$2.7 Billion Toronto Housing Partnership Rental Projects

A major federal and municipal housing investment is set to move 18 Toronto rental developments toward construction, representing more than 5,600 new homes across the city.

The Government of Canada and City of Toronto have announced a $2.7 billion partnership aimed at providing the financing needed to advance projects that have already been planned, permitted or approved but have faced challenges getting construction underway.

Approximately 4,500 of the new homes are expected to be under construction by the end of 2026.

The portfolio includes affordable, supportive, rent-geared-to-income, rent-controlled and market rental housing.

Two Major Funding Streams

The 18 developments are divided between two federal funding and financing programs.

Build Canada Homes is providing $310 million toward nine primarily non-profit projects on City-owned land. Together, those developments will provide 1,885 rental homes, including 739 affordable units.

The Canada Mortgage and Housing Corporation (CMHC) is providing $1.8 billion in low-interest financing for nine additional projects being advanced by private-sector and development partners. Those projects will provide 3,720 rental homes, including 1,079 affordable units.

Combined, the two groups account for 5,605 new rental homes.

Storeys reports that the City of Toronto is also contributing land at nominal values along with more than $530 million in capital funding and financial incentives, including municipal and school property tax exemptions for periods of up to 99 years.

Nine Projects Receiving $310 Million Through Build Canada Homes

805 Wellington West - Building A

Owner: CreateTO

Units: 81 supportive housing units

An eight-storey building will use volumetric modular construction. Homes First Society will operate the supportive housing program.

15 Denison Avenue

Owner: Indigenous non-profit housing provider to be selected

Units: 100 supportive housing units

The project will use panelized construction. The completed property is expected to be conveyed to an Indigenous non-profit housing provider following an RFP process.

150 Queens Wharf Road

Owner: Toronto Community Housing Corporation

Units: 268, including 85 affordable units

The Housing Now project is planned for a vacant site. Earlier plans contemplated a 29-storey, 282-unit tower, but the development has since been revised to 37 storeys.

405 Sherbourne Street

Owner: Toronto Community Housing Corporation

Units: 301, including 100 affordable units

An existing parking lot will be redeveloped with a building articulated through 26-storey and 35-storey tower components.

1113-1125 Dundas Street West

Owner: CreateTO

Units: 74, including 17 affordable units

This project will use low-carbon mass timber construction and energy-efficient design to create 74 rent-controlled homes. Construction has already broken ground.

158 Borough Drive

Owner: CreateTO

Units: 425, including 118 affordable units

Located beside Scarborough Civic Centre and Scarborough Town Centre, this transit-oriented development is the largest of the nine projects receiving Build Canada Homes funding.

3326 Bloor Street West

Owner: CreateTO

Units: 301, including 78 affordable units

This represents Building A of the planned four-tower Bloor-Islington development. The larger project is expected to contain 1,145 units and will be directly integrated with a new Islington TTC station.

C1 Bayside

Owner: Waterfront Toronto

Units: 160, including 50 affordable units

C1 Bayside will form part of Waterfront Toronto's larger Bayside development.

Parkdale Hub

Owner: CreateTO

Units: 175, including 111 affordable units

The project involves redevelopment and revitalization of a group of existing public and community facilities, including the Masaryk-Cowan Community Recreation Centre and Parkdale Library Branch.

Total Build Canada Homes Portfolio: 1,885 units, including 739 affordable units.

Nine Projects Receiving $1.8 Billion in CMHC Financing

49 Ontario Street - East Tower

Owner: Dream + CentreCourt Developments

Units: 601, including 191 affordable units

The larger development consists of 45- and 49-storey towers totaling 1,226 units.

49 Ontario Street - West Tower

Owner: Dream + CentreCourt Developments

Units: 625, including 190 affordable units

This is the second tower in the 1,226-unit 49 Ontario Street development.

55-75 Brownlow Avenue

Owner: Menkes Development

Units: 733, including 184 affordable units

The building represents the first tower of a two-tower development originally proposed as condominiums. Tower One was subsequently revised to purpose-built rental housing.

130 Elizabeth Street - Toronto Coach Terminal

Owner: CreateTO

Units: 547, including 144 affordable units

The 43-storey building is part of the redevelopment of the former Toronto Coach Terminal. Plans also include a specialized non-patient medical facility developed with University Health Network for preparing organs for transplant.

610 Bay Street - Toronto Coach Terminal

Owner: CreateTO

Units: 280, including 74 affordable units

The second building in the Toronto Coach Terminal redevelopment will rise 16 storeys and incorporate a Paramedics Hub that will eventually be transferred to City ownership.

7 St. Dennis Drive

Owner: Osmington Gerofsky and WJ Properties

Units: 474, including 95 affordable units

The project represents Phase One of a three-phase Flemingdon Park master plan expected to eventually provide approximately 2,300 homes.

72 Perth Avenue

Owner: Castlepoint Numa + Hazelview Investments

Units: 255, including 104 affordable units

The 18-storey rental tower has already entered construction.

3385 Lawrence Avenue East - Greencedar Commons

Owner: Heartwood Investments

Units: 155, including 47 affordable units

Plans call for an 11-storey mid-rise development. Construction will involve demolition of an existing church while retaining an existing six-storey apartment building.

1552 Weston Road

Owner: Mahogany Management

Units: 50, all affordable

All 50 units will carry a 40-year affordability requirement, while 20 units will receive deeper affordability through a City rent supplement subsidy.

Total CMHC Financing Portfolio: 3,720 units, including 1,079 affordable units.

Construction Opportunities Across Toronto

The scale and variety of these projects could generate opportunities across multiple segments of Toronto's construction industry.

The portfolio ranges from high-rise concrete rental towers and mid-rise developments to modular housing, panelized construction, mass timber buildings, transit-oriented projects and adaptive redevelopment.

Some projects are already underway, while others are being positioned to move into construction as financing becomes available.

Construction Trades Involved

With 18 separate projects using different building systems and construction methods, trade requirements will vary considerably from site to site. Likely opportunities include:

• General contractors and construction managers
• Excavation and site preparation contractors
• Demolition contractors
• Shoring and underpinning contractors
• Caisson, piling and foundation contractors
• Concrete forming and reinforcing contractors
• Structural steel contractors
• Mass timber contractors and suppliers
• Modular and prefabricated building contractors
• Panelized construction specialists
• Masonry contractors
• Building envelope contractors
• Roofing and waterproofing contractors
• Curtain wall, glazing and window contractors
• Mechanical contractors
• HVAC contractors
• Plumbing contractors
• Electrical contractors
• Fire protection contractors
• Elevator contractors
• Drywall and insulation contractors
• Carpentry and millwork contractors
• Flooring contractors
• Painting and finishing contractors
• Kitchen and cabinetry contractors
• Appliance suppliers and installers
• Landscaping and site-work contractors
• Road, sidewalk and streetscape contractors
• Bicycle and vehicle parking contractors
• Energy-efficiency and building-controls contractors

 

More Than 4,500 Homes Could Start Construction This Year

The most significant aspect of the $2.7 billion partnership for contractors and suppliers is the anticipated pace of construction.

Of the 5,605 rental homes represented by the 18 projects, approximately 4,500 are expected to enter construction by the end of 2026.

For Toronto's construction industry, that creates a substantial pipeline spanning high-rise residential, affordable housing, supportive housing, modular construction, mass timber and mixed-use development.

Rather than funding a single massive development, the program distributes construction activity across 18 sites and several Toronto neighbourhoods, creating opportunities for contractors, subcontractors, suppliers and specialty trades as the individual projects advance.