The Canadian government has promised $2.55 billion in low-cost loans to support the construction of rental homes in Toronto. The financial support will help deliver a total of 4,831 rental homes across seven rental developments which will include more than 1,000 much needed affordable units.
This comes after Toronto’s city council passed a financial incentive package for rental builders that includes development charge relief and reduces property taxes for projects that promise that 20 percent of new units are rented at below-market rate prices. Construction could begin by the end of next year.
At a news conference, Toronto Mayor Olivia Chow referred to the “landmark agreement” and its capacity to reduce barriers to building new housing and securing affordable homes “for generations to come,” kickstarting a sector that has slowed thanks to higher interest rates and economic uncertainty.
The 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,” and will be used to expand outreach and enhance shelter services, specifically those that help connect people to permanent housing.
