Ontario Construction News staff writer
Construction is set to begin on a purpose-built rental housing project in Toronto’s Mount Dennis neighborhood that will provide 448 rental homes including 89 affordable rental homes.
“One out of five [rental units] are going to be affordable, not using federal affordability criteria … it’s based on a person’s income,” Toronto Mayor Olivia Chow said at a news conference.
She said the project is one of the first to receive funding through the city’s $457.5 million purpose-built rental housing incentives program approved by city council last fall that offers financial support to encourage private builders to build rental units.
The city says incentives from the program have been earmarked for more than 44 construction projects expected to add 10,000 new homes, including 7,100 purpose-built rentals. Nearly half of the rentals will be designated as rent-controlled and affordable units.
Toronto’s support for the Mount Dennis project includes $29 million, an indefinite deferral of development charges and a 15 per cent property tax reduction for the purpose-built rental homes, as well as a full exemption of all development fees and charges and property taxes for the affordable rental homes for 40 years.
Developed in partnership with the LiUNA Pension Fund of Central and Eastern Canada (LPFCEC), Fengate Asset Management, and The Hi-Rise Group, the project will be served by the Mount Dennis station of the Eglinton Crosstown light rain transit line which is expected to be completed this fall.
Located on Locust Street in Toronto’s Mount Dennis neighbourhood, the project has officially broken ground. This development is one of the first to receive support through the City of Toronto’s Purpose-Built Rental Housing Incentives Stream, a key component of the Rental Housing Supply Program launched in November 2024.