Ontario Construction News staff writer
Mississauga is set to see more than 1,400 new rental units under construction, with 25 percent of those offering affordable or below-market rents. The initiative, backed by the federal Housing Accelerator Fund, marks a significant step toward addressing the city’s growing housing needs.
This new wave of purpose-built rental projects follows the approval of a funding program in July 2024. It provides financial support to both non-profit and private developers, including capital grants for each affordable unit and waivers for certain municipal fees. The goal is to speed up the construction of rental units that are more accessible to residents.
\”The strong interest we’ve seen from both private and non-profit developers proves that targeted financial incentives are a key tool in driving construction during a housing crisis,” said Andrew Whittemore, Commissioner of Planning and Building for Mississauga. โWeโre excited to help bring these projects to life and provide stable, affordable housing for our community.โ
Since 2005, Mississauga has seen the construction of just 2,200 rental units. The new funding is expected to deliver 1,450 units, including nearly 400 with rents that are more affordable than the typical market rate. The city received 12 applications during an open call for projects, with eight developments selected to move forward.
Of the 1,450 new units, 384 will be offered at affordable rentsโat or below 100 percent of the average market rent in the area (currently capped at $1,625 for a one-bedroom unit). An additional 123 units will be rented at below-market rates, meaning rents will be below 125 percent of the average market rent (up to $2,031 for a one-bedroom unit).
In total, the projects include a mix of unit types, with 200 of the new homes being family-sized units with two or more bedrooms. The funding is specifically targeted at “shovel-ready” projects that can start construction within two years.
Successful applicants will receive a $130,000 grant for each affordable unit and $60,000 for each below-market unit. In addition to the grants, they will benefit from waivers or reductions in certain municipal fees. The funds will be distributed after building permits are issued, provided all program requirements are met. The affordable units must remain affordable for at least 25 years.
Mississauga’s recent development trend has largely focused on market condominiums, with rental units in the Toronto area making up around 60 percent of apartment condominiums built between 2016 and 2021. However, this funding initiative aims to shift the focus back to purpose-built rental housing, which is seen as critical for the city’s future.
Tim Blair and David Constable, co-founders of Kindred Works, are among those leading the charge. Their development on Tomken Road will feature sustainable, carbon-free designs, offering homes that are both affordable and environmentally friendly. “We’re thrilled to be part of this program, making below-market homes a reality,” said Blair and Constable. “Thanks to initiatives like this, we can contribute to a greener, more inclusive community.”