Capital to support the conversion of approximately 2,200 condo units into long-term rental apartments. Of these, about 550 homes would be secured at below-market rates, positioning the program as both a supply-side intervention and an affordability measure.
“To support our plan to protect Ontario, our government is using innovative financing tools to unlock housing that meets the needs of families today and for years to come,” said Peter Bethlenfalvy, Minister of Finance. “Through the Building Ontario Fund, we are mobilizing private capital, reducing risk and accelerating the delivery of affordable rental housing that would not otherwise be available.”
The program would introduce a mix of market and income-restricted rental housing, with approximately 2,200 units transitioning from condominium tenure. Within this total, about 550 homes would be designated as affordable, with rents set at either 25% below prevailing market levels or capped at 30% of median household income across the GTA, depending on which threshold is lower. Long-term affordability would be secured through legal agreements registered on title, with the intention that these units remain affordable for their lifetime.
The initiative leverages a conversion model that shifts completed but unsold condominium units into long-term rental housing. Rather than waiting for new projects to advance through planning and construction, the approach enables near-term delivery by acquiring existing inventory and repositioning it under long-term rental management. Provincial backing through BOF is intended to bridge financing gaps that have left many units unabsorbed.
The $300M provincial commitment is structured primarily as a repayable loan through the Building Ontario Fund, complemented by a smaller equity position that gives the agency a role in project oversight. This capital is expected to anchor a broader financing package, with approximately $733M in additional loans to be raised from other investors. Under the model, the acquired units would be held for a minimum of five years before being sold, at which point the BOF loan would be repaid.
“This partnership demonstrates the power of collaboration between the public and private sectors to address housing challenges. By working together with High Art Capital and our service providers, we’re creating rental housing options in the near-term, and securing affordable homes for generations to come,” said Michael Fedchyshyn, CEO of the Building Ontario Fund.
Delivery of the program is being led by High Art Capital, a private real estate investment firm focused on acquiring and managing assets across Canadian markets. Working alongside the Building Ontario Fund and other capital partners, the firm is responsible for sourcing suitable condominium inventory and overseeing its transition into professionally managed rental housing. As part of this process, High Art has initiated a competitive call for vendors, inviting property owners and stakeholders to participate in the program and contribute units for acquisition.
“Today’s announcement demonstrates what is possible when public and private capital work together with discipline and shared purpose,” said Ryan Roebuck, Co-Founder and Managing Partner of High Art Capital.
Positioned within the Building Ontario Fund’s mandate, the program aligns with one of six priority investment areas, alongside sectors such as energy, transportation, and long-term care. By redirecting underutilized residential inventory into active rental use, the model is intended to address immediate housing needs while supporting labour mobility and access to housing near employment centres.
“An integral step towards protecting Ontario’s economy is ensuring everyone in our province has a safe and affordable place to live,” said Rob Flack, Minister of Municipal Affairs and Housing. “This partnership reflects our government’s commitment to finding collaborative, practical housing solutions that meet the needs of Ontarians, so more people can thrive in their communities.”
The Building Ontario Fund is an arms-length Crown agency established under 2024 legislation to advance major infrastructure projects across the province. The fund is designed to address financing gaps by working alongside institutional and private investors, enabling projects that may otherwise stall to proceed.
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