The City develops and implements housing policies to provide and maintain a diverse range of housing in terms of unit types, tenure, and affordability. Section 3.2.1 of the Toronto Official Plan sets out the City’s policies for preserving existing rental housing and securing new affordable housing.
Developments involving the demolition of existing rental housing units are required to provide tenant assistance and, in some cases, replacement rental units. A rental unit is defined as a self-contained set of rooms that is available for rent and contains both kitchen and bathroom facilities.
The Rental Housing Demolition and Replacement Handbook and Summary Brochure provide a guide for tenants and property owners involved in development applications where 6 or more rental housing units are proposed for demolition.
For more information, visit the Rental Housing Demolition web page.
Developments involving the demolition of dwelling rooms, such as those in multi-tenant (rooming) houses, are required to provide tenant assistance and, in some cases, replacement rental housing. A dwelling room is a room that is used as rental living accommodations and may contain kitchen or bathroom facilities, but not both.
A Rental Housing Conversion Application is required on sites with 6 or more residential units where existing rental housing is proposed to be severed or converted into any of the following: a non-residential use, living accommodations other than dwelling units, co-ownership, a condominium, a life lease project, freehold or other type of ownership.
Applications to convert rental housing will only be considered if all existing rental units have high-end rents or if City Council determines that the supply and availability of rental housing in the City of Toronto is in a healthy state and can meet the housing needs of current and future residents.
Inclusionary zoning requires affordable housing in new residential developments that are near public transit stations. Toronto’s inclusionary zoning requirements do not apply to development applications (rezoning, site plan or building permit applications) made before July 1, 2027.
For more information, visit the Inclusionary Zoning web page.
A Community Benefits Charge (CBC) is collected on developments that are at least 5 storeys in height and that add at least 10 residential units. The CBC may be collected as a payment at the time of building permit issuance or, subject to acceptance by City Council, as an in-kind contribution. New affordable housing may be considered as an in-kind contribution.
For more information, visit the Community Benefits Charge web page.
Affordable and Mid-range rents, as defined by the Official Plan, are available on the Setting Occupancy Costs for Affordable Housing web page.
The Affordable and Mid-range rent limits are used to set rents as part of by various City programs and are updated annually.
Affordable ownership prices for 2026, as defined by the Official Plan, are listed in the table below:
| Unit Type | Standard Condominium Fees | Indicator Income | Affordable Purchase Price (including HST) |
| Studio | $318 | $64,731 | $196,178 |
| 1-Bedroom | $474 | $82,112 | $238,336 |
| 2-Bedroom | $580 | $101,891 | $296,904 |
| 3-Bedroom | $800 | $123,467 | $345,112 |
Indicator incomes are calculated by adjusting the 2020 indicator incomes as reported by the 2021 Census for changes to the Consumer Price Index as reported by Statistics Canada for the Toronto Census Metropolitan Area, which was 139.9 as of January 1, 2020 and 167.7 as of January 1, 2026.
The interest rate used to calculate the 2026 affordable ownership prices is as reported by the Bank of Canada 5 Year Rate of 6.09 per cent on January 1, 2026.
The reported 2026 prices are subject to change based on a review of typical maintenance fees.