Federal $2.7B Pledge for Toronto Rental Homes

The Government of Canada and the City of Toronto announced on August 5 a housing partnership worth up to C$2.7 billion to accelerate rental construction across the city. The package is tied to 18 projects expected to deliver more than 5,600 rental homes, including affordable, supportive, rent-geared-to-income and rent-controlled units. Federal officials said the plan combines direct funding with low-cost financing, while the city is adding C$703.7 million in funding and financial incentives. The announcement places Toronto at the center of Prime Minister Mark Carney’s broader housing push through Build Canada Homes and existing Canada Mortgage and Housing Corporation loan programs. ### Where does the C$2.7 billion actually go? The federal package is split between two housing channels. More than C$1.8 billion will flow through Canada Mortgage and Housing Corporation’s Apartment Construction Loan Program for nine purpose-built rental projects, while more than C$310 million in federal funding will support nine additional projects on city-owned land through Build Canada Homes. Ottawa also said up to C$600 million in additional loan financing could be made available for future Toronto projects that meet program requirements. (canada.ca) Toronto’s own contribution is separate from the federal total. The city said it is investing C$703.7 million in funding and financial incentives to help unlock the projects, alongside a new phase of its Purpose-Built Rental Housing Incentives Stream that will allow development charges to be deferred indefinitely for projects with at least 20% affordable housing. (canada.ca) ### How many homes are in the first wave? The 18 projects in the partnership are expected to deliver more than 5,600 rental homes across Toronto. The nine city-land projects backed through Build Canada Homes account for 1,885 rental homes, including nearly 740 affordable homes, according to the federal backgrounder. The nine projects backed through the Apartment Construction Loan Program are expected to deliver more than 3,700 rental homes. (toronto.ca) Federal officials said construction is expected to begin on more than 4,500 homes across the portfolio before the end of 2026. The projects are spread across downtown Toronto, Scarborough, Etobicoke, Parkdale and the waterfront, according to the backgrounder. ### What kinds of housing are included? (canada.ca) The city said the projects include affordable, supportive, rent-geared-to-income and rent-controlled homes. The federal backgrounder says several developments will use volumetric modular, panelized modular and mass-timber construction methods. (canada.ca) Specific projects show the mix. At 805 Wellington Building A, 81 units are designated supportive housing in a project delivered with Homes First using volumetric modular construction. At 15 Denison Avenue, 100 supportive units are planned in an Indigenous-led development using panelized construction. At 150 Queen’s Wharf Road, a mixed-income redevelopment led by Toronto Community Housing Corporation is slated to deliver 268 units, including 84 affordable homes, while 158 Borough Drive is listed as the largest project in the portfolio with 425 units next to Scarborough Civic Centre and Scarborough Town Centre. (canada.ca) ### How does this fit with other Toronto housing measures? Toronto said the announcement builds on a separate Development Charge Reduction Program announced with Ontario and Ottawa. That program totals C$1.5 billion and is designed to reduce development charges by 40% to 60% for more than three years, the city said. (canada.ca) The federal side also links the Toronto package to Build Canada Homes, the housing agency Carney’s government launched to oversee federal housing programs. Ottawa said the Toronto agreement advances projects through that new agency as well as CMHC’s established loan program for rental construction. ### What happens next for the projects? The federal backgrounder says more than 4,500 homes in the partnership portfolio are expected to start construction before December 31, 2026. (toronto.ca) Ottawa also said up to C$600 million in additional Apartment Construction Loan Program financing remains available for future Toronto projects that qualify under the program’s rules. (cbc.ca) Toronto said the next step is to move the 18 named projects through delivery with public, non-profit and Indigenous housing partners. The city’s release lists the federal loan stream, Build Canada Homes funding and municipal incentives as the financing structure now in place for those projects. (toronto.ca) (canada.ca)