Toronto Unlocks Over 7,000 New Rental Homes Through Incentive Program
Toronto, ON – The City of Toronto is poised to make a significant impact on the housing crisis with the approval of more than 7,100 net new rental homes under its Purpose-Built Rental Housing Incentives program. Announced in November, this initiative aims to deliver 20,000 new rental homes, including up to 16,000 purpose-built rental homes and a minimum of 4,000 affordable units, with construction slated to begin by the end of 2026.
The first phase of the program has already exceeded expectations. Of the 75 applications received, 17 were approved, paving the way for 7,156 net new rental homes across 12 city wards. This includes 6,109 purpose-built rental homes and 1,047 affordable units.
Mayor Olivia Chow hailed the program’s success, emphasizing its potential to stimulate housing development and economic growth. “The City’s bold decision to waive costs for builders is a tremendous success,” said Chow. “Over 7,000 units of rental housing are being approved, and with other levels of government partnership, almost 33,000 homes can get built. One in five of these homes will be affordable.”
Today’s top agenda item at City Council is good news on housing.
We’ve moved fast and helped spur the construction of thousands of new rental units.
Watch my pre-Council remarks ⬇️ pic.twitter.com/TybiAGCcnn
— Mayor Olivia Chow (@MayorOliviaChow) December 17, 2024
The program offers financial incentives, including an indefinite deferral of development charges for purpose-built rental homes. At least 20 per cent of the approved homes will meet the City’s new income-based definition of affordable housing, with affordability guaranteed for 40 to 99 years.
Prioritizing Ready-to-Build Projects
Projects were selected based on their readiness to move forward. Factors considered included financing status, development review progress, and the builder’s experience, particularly for those with Canada Mortgage and Housing Corporation (CMHC) Frequent Builder status.
City Council has also approved a new Multi-Residential Property Tax Subclass, providing a 15 per cent tax rate reduction for rental projects starting in 2025.
Councillor Gord Perks, Chair of the Planning and Housing Committee, highlighted the importance of intergovernmental collaboration to address the housing crisis. “This housing crisis has solutions, and the City is leading the way in identifying and implementing these solutions – but to address the scale of the problem, we need resources from and collaboration with the other orders of government,” said Perks.
Looking Ahead
The City is prepared to advance an additional 58 applications representing 24,450 rental homes, provided the Province of Ontario introduces a Build More Homes Rebate. This rebate would cover development charges and 85 per cent of property taxes for eligible projects over 35 years.
For now, the City remains focused on expediting timelines for the approved projects. Updates on the program can be found on the City’s Rental Supply webpage at www.toronto.ca/RentalSupply.
This landmark initiative underscores Toronto’s leadership in tackling the housing crisis and highlights the pressing need for continued support from all levels of government to deliver the homes that residents urgently need.
SOURCES: City of Toronto