Federal government promises $2.55B in low-cost loans to help Toronto build rental homes
The federal government says it will offer billions in low-cost, long-term financing to help build thousands of rental units in Toronto, including more than a thousand affordable homes.
The $2.25 billion will be provided through Ottawa's Apartment Construction Loan Program. It comes after Toronto city council passed a package of financial incentives for rental builders that includes relief from development charges and a reduction in property taxes, so long as 20 per cent of new units are rented at discounted prices.
The financing will go toward seven rental development projects selected by the city that could be under construction by the end of next year.
In all, it is expected to help deliver 4,831 rental homes, with at least 1,075 of those being offered at below-market rents, according to the city.
At a news conference Wednesday morning, Toronto Mayor Olivia Chow said the "landmark agreement" will reduce barriers to build housing and help secure affordable homes "for generations to come."
Chow was joined by Liberal MPs Nate Erskine-Smith, the federal minister of housing, and Julie Dabrusin, who represents Toronto–Danforth. The announcement comes with recently sworn-in Prime Minister Mark Carney expected to call a snap federal election within the coming days or weeks.
"This agreement says together we are stronger. Partnership is what it takes," Chow said. She added the agreement is "historic" because it's the first time the federal government has been "willing to batch of all the projects together and say to Toronto, 'we trust you deliver them.'"
Building has slowed, Chow says
Chow noted that a prolonged period of elevated interest rates and now deepened economic uncertainty around U.S. tariffs has resulted in many housing projects in the city stalling out.
The seven developments to be supported with the financing include several approved in December and others being built under the city's Housing Now program, which aims to build mixed-use communities on city-owned land.
The projects 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.
Chow said there is another $4.5 billion low-cost financing the city could access in partnership with Ottawa, but it is contingent on matching funding from the provincial government that has not yet materialized.
Tuesday's announcement also included a promise of $25.8 million over two years from the federal government to help Toronto with its "immediate needs related to encampments."
According to the city, the funding will be used to expand outreach to homeless people and enhance shelter services, specifically those that help connect people in encampments and shelters to permanent housing.
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