The Rental Housing Supply Program (RHSP) supports the creation of a range of new rental homes that advance the City’s HousingTO 2020-2030 Action Plan, including:
The RHSP provides a range of financial supports including capital grant funding, pre-development loan funding, relief from select development-related fees and charges, and exemptions from property taxes to eligible projects and proponents.
The RHSP is delivered through five streams:
Project approval through the RHSP does not indicate City support or approval of any current or pending planning application(s). It is the responsibility of proponents to secure all planning approvals, building permits, and any other required City approvals through those independent processes.
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Participation and funding from all orders of government is required to deliver the HousingTO Plan. The Federal Government has programs to support the creation of new affordable rental housing through the Canada Mortgage and Housing Corporation (CMHC) and Build Canada Homes (BCH). All applicants are strongly encouraged to consider these and other funding programs when planning to create new affordable and rental housing.
To be eligible for the RHSP, projects must meet the City’s affordable housing requirements. At least 20 per cent of a project’s new units must be Affordable Rental housing, with rents meeting City affordability levels and rent controls for a minimum of 40 years.
Specific program streams have additional eligibility requirements. Please review program materials as calls for applications are released.
The RHSP uses an income-based definition of Affordable Rental Housing, which aligns with both the City’s Official Plan and the Provincial definition under the Development Charges Act. The RHSP will apply the lower of the provincially-set affordable rents, as issued in “Affordable Residential Units bulletin ”, and the City’s income-based definition of affordable rental housing under the Official Plan, as they are both updated.
| Unit Type | RHSP Affordable Rents |
|---|---|
| Dwelling room | $899* |
| Studio | $1,127 |
| 1-bedroom | $1,426 |
| 2-bedroom | $1,985 |
| 3-bedroom | $2,250 |
| 4-bedroom | $3,245** |
*Dwelling room affordable rents are based on the City of Toronto’s Official Plan definition for Dwelling Room Tier 1 Affordable Rents (60% of AMR for Studio units)
** 4-bedroom affordable rents for RHSP are calculated based on the lower of the household income for a 4-person renter household at the 60th income percentile and the average market rents for 4+ bedroom apartment units in the City of Toronto, as determined by CMHC.
RHSP Current Rent-Controlled Rents
The RHSP includes measures to support the delivery of rent-controlled homes by Community Housing Providers, with a target of approving 17,500 units by 2030. The City defines new Rent-Controlled Homes as rental homes where monthly rents are set above the affordable rents, and at or below 150 per cent of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation (CMHC).
| Unit Type | 150% Average Market Rent |
|---|---|
| Studio | $2,184 |
| 1-bedroom | $2,572 |
| 2-bedroom | $2,977 |
| 3-bedroom | $3,385 |
| 4-bedroom | $4,867* |
* 4-bedroom rents for RHSP are based on 150% of average market rents for 4+ bedroom apartment units in the City of Toronto, as set by CMHC.
The Community Housing Pre-Development Fund (CHPF) is an interest-free repayable loan program available to Community Housing Providers to fund pre-development activities required to develop new Affordable Rental Homes. CHPF supports the Community Housing sector’s development capacity by providing access to funds to advance affordable housing projects toward construction start.
Applicants must demonstrate the project’s viability and their ability to successfully advance the project through the pre-development stages to construction start. To allow for an objective assessment of project viability, projects will be required to have completed a Pre-Application Consultation (PAC) with the City of Toronto’s Development Review Division prior to submitting a CHPF application.
The CHPF loan amounts are determined based on details in a business case submitted as part of the application, which should outline specific activities and expenditures to advance the project. Loan amounts will not exceed $50,000 per Affordable Rental Home. Repayment will be required either when the proponent receives their first construction funding or financing draw or 3 years after CHPF approval, whatever comes first.
The Call for Applications is currently open on a rolling basis.
The Affordable Rental and Rent-Controlled Housing Incentives (ARRCHI) stream supports Community Housing Providers and private organizations to build new Affordable Rental and Rent-Controlled Homes by providing municipal financial incentives and supports. Financial incentives available include a waiver of planning application and building permit fees, and an exemption of Development Charges (DCs), Community Benefits Charges (CBCs), and parkland dedication (where not already exempted under provincial legislation). Eligible Rent-Controlled and Affordable Rental Homes can also receive property tax exemptions for the duration of affordability (subject to City Council approval). incentives for Rent-Controlled Homes are only available to Community Housing Providers.
Incentives are forgiveness of fees that would otherwise be payable to the City. Any fees or charges already paid by the applicant would not be refunded. These financial incentives are provided subject to proponents entering into a Contribution Agreement with the City and meeting associated requirements throughout construction and operating years.
The Call for Applications is currently open on a rolling basis.
The Indigenous Funding Stream will provide capital grant funding and pre-development loan funding for eligible Indigenous organizations to advance their affordable housing projects. Through the HousingTO 2020-2030 Action Plan, City Council set a target of approving 5,200 new affordable rental and supportive homes that will be delivered by Indigenous housing providers for Indigenous people. This target is part of the City’s commitment to truth, justice, and reconciliation. The City has a Memorandum of Understanding (MOU) with Miziwe Biik Development Corporation (MBDC) to advance this work and grow partnerships with Indigenous organizations.
More information about the program and funding available will be provided when the Call for Applications is launched, anticipated in Spring 2026.
The Capital Funding stream provides grant funding to support the development of Affordable Rental Homes. Eligible Community Housing Providers and private sector housing organizations can receive a grant to close funding gaps and accelerate construction starts for projects that prioritize key outcomes as identified by the City.
There are currently no open Calls for Applications. Any future calls will be made based on funding available in the City’s budget.
The Purpose-Built Rental (PBR) Housing Incentives stream is unlocking new purpose-built rental housing supply while also securing the creation of new affordable rental homes in projects that can rapidly begin construction.
The PBR stream provided an indefinite deferral of development charges for market rate Purpose-built Rental Homes that contain a minimum of 20 per cent Affordable Rental Homes provided for a minimum of 40 years. The Affordable Rental Homes in these projects also received City financial incentives.
This Stream is currently closed. The City continues to advocate for funding from other orders of government to launch a second phase.
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