Canada, Ontario, and Toronto work together with Build Canada Homes to invest in Dunn House 2.0 to provide supportive housing in Toronto

TORONTO, Jan. 20, 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 increase the supply of housing in Canada, and launched Build Canada Homes, a new federal agency that will build affordable housing at scale, while catalyzing a more productive homebuilding industry.

As part of the initial $13 billion investment, Build Canada Homes was given the mandate to move quickly. One of the early initiatives included $1 billion to be deployed to build transitional and supportive housing for people who are homeless or at risk of homelessness.

Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada announced that the federal government, through Build Canada Homes, the Province of Ontario and the City of Toronto are partnering with the University Health Network (UHN) to support the creation of Dunn House Phase 2, which will provide new supportive housing in Toronto's Parkdale community. The federal government is investing $21.6 million for the development, with the Province of Ontario providing up to $2.6 million in annual operational funding, and the City of Toronto leading the delivery of these new homes as a public developer.

Dunn House Phase 2 will build on the success of Canada's first-ever Social Medicine Housing initiative. Phase 2 will deliver 54 rent-geared-to-income studio units for at-risk seniors, with all residents having access to health and social services on-site. On behalf of the City, CreateTO will develop the site using modular construction to reduce costs and accelerate delivery, helping to get homes built faster for those who need them most.

Phase 2 reflects a highly collaborative, community-driven approach. The model was developed by the University Health Network's Gattuso Centre for Social Medicine, the City of Toronto, and community partners. It recognizes that stable housing is a cornerstone of good health and integrates supports that address key social determinants of health, including housing stability, food security and access to care.

Today's investment is an example of Build Canada Homes' ability to move quickly and to increase the supply of affordable housing, with a focus on projects that are ready to be built and integrate innovation in its construction.

Quotes

"Investing in projects like Dunn House Phase 2 is critical to solving the housing crisis at all ends of the spectrum. This investment will deliver urgently needed supportive housing for those who need it most. By embracing modern construction methods, we can reduce build times, cut material waste, and lessen environmental impacts. 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

"Protecting our most vulnerable is a critical part of our plan to Protect Ontario. By partnering with other levels of government and embracing innovative projects and approaches, we are advancing our goal to ensure everyone in Ontario has a safe place to call home."

-- The Honourable Rob Flack, Ontario Minister of Municipal Affairs and Housing

"We are proud to be collaborating with the Government of Canada and the Province of Ontario on Dunn House Phase 2. The first phase demonstrated that social medicine supportive housing can significantly improve care while providing stable homes. We are excited to expand this work with our federal and provincial partners. It is exciting to see all levels of government working together to build a safer, more affordable, and caring city."

--   Mayor Olivia Chow, City of Toronto

"Dunn House has become a source of pride for our community. We've seen firsthand how this model brings stability, dignity, and better health outcomes to people who need it most. This next supportive housing project in Parkdale builds on what has already been demonstrated to work, with every housing unit holding the power to dramatically change someone's life for good. It's investments like these that lead to better lives, and that make our neighbourhood safer and more livable for everybody."

-- Karim Bardeesy, Parliamentary Secretary to the Minister of Industry and Member of Parliament for Taiaiako'n--Parkdale--High Park

"Building on the success of Dunn House, Phase 2 exemplifies what is possible when every partner pulls in the same direction. By bringing together all orders of government, a leading healthcare institution, and committed nonprofit organizations, we are delivering a model of supportive housing that is greater than the sum of its parts. These partnerships are at the heart of Build Canada Homes' mandate -- they allow us to accelerate delivery, drive innovation, and ensure that projects like this meet the real needs of communities."

--   Ana Bailão, Chief Executive Officer of Build Canada Homes

"Dunn House has generated strong early evidence demonstrating the essential role of secure housing in improving health outcomes for individuals for whom emergency departments too often serve as the front door to care. We are deeply grateful to our government partners for their historic investment, which enables the next phase of this work--applying the Dunn House model to provide focused housing for at-risk seniors who are frequent users of emergency rooms, strengthening the continuum of care while reducing avoidable strain on the healthcare system."

--   Dr. Kevin Smith, President and Chief Executive Officer of University Health Network

Quick facts

• Dunn House Phase 2 will use modular construction to provide 54 rent-geared-to-income studio units for individuals at risk of homelessness.
• Early data from Dunn House demonstrates the transformative impact of integrating housing into healthcare. Analysis of healthcare utilization of Dunn House tenants shows a 52% reduction in Emergency Department (ED) visits and a 79% drop in hospital bed days, leading to $2.1 million in predicted annual cost savings.
• Launched on September 14, 2025, Build Canada Homes is Canada's new federal agency with a mandate to scale up the supply of affordable housing. By leveraging public land, flexible financial tools and modern methods of construction, the agency is catalyzing a more productive and innovative homebuilding industry.
• Budget 2025: Building Canada Strong provided Build Canada Homes an initial capitalization of $13 billion to unlock stalled projects, attract private and philanthropic investment, and scale up innovative construction methods that reduce costs and accelerate delivery. 
• In 2024-25, the Ontario government invested more than $1.7 billion to support those struggling with homelessness, including Ontario's Homelessness Prevention Programs, which are 100 per cent provincially funded and delivered.
• Through Ontario's Homelessness Prevention Program and Indigenous Supportive Housing Program, Service Managers and Indigenous program administrators have the flexibility to allocate provincial funding to programs and services that address and prevent homelessness such as rent supplements, homeless shelters, and supportive housing including capital projects.
• Federal funding for Dunn House Phase 2 is subject to a signed contribution agreement. 

Associated Links

• Build Canada Homes
• Build Canada Homes' Investment Policy Framework
• Build Canada Homes Portal
• Budget 2025: Canada Strong

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SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Renée LeBlanc Proctor, Senior Communications Advisor and Press Secretary, Office of the Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]