Ontario Invests $300M to Convert Condo Units Into Rental Housing Across GTA
GTA Condo Conversion Rental Housing Initiative Adds 2,200 Units Including 550 Affordable Homes
TORONTO — The Ontario government is investing $300 million through the Building Ontario Fund (BOF) to support the conversion of approximately 2,200 condominium units into long-term rental housing across the Greater Toronto Area, including 550 affordable rental homes.
The initiative, delivered in partnership with High Art Capital, is positioned as a first-of-its-kind project at this scale in the GTA, aimed at addressing housing supply challenges while improving affordability.
Turning Unsold Condos Into Rental Supply
Provincial officials say the investment will help unlock housing that might otherwise remain vacant or unsold, converting it into rental units that can be occupied more quickly.
“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,” said Finance Minister Peter Bethlenfalvy.
The province’s contribution is primarily structured as a repayable loan, along with a small equity stake that allows for participation in project governance.
550 Units Designated as Affordable Housing
Of the 2,200 units, approximately 550 homes will be offered at below-market rents, defined as either:
- 25 per cent below market rates, or
- No more than 30 per cent of median household income in the GTA, whichever is lower
The province says affordability will be protected long-term through legal agreements registered on property titles, ensuring these units remain accessible for future residents.
Leveraging Private Investment to Expand Housing
In addition to the province’s $300 million investment, the project is expected to attract approximately $733 million in additional financing from private investors, significantly increasing the total capital available for the initiative.
The Building Ontario Fund is expected to hold ownership of the units for at least five years, after which the properties may be sold, with the provincial loan repaid.
Addressing Rental Market Pressures
The GTA continues to face strong demand for rental housing and limited supply, contributing to rising rents and affordability challenges.
Housing Minister Rob Flack said the project reflects a broader strategy to respond to these pressures.
“This partnership reflects our government’s commitment to finding collaborative, practical housing solutions that meet the needs of Ontarians,” Flack said.
Officials say the initiative will also allow more residents to live closer to employment opportunities, reducing commuting pressures and supporting regional economic growth.
Part of a Broader Economic Strategy
The investment is part of Ontario’s broader plan to build a competitive and resilient economy, particularly in the face of global economic uncertainty and trade pressures.
The Building Ontario Fund plays a central role in that strategy by supporting infrastructure investments across key sectors, including housing, energy, transportation and community infrastructure.
Industry leaders involved in the project say the collaboration highlights the potential of public-private partnerships to deliver housing solutions at scale.
“This partnership converts vacant condominiums into approximately 2,200 professionally managed rental homes, including 550 units offered at affordable rents intended to be secured in perpetuity,” said Ryan Roebuck, co-founder and managing partner at High Art Capital.
A New Model for Housing Delivery
The province says the initiative represents an innovative approach to increasing housing supply quickly without relying on traditional development timelines.
By repurposing existing inventory, officials aim to accelerate housing availability, improve affordability and stabilize the rental market in one of Canada’s most competitive housing regions.
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