News Release
April 28, 2022

Today, Mayor John Tory welcomed the delivery and craning of the modules that will bring 59 new permanent modular homes to 540 Cedarvale Ave. These new permanent supportive homes will provide a home to those experiencing or at risk of experiencing homelessness.

The Mayor was joined by Nathaniel Erskine-Smith, Member of Parliament for Beaches—East York, Deputy Mayor Ana Bailão (Davenport), Chair of the Planning and Housing Committee and Councillor Brad Bradford (Beaches-East York).

The three-story building is the result of a partnership between the City of Toronto and the federal and provincial governments, combining federal capital funding, provincial support to expedite the development through a Minister’s Zoning Order (MZO), and municipal financial incentives and expedited project delivery. The new permanent affordable homes will also include services that will support the health and well-being of residents who were experiencing homelessness, and will be built on land that was previously used as a parking lot.

Modular construction provides a unique opportunity to respond rapidly to Toronto’s urgent need to create more permanent affordable homes for people experiencing homelessness, while reducing pressure on the City’s shelter system and supporting climate change action. These high-quality and energy-efficient homes are prefabricated in a factory and then transported to the site where they are assembled. The benefits of modular construction compared to traditional construction include that homes can be built more quickly, are more cost-effective and contribute to lower carbon emissions that are normally produced during construction.

The building at 540 Cedarvale Ave. will offer safe, secure and affordable homes with 24/7 support services to individuals experiencing homelessness, including women, seniors, Indigenous peoples, racialized communities and those with disabilities. The 59 new homes will be studio apartments, each with a kitchen and a bathroom. The new building will also have common amenities for residents such as a dining room and a program space, as well as administrative offices and a commercial kitchen that can provide on-site meals for residents.

As an urgent response to the COVID-19 pandemic, in late 2020, City Council approved the COVID-19 Housing and Homelessness Recovery Response Plan aimed at expediting the delivery of 3,000 new affordable and supportive homes in 2021 and 2022 for people experiencing homelessness. The City is currently on track to exceed these targets and deliver more than 3,300 new affordable and supportive housing opportunities by the end of 2022, subject to confirmation of provincial operating funding. To that end, the City has requested $27 million in provincial operating funding in 2022 ($48 million per year annualized from 2023 and ongoing) for more than 1,600 supportive homes that are coming online this year, to ensure tenants receive the supports they need to achieve positive health and housing outcomes.

The homes at 540 Cedarvale Ave. are part of the second Phase of the Modular Housing Initiative (MHI), approved by City Council on April 30, 2020. One hundred homes were completed in the first phase at 321 Dovercourt Rd. and 11 Macey Ave. Phase Two of the initiative plans to deliver approximately 150 new modular homes with supports, including 39 Dundalk Dr., 175 Cummer Ave. and the site at 540 Cedarvale Ave. The MHI is funded through a partnership between the City and the federal government, with the City contributing $28.75 million in capital funding and the federal government providing $18.75 million in funding through Canada Mortgage and Housing Corporation (CMHC).

The creation of the new supportive housing at 540 Cedarvale Ave. is part of the HousingTO 2020-2030 Action Plan. The plan targets the approval of 40,000 new affordable rental homes with 18,000 supportive homes, including 1,000 modular homes, to help increase housing stability for Toronto residents. There are currently a total of 109 City-led or City-supported active affordable housing development projects, which will deliver an estimated 19,000 new affordable and supportive homes across the city.


“Building more affordable and supportive housing continues to be a key priority for me as Mayor and for our city. A big part of that work includes finding new and innovative methods to bring affordable housing as quickly as possible. Modular Housing has proven to be a unique concept that is allowing us to create housing in months not years. Now we can make permanent homes that will provide wraparound supports for those who are vulnerable in our city. I want to thank the Federal and Provincial governments for their ongoing commitment to building more housing in Toronto. We know we cannot do it alone and relationships with the other levels of government make this work all that much more possible.”

– Mayor John Tory

“Every Canadian deserves a safe and affordable place to call home. Through the Affordable Housing Innovation Fund, we’re supporting the creation of 59 homes for individuals and families in Toronto who need it most. Through the National Housing Strategy, we will continue to support Canadians in need and ensure that no one is left behind.”

– The Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion

“Too many people are on the streets or in the shelter system, and permanent solutions require stable homes. We need all levels of government to work together to end chronic homelessness, and I’m confident that Toronto’s modular housing will be a key part of that work, especially in partnership with respected local service providers.”

– Nathaniel Erskine-Smith, Member of Parliament for Beaches—East York

“As a City, we have said that building more affordable housing is important. The new homes at 540 Cedarvale Ave. are part of us living out that commitment. A vital part of City Council’s HousingTO 2020-2030 Action Plan, homes like these will help approximately 59 people end or prevent their homelessness. As we continue to implement the plan, we are able to continue to fulfil our commitments to Toronto residents and ensure that more people have access to the safe, affordable, supportive housing they need.”

– Deputy Mayor Ana Bailão (Davenport), Chair of the Planning and Housing Committee

“Providing more affordable housing is a priority, here in Beaches-East York and across Toronto. The permanent and affordable homes that will be on this site in a few short months will be of great benefit, providing not only safe and accessible housing, but also on-site supports for our new community members. 540 Cedarvale will be a place of opportunity and a new beginning for Torontonians exiting homelessness. I am so pleased to mark this milestone for this important project today. My thanks go out to so many members of the local community who provided valuable feedback throughout the planning and design process. I am proud to see the work continue to provide much-needed housing in our welcoming neighbourhood, and look forward to meeting our new neighbours this summer.”

– Councillor Brad Bradford (Beaches-East York)

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