Federal government promises $2.55B in low-cost loans to help Toronto build rental homes

CBC News

· Posted: Mar 19, 2025 10:54 AM EDT | Last Updated: 7 minutes ago

The national authorities says it volition connection billions successful low-cost, semipermanent financing to assistance physique thousands of rental units successful Toronto, including much than a 1000 affordable homes.

The $2.25 cardinal volition beryllium provided through Ottawa's Apartment Construction Loan Program. It comes aft Toronto metropolis assembly passed a bundle of fiscal incentives for rental builders that includes alleviation from improvement charges and a simplification successful spot taxes, truthful agelong arsenic 20 per cent of caller units are rented astatine discounted prices.

The financing volition spell toward 7 rental improvement projects selected by the metropolis that could beryllium nether operation by the extremity of adjacent year.

In all, it is expected to assistance present 4,831 rental homes, with astatine slightest 1,075 of those being offered astatine below-market rents, according to the city.

At a quality league Wednesday morning, Toronto Mayor Olivia Chow said the "landmark agreement" volition trim barriers to physique lodging and assistance unafraid 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 precocious sworn-in Prime Minister Mark Carney expected to telephone a drawback national predetermination wrong the coming days oregon weeks.

"This statement says unneurotic we are stronger. Partnership is what it takes," Chow said. She added the statement is "historic" due to the fact that it's the archetypal clip the national authorities has been "willing to batch of each the projects unneurotic and accidental to Toronto, 'we spot you present them.'"

Building has slowed, Chow says

Chow noted that a prolonged play of elevated involvement rates and present deepened economical uncertainty astir U.S. tariffs has resulted successful galore lodging projects successful the metropolis stalling out.

The 7 developments to beryllium supported with the financing see respective approved successful December and others being built nether the city's Housing Now program, which aims to physique mixed-use communities connected city-owned land.

The projects are:

• 1,267 rental homes astatine Quayside.
• 1,226 rental homes astatine 49 Ontario St.
• 767 rental homes astatine 50 Wilson Heights Blvd.
• 705 rental homes astatine 777 Victoria Park Ave.
• 370 rental homes astatine 250 Wincott Dr.
• 341 rental homes astatine 26 Gilder Dr.
• 155 rental homes astatine 3379-3385 Lawrence Ave. E.

Chow said determination is different $4.5 cardinal low-cost financing the metropolis could entree successful concern with Ottawa, but it is contingent connected matching backing from the provincial authorities that has not yet materialized.

Tuesday's announcement besides included a committedness of $25.8 cardinal implicit 2 years from the national authorities to assistance Toronto with its "immediate needs related to encampments."

According to the city, the backing volition beryllium utilized to grow outreach to stateless radical and heighten structure services, specifically those that assistance link radical successful encampments and shelters to imperishable housing.