The federal government is committing more than $2.5-billion in loans to support rental housing in Toronto, a stronghold for the Liberals, ahead of an expected election call.
Minister of Housing, Infrastructure and Communities Nathaniel Erskine-Smith on Wednesday announced “low-cost financing” for mixed-income apartments in the City of Toronto. These include seven rental housing projects with a total of 4,831 rental homes; among them, 1,075 will be below-market rentals.
Toronto Mayor Olivia Chow touted the deal as a sign of an improved relationship with Ottawa, saying the new financing will unstick the city’s “frozen” pipeline of new housing.
“This is the first time the federal government has been willing to bundle projects together and say, Toronto, we trust you to build,” she said. “This is a made-in-Toronto solution.”
The federal government is signalling its willingness to invest in Toronto, where the Liberals hold a majority of seats.
“We have been a strong partner for Toronto,” Mr. Erskine-Smith said. “We’ve worked hand-in-hand … to break down as many barriers as we can to get things built in a short period of time.”
The funds include $2.55-billion in low-cost loans through the Canada Mortgage and Housing Corporation (CMHC)’s Apartment Construction Loan Program. Ottawa also announced $25.8-million in direct funding for outreach and shelter programs to address homelessness.
The rental project list includes two developments in the city’s own Housing Now program, both of which were first announced in 2018, at 777 Victoria Park Avenue and 50 Wilson Heights Boulevard. The latter broke ground in November, and $365-million in CMHC loans for that site was previously announced March 12.
The list also includes the Quayside site on the Toronto waterfront, where Google sister company Sidewalk Labs previously proposed a controversial development. The current project is being led by developers Dream Unlimited and Great Gulf Group. The new federal loans, according to the City of Toronto, will support the construction of 1,267 homes here.
“We’re excited to see all levels of government and sectors coming together to solve the housing crisis in Toronto,” said Michael Cooper, founder of the Dream Group of Companies, in an e-mailed statement. “We look forward to continuing our work with all levels of government to start building much needed housing.”
Several of the rental projects will benefit from a city incentive program, which indefinitely defers property taxes on selected rental projects. In all, the city said it is providing $234.83-million to the seven rental projects by reducing or waiving property taxes, development charges and other fees. Building industry groups have called for further measures to reduce such charges, which are only collected if development projects move forward.
Each of the developments is expected to break ground by the end of 2026.
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