Ontario Construction News staff writer
The federal government will provide billions in low-cost, long-term financing to help build thousands of rental units in Toronto, including more than 1,000 affordable homes. A total of $2.25 billion will be allocated through Ottawa’s Apartment Construction Loan Program.
This follows a decision by Toronto city council to approve a package of financial incentives for rental builders, which includes exemptions from development charges and reductions in property taxes, provided 20 per cent of the new units are rented at discounted rates.
The extended period of high interest rates, combined with growing economic uncertainty over U.S. tariffs, has led to delays in many housing projects across the city.
The seven developments receiving funding support include projects approved in December, as well as others underway through the cityโs Housing Now program, which aims to create mixed-use communities on city-owned land. They are:
- 1,267 rental homes at Quayside
- 1,226 rental homes at 49 Ontario St.
- 767 rental homes at 50 Wilson Heights Blvd.
- 705 rental homes at 777 Victoria Park Ave.
- 370 rental homes at 250 Wincott Dr.
- 341 rental homes at 26 Gilder Dr.
- 155 rental homes at 3379-3385 Lawrence Ave. E.
Mayor Olivia Chow also confirmed an additional $4.5 billion in low-cost financing is available through a partnership with the federal government. However, this funding depends on the provincial government matching the funds, which has not yet happened.
In addition to the housing announcement, the federal government committed $25.8 million over two years to help Toronto address its โimmediate needs related to encampments.โ The funds will be used to enhance outreach to homeless individuals and improve shelter services, specifically helping those in encampments and shelters transition to permanent housing.
George Zegarac, president and CEO of Waterfront Toronto, said the $2.25 billion funding will contribute to 1,267 purpose-built rental homes at Quayside. This is part of the first phase of the Quayside project, which will also include 550 affordable rental homes. Once completed, Quayside is expected to house 7,500 people and create 1,600 jobs, with construction slated to begin in 2026 and residents moving in by 2030.