Ontario Construction Report staff writer
The City of Toronto and the federal government have announced up to $2.7 billion in funding, financing and incentives to support the construction of 5,600 rental homes across the city.
The federal government will provide more than $1.8 billion in low-cost loans through the Apartment Construction Loan Program for nine projects expected to deliver more than 3,700 rental units.
“Through our partnership with the City of Toronto, we are aligning investments and working together to accelerate the construction of much-needed housing,” said Gregor Robertson, federal minister of housing and infrastructure. “By reducing barriers and speeding up delivery, we are helping build more homes and creating stronger, more affordable communities across the country.”
Another $310 million from Build Canada Homes will help fund nine projects on city-owned land that are expected to add more than 1,800 rental homes. The developments will include affordable, rent-geared-to-income, rent-controlled and supportive housing.
Toronto is contributing $703.7 million through funding and financial incentives for the projects.
The announcement comes as governments continue to look for ways to increase housing construction amid rising housing costs and low rental vacancy rates.
The announcement also follows the launch of a $1.5-billion development charge reduction program involving the City of Toronto, Ontario and the federal government. The program reduces development charges on eligible housing projects for more than three years.
The city also said it is expanding its purpose-built rental housing incentive program by allowing eligible developments with at least 20 per cent affordable housing to defer development charges indefinitely.