Deputy Prime Minister announces $1.2 billion to build over 2,600 new rental homes in Toronto
November 14, 2023 - Toronto, Ontario - Department of Finance Canada
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Arif Virani, Minister of Justice and Attorney General, announced a federal investment of $1.2 billion to build 2,644 rental homes across seven new projects in Toronto, provided as fully repayable low-interest loans through the Rental Construction Financing Initiative.
The seven projects announced today will build:
- 855 rental homes at 373 Front Street East, with an investment of $444 million;
- 484 rental homes at 94 Eastdale Avenue, with an investment of $215 million;
- 389 rental homes at 55 Broadway Avenue, with an investment of $165.4 million;
- 390 rental homes at 325 Moriyama Drive, with an investment of $130 million;
- 233 rental homes at 1555 Queen Street East, with an investment of $126 million;
- 225 rental homes at 610 Martin Grove Road, with an investment of $93.7 million; and,
- 68 rental homes at 650 Kingston Road, with an investment of $34.1 million.
Increasing the overall supply of rental housing is crucial to creating stronger and more vibrant communities that Canadians can feel proud to call home. With today’s announcement, the Rental Construction Financing Initiative is on track to create more than 71,000 new rental housing units across Canada by 2027-28.
Today’s announcement is only the latest set of projects moving forward thanks to low-cost financing provided by the federal government, and is the next step in the federal government’s plan to make housing more affordable. The government will continue working with provincial, territorial, municipal, and Indigenous governments to build more homes, faster, to make housing more affordable for all Canadians, and to ensure everyone, including those most vulnerable, can find a safe and affordable place to call home.
“Every Canadian deserves a safe place to call home. With today’s investment through the Rental Construction Financing Initiative, our government is taking concrete action to help the citizens of Toronto access the rental housing they need. We will continue to do everything we can to make housing more affordable for Canadians from coast to coast to coast.”
– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Our government is focused on building homes. Through programs like the Rental Construction Financing Initiative, we are incentivizing the development of much-needed rental units; including these 2,644 units right here in Toronto. We will continue to make strategic investments through our National Housing Strategy to ensure every Canadian has a safe and affordable place to call home.”
– The Honourable Arif Virani, Minister of Justice, and Attorney General of Canada
“We need to boost housing supply. This is why we are making strategic investments, through programs like the Rental Construction Financing Initiative, to build much-needed rental units across the country. All Canadians deserve a safe place to build and live their lives in, and we will ensure this becomes a reality.”
– The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities
The more than $25 billion Rental Construction Financing Initiative provides fully repayable low-cost financing to encourage the construction of more purpose-built rental housing for middle income Canadians. It helps make the math work for rental projects to move ahead and helps create new housing supply, at a minimal cost to taxpayers.
Today’s announcement builds on the federal government’s plan to build more homes, faster, and make homes more affordable for Canadians. This plan includes:
- The Affordable Housing and Groceries Act, which would remove the Goods and Services Tax (GST) on new rental housing;
- The $4 billion Housing Accelerator Fund, which was launched earlier this year to cut red tape, address outdated local policies like zoning, which are preventing construction, and build more homes, faster;
- Unlocking $20 billion in new financing to build 30,000 more rental apartments per year by increasing the annual limit for Canada Mortgage Bonds from $40 billion to up to $60 billion;
- A two-year ban on non-resident, non-Canadians purchasing residential property to help curb speculation and ensure that houses are used as homes for Canadians to live in, rather than as financial assets for foreign investors;
- A one per cent annual Underused Housing Tax on the value of non-resident, non-Canadian owned residential property that is vacant or underused;
- Making sure that profits from flipping properties held for less than 12 months are taxed fully and fairly;
- Doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers to offset expensive closing costs involved in buying a first home;
- A new, refundable Multigenerational Home Renovation Tax Credit, to provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability, starting this year;
- Applying the Goods and Services Tax/Harmonized Sales Tax (GST/HST) to all assignment sales of newly constructed or substantially renovated residential housing, to help address speculative trading in the housing market;
- Launching a third round of the Rapid Housing Initiative, which is providing $1.5 billion to create 5,200 new affordable housing units for Canadians in severe housing need, with 25 per cent of investments going to housing projects targeted towards women;
- Allocating nearly $4 billion towards the government’s goal of ending chronic homelessness, through Reaching Home, Canada’s Homelessness Strategy; and,
- Delivering a top-up to the Canada Housing Benefit in December 2022, which provided low-income renters with a $500 payment to help with the cost of housing.
- November 7, 2023: Federal government unlocking 6 surplus federal properties to build more than 2,800 new homes in Calgary, Edmonton, St. John’s, and Ottawa
- October 31, 2023: New Tax-Free First Home Savings Account now helping over 250,000 Canadians save for their first home
- September 26, 2023: Government of Canada unlocking $20 billion in new financing to build 30,000 more apartments per year
- September 21, 2023: Government introduces legislation to build more rental homes and stabilize grocery prices
- March 17, 2023: Building more homes, faster
Media may contact:
Press Secretary and Senior Communications Advisor
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
Office of the Minister of Housing, Infrastructure and Communities
Canada Mortgage and Housing Corporation
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