Today, the City of Toronto and the Government of Canada announced that Toronto is receiving up to $2.7 billion to accelerate housing supply and support new purpose-built rental housing. The City is also investing $703.7 million in funding and financial incentives to unlock these projects. Through this joint investment, 5,600 rental homes will be delivered in neighbourhoods across the city, marking another significant intergovernmental commitment to address the housing crisis and improve affordability for Toronto residents.
This investment builds on the City’s continued commitment to developing new housing opportunities, helping deliver more homes for current and future residents.
Intergovernmental partnership to build more homes
The Government of Canada, through its Apartment Construction Loan Program, is providing over $1.8 billion in low-cost financing for nine housing projects delivering more than 3,700 rental homes in Toronto.
Through Build Canada Homes, the federal government is providing an additional $310 million to advance more than 1,800 rental homes across nine additional housing projects on City-owned land. These nine City-led projects will deliver a mix of affordable, rent-geared-to-income, rent-controlled and supportive homes through partnerships with public, non-profit and Indigenous housing providers. In addition to expanding housing supply, this investment will support the local economy through procurement and job creation.
Today’s announcement reflects the City and the Government of Canada’s shared commitment to accelerate the delivery of affordable housing in Toronto. Most recently, the City, the Province of Ontario and the Government of Canada announced the Development Charge Reduction Program, totalling $1.5 billion of funding to reduce development charges by 40 to 60 per cent for more than three years, stimulating the industry while paying for vital infrastructure to support growth.
In addition, the City is launching a new phase of the Purpose-Built Rental Housing Incentives Stream using City resources, enabling development charges to be deferred indefinitely for projects with a minimum of 20 per cent affordable housing.
Together, these initiatives are helping to create the conditions needed to deliver more homes, faster, while supporting long-term affordability and complete communities across Toronto.
Quotes:
“Toronto is becoming a model for how a great city can build its way forward. Together with the City of Toronto, we are getting thousands of new rental homes built, across every part of the housing system, in strong, safe communities that people can afford. This is what is possible when governments build together.”
— The Rt. Hon. Mark Carney, Prime Minister of Canada
“Every Canadian deserves a safe, affordable place to call home. Through our partnership with the City of Toronto, we are aligning investments and working together to accelerate the construction of much-needed housing. By reducing barriers and speeding up delivery, we are helping build more homes and creating stronger, more affordable communities across the country.”
— The Hon. Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
“Today’s announcement shows what’s possible when governments work together. I want to thank Prime Minister Mark Carney, Minister Gregor Robertson and our federal partners for their commitment to building more homes in Toronto. Today’s investment means more people will have the opportunity to find a home they can afford, stay close to their communities and build a future in the city they love. Together, we are delivering the housing Toronto needs and creating a more affordable, caring city for everyone.”
— Olivia Chow, Chief Executive Officer of the City of Toronto.
Toronto is home to more than three million people whose diversity and experiences make this great city Canada’s leading economic engine and one of the world’s most diverse and livable cities. As an Official Host City for the FIFA World Cup 2026™ and the fourth largest city in North America, Toronto is a global leader in technology, finance, film, music, culture and innovation and climate action, and consistently places at the top of international rankings due to investments championed by its government, residents and businesses. For more information visit the City's website or follow us on X, Instagram or Facebook.