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A new partnership between the City of Toronto and the federal government is expected to unlock more than 5,600 purpose-built rental homes across 18 projects, backed by up to $2.7 billion in federal financing and funding. Announced yesterday, the partnership also includes $703.7 million in City funding and incentives aimed at moving new housing into construction in neighbourhoods across Toronto.
Of the over 5,600 homes, more than 4,500 (roughly 80% of the total) are expected to be under construction by the end of 2026. The program spans both privately developed purpose-built rentals and City-led projects, with more than 1,800 homes planned as affordable, rent-geared-to-income, rent-controlled, or supportive housing.
“Toronto is becoming a model for how a great city can build its way forward,” said Prime Minister Mark Carney. “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 larger funding stream will direct more than $1.8 billion in low-cost financing from the federal Apartment Construction Loan Program to nine privately led projects, supporting over 3,700 rental homes, including more than 1,000 affordable units. According to Carney, the developments had already secured zoning approvals but had been unable to advance without additional financing.
A second stream will provide $310 million through Build Canada Homes to advance nine City-led developments on municipally owned land. Together, these sites are planned to deliver 1,885 rental homes, including 739 affordable units and supportive homes and more than 1,100 rent-controlled homes, complementing the private-sector projects with a substantial non-market component.
The City-owned sites will accommodate a range of affordable, rent-geared-to-income, rent-controlled, and supportive homes, delivered with public, non-profit, and Indigenous housing partners. Beyond adding rental supply, their construction is expected to generate local jobs and procurement opportunities.
The 18-project roster includes a 16-storey building in Parkdale and a development at 158 Borough Drive in Scarborough. Other examples include an Indigenous-led, 100-unit project at 15 Denison Avenue and a development at 1113–1125 Dundas Street West planned with mass timber construction, geothermal energy, and other low-carbon design features.
“Every Canadian deserves a safe, affordable place to call home,” said Gregor Robertson, federal Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada. “Through our partnership with the City of Toronto, we are aligning investments and working together to accelerate the construction of much-needed housing.”
Toronto’s contribution totals $703.7 million in direct funding and financial incentives. The package includes $530 million connected to the City-led projects, including 99-year exemptions from municipal and education property taxes intended to improve their long-term financial viability.
The partnership follows the recent launch of the $1.5-billion Development Charge Reduction Program, jointly backed by Toronto, Ontario, and Ottawa. That initiative cuts development charges by 40% to 60% for eligible projects for more than three years, while maintaining funding for infrastructure needed to accommodate the city’s growth.
The City is also launching a new phase of its Purpose-Built Rental Housing Incentives Stream. Projects reserving at least 20% of their homes as affordable housing will be eligible to defer development charges indefinitely, reducing upfront costs while securing a long-term affordability component.
“Today’s announcement shows what’s possible when governments work together,” said Mayor Olivia Chow. “I want to thank Prime Minister Mark Carney, Minister Gregor Robertson and our federal partners for their commitment to building more homes in Toronto. Today’s investment means more people will have the opportunity to find a home they can afford, stay close to their communities and build a future in the city they love.”
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UrbanToronto's research and data service, UTPro, provides comprehensive data on construction projects in the Greater Golden Horseshoe—from proposal through to completion. Other services include Instant Reports, downloadable snapshots based on location, and a daily subscription newsletter, New Development Insider, that tracks projects from initial application.
