TORONTO, July 17, 2026 /CNW/ -- Far too many Canadians are struggling to find homes they can afford. Solving Canada's housing crisis requires immediate action to bring down costs, cut red tape, and build homes more quickly. The Government of Canada is stepping up with a bold new approach to build affordable housing across the country. We are focused on building great neighborhoods that Canadians want to, and can afford to live in.
Central to that work, the Government of Canada has launched Build Canada Homes, which is helping increase the pace of affordable homebuilding. Build Canada Homes is also helping fight homelessness by building transitional and supportive housing – working with provinces, territories, municipalities, and Indigenous communities. It is building deeply affordable and community housing for low-income households and partnering with private market developers to build affordable homes for the Canadian middle class.
As part of the Government of Canada's broader efforts to respond to the housing crisis, investments are being made across the housing continuum to respond to the needs of communities across Canada.
Today, the federal government announced over $133 million in funding through the Affordable Housing Fund to help build 294 affordable, rental homes in Toronto. Lead by the Missanabie Cree First Nation, 140 Merton Street is a 29-storey mixed-used building primarily focusing on senior Indigenous tenants. The building will include community spaces, games room equipped with a kitchen, dining area, and recreational amenities. Adjacent to this space is a large ceremonial and smudging room, which can be opened to create a single, expansive gathering area.
The announcement was made by Leslie Church, Member of Parliament for Toronto--St. Paul's, on behalf of the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada alongside Chief Jason Gauthier, Missanabie Cree First Nation.
The Government of Canada is making the housing investments that will help strengthen Canadian supply chains and create good jobs at every step of the homebuilding process – helping to build more homes and a stronger Canadian economy at the same time.
Quotes:
"Our Government is investing in affordable housing here in Toronto and across Canada to help more young Canadians, families and seniors find a home that works for them. With our partners, Missanabie Cree First Nation, we are working to create new homes for Canadians priced out of the market, with a focus on Indigenous seniors. This development will bring much-needed affordable housing and new, dedicated community space to Midtown Toronto. Close to transit, grocery options and schools, 140 Merton is an example of the kinds of innovative housing partnerships our government is delivering to make housing abundant and affordable across Canada." – Leslie Church, Member of Parliament for Toronto--St. Paul's
"I want to acknowledge the leadership of Missanabie Cree First Nation in bringing forward a vision for housing that is rooted in culture, community and care. Projects like this remind us of the importance in creating spaces that not only provide affordable housing, but foster belonging, dignity and wellbeing, where Indigenous Elders can stay connected to their community and traditions." – The Honourable Mandy Gull-Masty, Minister of Indigenous Services Canada
"140 Merton St. demonstrates what can be achieved when governments and Indigenous partners work together to create housing that is both affordable and community-focused. Through more than $28 million in City funding and financial incentives, this project will provide Indigenous Elders and seniors with stable homes, culturally meaningful spaces and access to the supports they need. Projects like this help us deliver a more affordable, caring and safe city for all Torontonians." – Olivia Chow, Mayor of Toronto
"Peyakotenaw, meaning One Family, is far more than another building on Merton Street. It represents the continuation of our Nation's long journey to create culturally grounded, welcoming homes for our People and for all who wish to live alongside us. In our Cree traditions, Elders hold a central place in our communities, and this building reflects those values by providing a home designed with the needs of our Elders and other seniors in mind. Peyakotenaw reflects how Missanabie Cree approaches every off reserve project; we build for our members, but always with open arms for other Indigenous People and for the many cultures that make Toronto the vibrant community it is. Many of our members were displaced from our traditional territory and have made Toronto their home for generations. They live among neighbours from every corner of the world, and this diversity strengthens us. With Peyakotenaw, we honour our history, share our culture, and invite everyone to live together in a spirit of respect, belonging, and family." -- Chief Jason Gauthier, Missanabie Cree First Nation & President, Missanabie Cree Affordable Housing Corporation
"We are honoured to be part of the 140 Merton Street project with Missanabie Cree First Nation and the City of Toronto. This project demonstrates that affordable housing can deliver units at scale while reflecting the identities, traditions and needs of the community it serves." – Nick Gefucia, Senior Vice President, EllisDon llisdon
Quick Facts:
- The Affordable Housing Fund (AHF) provided funding through low-interest and/or forgivable loans or contributions to partnered organizations for new affordable housing and the renovation and repair of existing, affordable and community housing. This was a $16.1 billion program under the National Housing Strategy (NHS) that gave priority to projects that help people who need it most, including women and children fleeing family violence, seniors, Indigenous Peoples, people living with disabilities, those with mental health or addiction issues, Veterans, and young adults. The application portal for AHF is now closed as all funding has been committed.
- As of December 2025, the Government of Canada has committed $14.44 billion to support the creation of over 56,900 units and the repair of over 174,700 units through the Affordable Housing Fund.
- On September 19, 2025, the Government of Canada announced $1.5 billion top-up in loans for the AHF's New Construction Stream, to support the creation of over 5,000 new units starting in 2025-26. Additionally, the AHF's Rapid Housing Sub-Stream will be accelerated, by pulling $385 million in funding from future years.
- Funding provided for 140 Merton Street is as follows:
- $133 million from the federal government, through the Affordable Housing Fund
- $150,000 from CMHC Seed Funding
- $18.6 million from the City of Toronto
- $10 million in City of Toronto Incentive
- $1 million from Indigenous Services Canada, through the Community Opportunity Readiness Program
Additional Information:
- Visit canada.ca/housing for the most-requested Government of Canada housing information.
- Build Canada Homes is ready to partner with organizations committed to increasing the supply of affordable housing across Canada. Learn more about the portal and the Investment Policy Framework.
- Canada Mortgage and Housing Corporation (CMHC) is a federal Crown corporation and the foundation of Canada's housing system. For over 80 years, CMHC has supported the functioning of housing markets across the country through housing finance solutions -- including mortgage loan insurance and securitization -- while providing trusted, unbiased data, research and market intelligence to inform policy and decision making. Through its national presence, deep expertise in housing economics and finance, and a system-wide perspective, CMHC helps foster a more stable, well-functioning housing market that supports households, communities and the broader economy.
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SOURCE Canada Mortgage and Housing Corporation (CMHC)
Contacts: Arianna Durgerian, Office of the Minister of Housing and Infrastructure, [email protected]; Media Relations, Canada Mortgage and Housing Corporation, [email protected]
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