Federal Government Commits $2.55 Billion to Boost Toronto Housing, Address Homelessness

Toronto, ON – The federal government has announced a landmark $2.55 billion in low-cost financing to accelerate the construction of rental homes in Toronto, reinforcing a partnership with the City to address the housing crisis. The initiative, unveiled today by Mayor Olivia Chow alongside the Honourable Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities, MP Julie Dabrusin (Toronto-Danforth), and Deputy Mayor Ausma Malik (Spadina-Fort York), aims to support the creation of 4,831 new rental units, including at least 1,075 affordable homes.

The financing, provided through the Apartment Construction Loan Program (ACLP) and administered by the Canada Mortgage and Housing Corporation (CMHC), will complement the City’s investment of approximately $234.83 million in financial incentives such as development charge relief, fee waivers, and property tax reductions.

• Quayside – 1,267 rental homes, adding to a $975 million federal, provincial, and municipal investment supporting 14,200 new homes along Toronto’s waterfront.
• 49 Ontario St. – 1,226 rental homes.
• 50 Wilson Heights Blvd. – 767 rental homes.
• 777 Victoria Park Ave. – 705 rental homes.
• 250 Wincott Dr. – 370 rental homes.
• 26 Gilder Dr. – 341 rental homes.
• 3379-3385 Lawrence Ave. E. – 155 rental homes.

The funding is part of a broader federal commitment of $7.3 billion in ACLP low-cost financing over three years, contingent on financial support from the Ontario government. The City has urged the provincial government to expand its Purpose-Built Rental Housing Incentives stream to help expedite rental housing development.

Toronto has set a 10-year goal of approving 65,000 rent-controlled homes by 2030, including 41,000 affordable rental units, 6,500 rent-geared-to-income (RGI) homes, and 17,500 rent-controlled units. The City continues to work with all levels of government to achieve these targets.

Federal and Provincial Support for Homelessness Initiatives

In addition to the housing investment, the federal government has pledged $25.8 million over two years under the Unsheltered Homelessness and Encampments Initiative (UHEI) to help Toronto address homelessness and support individuals living in encampments. This funding supplements the City’s $400 million investment, secured in collaboration with the Ontario government, to enhance shelter services and expand outreach programs.

The funding will support:

• Partnerships with health, mental health, and addictions service providers to assist individuals with complex needs in encampments.
• The hiring and training of up to 20 additional front-line City staff and partner agencies to enhance outreach efforts.
• Indigenous-led, culturally appropriate housing projects to support Indigenous community members disproportionately affected by homelessness.

The initiative builds on the City’s Enhanced Outreach Model, which has successfully reduced large encampments in the past 18 months by transitioning individuals into shelters and permanent housing.

With these new investments, Toronto is taking a significant step toward addressing both housing affordability and homelessness, demonstrating a strong commitment from all levels of government to improving the city’s housing landscape for current and future residents.

SOURCE City of Toronto