Toronto Secures $2.55 Billion for Affordable Housing Development
In a significant move towards addressing the housing crisis in Toronto, the federal government has allocated $2.55 billion in low-cost financing to the city. This funding aims to expedite the development of 4,831 rental homes, including at least 1,075 affordable units. The necessity for such funding cannot be overstated, as the city grapples with a growing demand for affordable housing amidst surging prices.
Understanding the Funding Source
The financial assistance is derived from the Canada Mortgage and Housing Corporation’s (CMHC) Apartment Construction Loan Program (ACLP). This program is designed to provide support for crucial housing developments during high-risk construction phases. The funding was secured after repeated requests by the Toronto City Council for low-cost loans to facilitate the construction of affordable and purpose-built rental homes.
Mayor Olivia Chow’s Vision for Affordable Housing
Toronto’s Mayor, Olivia Chow, emphasized the importance of this funding, stating, “Every Torontonian deserves an affordable place to call home." In a recent press release, she noted that this landmark housing agreement will mitigate barriers, allowing for the rapid construction of more than 4,800 homes. Chow’s vision underscores the need for collaboration between city and federal authorities to secure affordable housing for future generations.
City Council’s Investment in Housing Development
In tandem with federal support, Toronto City Council has approved a $234.83-million investment aimed at reforming development-related fees. This includes relief from development charges, fees, and property taxes to stimulate further development. These steps are critical in creating a conducive environment for housing projects to flourish.
Key Projects Benefitting from the Funding
The funding will enhance seven rental projects spread across the city, with 20% designated for affordable rental housing. Among these significant initiatives are two HousingNow projects: one at 777 Victoria Park Ave., comprising 705 rental homes, and another at 50 Wilson Heights Blvd., featuring 767 rental homes. These projects were initially announced back in December 2018, highlighting the delayed response in action to the pressing housing needs.
Addressing Delays in Development
Mark Richardson, the Chief Technology Officer at HousingNow, expressed his concern over the prolonged timeline for these developments. He noted that while the funding is a welcome announcement, the projects could have advanced much sooner had initiatives been implemented without delay.
Future Housing Goals
Looking ahead, Richardson emphasized the urgency of increasing the rental housing stock in Toronto, stating that the city needs 65,000 units of rental housing—below market rates—within the next six to seven years. The current funding is a good start, but he hopes that ongoing discussions about further financial support will continue, estimating that another $3 billion could be required in the near future.
Major Developments Funded
One of the largest recipients of the funding is Waterfront Toronto’s Quayside development, a grand project spanning 4.9 hectares in the emerging Port Lands neighborhood. This initiative is set to deliver 1,267 new rental homes, part of a larger plan that includes 4,634 total residential units. When complete, Quayside is expected to accommodate 7,500 residents and generate approximately 1,600 jobs.
Addressing Homelessness in Toronto
In addition to the housing development funds, Ottawa has committed $25.8 million over two years to tackle homelessness as part of the Unsheltered Homelessness and Encampments Initiative (UHEI). With over 12,000 people experiencing homelessness in Toronto on any given night, this funding is crucial.
The city also plans to leverage its $400 million financing from the province to facilitate transitional housing for individuals living in encampments. These initiatives will implement person-centered care aimed at improving the well-being and stabilization of individuals facing homelessness, supported by a network of health services and outreach programs.
Conclusion
The $2.55 billion funding agreement is a pivotal step in altering the housing landscape in Toronto, promoting the development of essential rental units, and addressing the critical issue of homelessness. By fostering collaboration between various levels of government and community organizations, Toronto is one step closer to ensuring that more residents have access to affordable and stable housing. As the city continues to build on this momentum, the hope is that more comprehensive support will follow, paving the way for a sustainable and inclusive housing environment for all Torontonians.
