Ontario Invests Up to $178 Million to Support 1,700 New Rental Homes in Scarborough
Scarborough Junction project aims to deliver affordable housing near transit with first occupancies expected by 2030
SCARBOROUGH, ON — The Ontario government is investing up to $178 million through the Building Ontario Fund (BOF) to support the construction of approximately 1,700 new rental homes in Scarborough, including a target of 340 affordable units with below-market rents.
Announced on June 3, the investment will help advance the Scarborough Junction development, a planned transit-oriented community located near the Scarborough GO Station. The broader project is expected to include approximately 7,700 homes, along with parks, public spaces and community amenities connected to regional transit services.
According to the province, the funding is being provided through a joint venture involving the Building Ontario Fund, Republic Developments and Harlo Capital. Provincial officials say the project had previously stalled and required additional financing to proceed.
Affordable Housing Near Transit
The Scarborough Junction development is planned for underused land adjacent to the Scarborough GO Station, supporting the province’s strategy of increasing housing supply near major transit infrastructure.
The project is expected to deliver approximately 1,700 purpose-built rental homes, with at least 20 per cent of units targeted as affordable housing. The affordable units are expected to remain at below-market rents for 40 years and are intended to meet eligibility requirements under City of Toronto affordable housing programs.
Minister of Finance Peter Bethlenfalvy said the investment is intended to support long-term housing affordability while unlocking housing supply in a rapidly growing region.
The Greater Toronto Area is projected to add at least 1.7 million residents by 2051, placing continued pressure on housing availability and affordability across the region.
Our government is investing $178 million to help build 1,700 new rental homes in Scarborough.
The new Scarborough Junction will include parks, public spaces and community amenities with Scarborough GO nearby.
🔗: https://t.co/O4H0s6VkcA pic.twitter.com/9IUujw1w0D
— Raymond Cho (@RaymondChoPC) June 3, 2026
Construction Expected to Begin in 2027
Provincial officials say construction is expected to begin in 2027, with the first residents anticipated to move into completed units beginning in 2030.
The project is also expected to create construction-related employment and economic activity during development.
The Building Ontario Fund’s equity investment is designed to be repaid over time. Once repayment occurs, BOF intends to reinvest those funds into other priority infrastructure projects across Ontario, including affordable housing, transportation, energy, long-term care, municipal infrastructure and critical minerals development.
Building Ontario Fund’s Role
The Building Ontario Fund was established to partner with institutional investors and private-sector organizations to address financing gaps that may prevent priority infrastructure projects from moving forward.
Michael Fedchyshyn, CEO of the Building Ontario Fund, said the Scarborough Junction investment demonstrates how the fund can help advance housing projects that face challenging market conditions.
Republic Developments CEO Matt Young described the partnership as an innovative financing model that could help unlock large-scale housing developments in Ontario, while Harlo Capital CEO Jeffrey Kimel said the project’s location near GO Transit makes it attractive for future residents seeking transit-connected housing options.
The announcement builds on the province’s broader housing initiatives, including development charge reductions, tax measures and housing-enabling infrastructure investments delivered through the Canada-Ontario Partnership to Build.
Once completed, Scarborough Junction is expected to become one of the largest transit-oriented residential communities in Toronto’s east end, adding new rental housing supply in an area experiencing continued population growth and increasing demand for affordable homes.
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