Build Canada Homes announces expanded partnership to advance supportive and transitional housing in Toronto

TORONTO, Oct. 1, 2026 /CNW/ -- Canada is facing a housing crisis where far too many Canadians are struggling to find homes they can afford. Canada's new government is stepping up with a bold new approach and unprecedented investments to increase the housing supply in Canada.

Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada, joined Olivia Chow, Mayor of Toronto, and representatives from Build Canada Homes (BCH), the University Health Network (UHN), UHN Foundation and the City of Toronto to announce federal support for the next phase of Toronto's Social Medicine Housing Initiative.

This commitment is part of a broader effort by UHN and the City of Toronto to scale the Social Medicine Housing Initiative across three sites, with the intent to add approximately 200 supportive homes for people experiencing homelessness and living with complex health needs.

As part of this initiative, Build Canada Homes will provide $25 million to support the construction of 80 supportive housing units at the first of the three sites. The broader initiative also includes a $20 million contribution from the UHN Foundation and $19 million from the City of Toronto. These investments will help advance efforts to bring health care and housing together. The broader expansion would bring the Social Medicine Housing Initiative to more than 300 homes overall, representing one of the most significant efforts in Canada to bring health care and housing together.

The Social Medicine Housing model recognizes housing as a critical social determinant of health. By integrating deeply affordable housing with primary care, mental health and addictions services, and other community supports, it helps improve health outcomes, increase housing stability, and reduce reliance on emergency and acute care systems.

The model was first demonstrated through Dunn House, Canada's first Social Medicine housing project which opened in 2024 and provides homes for 51 residents formerly experiencing homelessness. Early results showed a 52 per cent reduction in emergency department visits and a 79 per cent reduction in hospital length of stay among residents, generating approximately $2.1 million in hospital savings in less than two years.

Building on the success of the original Dunn House project, Build Canada Homes invested nearly $22 million in Dunn House Phase 2, called Spring House. The project, being delivered by CreateTO, the City of Toronto's strategic real estate agency, will create 54 new supportive homes for seniors experiencing homelessness, with integrated health and community supports. The project is expected to break ground in late 2026.

Today's announcement represents the next phase in that partnership. Through this latest investment, Build Canada Homes, the University Health Network, and the City of Toronto are expanding a proven model that is improving outcomes for residents while helping reduce pressure on public systems.

Together with the Government of Canada's recent partnership with the City of Toronto to deliver more than 5,600 new rental homes, this investment reflects a commitment to increasing housing supply across the full continuum of housing need, including supportive housing for people experiencing homelessness and complex health challenges.

Quotes

"Investing in the Dunn House model is critical to solving the housing crisis across the continuum. This investment will deliver urgently needed supportive housing for those who need it most. When we pair innovation with compassion, we create homes that strengthen communities and provide vulnerable Canadians with the stability and care they deserve."
-- The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

"Dunn House is one of the most inspiring projects in Canada today. Dr. Andrew Boozary and his team have shown what is possible when we stop treating housing and healthcare as separate challenges. The results are extraordinary. People gain stability, dignity, and support. Health outcomes improve. Pressure on hospitals falls. This is exactly the kind of bold, practical innovation that changes lives and strengthens communities."
-- The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario

"Supportive housing at Dunn House creates safe and dignified homes and has made our community in Taiaiako'n-Parkdale-High Park better. I've seen it and heard it from residents, neighbours and frontline workers. This new phase of Dunn House will change the lives of 80 people and their families."
-- Karim Bardeesy, Member of Parliament for Taiaiako'n-Parkdale-High Park

"The Dunn House model is working. It's helping people build stable lives, access vital resources, and stay off the street and out of the emergency room. The City of Toronto is proud to partner with the federal government and University Health Network to advance Dunn House Phase 3, so more people can benefit from social medicine supportive housing. This is a very Canadian solution: one that is compassionate, coordinated and comprehensive."
-- Olivia Chow, Mayor of Toronto

"Dunn House has shown what is possible when housing and healthcare work together. Through this investment, Build Canada Homes is helping scale a proven model that creates supportive homes, improves outcomes for residents, and delivers lasting impact for communities."
-- Ana Bailão, CEO, Build Canada Homes

"At UHN's Gattuso Centre for Social Medicine, we have demonstrated what is possible when housing, health care and social supports come together around the needs of patients. What began as Canada's first hospital-led supportive housing initiative has evolved into a proven model of care, made possible through the commitment of our government and community partners and the generosity of our Foundation. This investment will extend that model to 200 more patients with complex health and social needs and help scale a made-in-Canada approach to prescribable housing that can strengthen health systems and communities across the country."
--  Dr. Kevin Smith, President & CEO, University Health Network (UHN)

"Dunn House proved something simple: housing is health care. When people moved into housing from the street and the shelter system, emergency department visits fell by more than half and hospital bed days dropped by nearly 80 per cent. That's what happens when you treat the conditions that make people sick, not just the symptoms. This investment takes the Social Medicine Housing Initiative and scales it to more than 200 new homes -- the largest advancement in housing and health care in the country."
-- Dr. Andrew Boozary, Founding Executive Director, Gattuso Centre for Social Medicine, University Health Network

"Today's announcement is a powerful reminder of what can happen when a community comes together around a shared purpose. Our donors believed in this vision from the beginning, helping UHN test and prove a new model of care that has dramatically improved the lives of our city's most vulnerable patients, and thanks to this expansion, will improve many more. We are incredibly grateful to every donor, partner and advocate who has helped make this milestone possible, and are proud to continue helping Canada's #1 hospital build a future where everyone has the support they need to live healthier lives."
-- Julie Quenneville, CEO of UHN Foundation

Quick Facts

• Build Canada Homes will invest $25 million to support the delivery of approximately 80 new supportive homes through the next phase of the Social Medicine Housing Initiative. The project is expected to leverage additional investments from local partners, including the University Health Network and the City of Toronto.
• Consistent with the Social Medicine approach, the project will be located near Toronto Western Hospital, helping connect residents to healthcare, mental health, addictions and other community supports. Residents will have on-site access to affordable housing alongside integrated health, mental health, addictions, and community supports tailored to their needs.
• Early results from Dunn House, Canada's first Social Medicine housing project, showed a 52 per cent reduction in emergency department visits, a 79 per cent reduction in hospital length of stay, and approximately $2.1 million in hospital savings within its first two years of operation.
• Build Canada Homes funding remains subject to due diligence, underwriting, funding availability, required approvals, and the execution of definitive agreements. 
• Additional funding and incentives from the City of Toronto, valued at approximately $27 million, remain subject to City Council approval.

About Build Canada Homes
Build Canada Homes is a federal Crown corporation with the mandate to scale up the supply of affordable housing across Canada. By leveraging public lands, deploying flexible financial tools, and acting as a catalyst for modern methods of construction, Build Canada Homes is driving a more productive and innovative homebuilding sector.

SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Arianna Durgerian, Press Secretary, Office of the Minister of Housing and Infrastructure, [email protected]; Build Canada Homes, [email protected], Bch-mc.ca