Mississauga Launches $44 Million Initiative to Increase Affordable Rental Housing

Mississauga, ON – In a significant move to tackle the city’s housing affordability crisis, the Mississauga City Council has approved a Community Improvement Plan (CIP) with a robust $44 million funding commitment. This new initiative aims to rapidly boost the availability of affordable rental housing throughout Mississauga, addressing both multi-unit buildings and low-density residential options.

Program Overview:

The CIP is designed to provide financial support through grants to homeowners and developers committed to constructing affordable rental units. The program will be open for applications starting this fall and will run until 2027, or until the allocated funds are fully used.

Focus Areas of the CIP:

• Multi-Unit Buildings: Grants will support the development of affordable and below-market rental units in larger residential complexes.
• Gentle Density Units: The program will also target the creation of rental units such as basement apartments, garden suites, triplexes, and fourplexes in less dense areas.

Addressing Affordability Challenges:

With market rents in Mississauga significantly outpacing affordable levels, many renters are struggling to find housing within their means. Current rental rates require a gross annual income of nearly $100,000 for a one-bedroom apartment. The CIP aims to alleviate this pressure by helping developers and homeowners cover some of the costs associated with building new affordable units.

Funding approved for more housing! Today Council approved a $44 million program to encourage more affordable rental and gentle density housing. We’re grateful to @CMHC_ca‘s Housing Accelerator Funding for helping to make this program possible. Learn more: https://t.co/2CRalFKCDd pic.twitter.com/MWtH2QWYqA

— City of Mississauga (@citymississauga) July 31, 2024

Innovative Support Measures:

The CIP introduces two notable features to further encourage affordable housing development:

• Tax Increment Equivalent Grants: These grants, subject to City Council approval, could offset a portion of the increased property taxes resulting from the redevelopment of multi-residential properties.
• City Land Acquisition Program: This initiative will enable the acquisition and sale of city-owned land at reduced rates for affordable housing projects.

Funding and Strategic Partnerships:

The CIP is partially funded by the federal Housing Accelerator Fund, which was part of a $112.9 million agreement between the Government of Canada and Mississauga announced in December 2023. This agreement aims to facilitate the construction of over 35,000 homes and improve housing affordability over the next decade.

Background on the CIP:

Community Improvement Plans, as outlined under the Ontario Planning Act, allow municipalities to offer financial incentives like grants and loans to stimulate development. The Mississauga CIP specifically targets rental units that are affordable to moderate-income households earning between $54,000 and $96,000 annually. It does not address low-income housing, which is managed separately by the Region of Peel.

Statements from City Officials:

• Mayor Carolyn Parrish: “Increasing rental housing is a top priority for our Council and Housing Task Force. We urge developers and homeowners to leverage this program to build more affordable units. The time to act is now.”
• The Honourable Rechie Valdez, Minister of Small Business: “Our agreement with Mississauga represents a significant investment in making housing more affordable. We are committed to continuing our partnership to address the needs of our community.”
• Andrew Whittemore, Commissioner of Planning and Building: “We have tailored the grants based on feedback from industry stakeholders to overcome financial hurdles and encourage the development of affordable rental units.”

For more information on the Community Improvement Plan and how to apply, visit the City of Mississauga’s official website.