TORONTO, March 19, 2025 /CNW/ - Today, the Government of Canada and the City of Toronto announced investments to build more homes and address encampments.
Building for Toronto
The federal government announced up to $2.55 billion in low-cost loans through the Apartment Construction Loan Program (ACLP) to help build more than 4,800 rental units, including at least 1,000 affordable rental units. The City of Toronto will provide approximately $234.83 million in estimated value of City benefits for these affordable and purpose-built rental homes. This ambitious partnership will drive down the cost of building by providing low-cost federal financing, conditional on the City of Toronto providing relief on development charges, fees and property taxes, to help build more homes, faster.
Today's announcement is in addition to the recent $975 million investment, which includes $325 million from the Government of Canada, to accelerate the delivery of Waterfront Toronto's revitalization plan that will contribute to creating over 14,000 new homes along Toronto's Waterfront at Quayside and Ookwemin Minising.
Responding to homelessness
The Government of Canada and the City of Toronto also announced their continued commitment to supporting people experiencing unsheltered homelessness, particularly in encampments. Under the Unsheltered Homelessness and Encampments Initiative (UHEI), the federal government is providing $25.8 million over two years and the City of Toronto will contribute $400 million.
Under Reaching Home's Designated Communities stream, the federal government is also allocating an additional $62.7 million to the City of Toronto through Budget 2024 funding, which is helping service providers in Toronto prevent and reduce homelessness.
Quotes
"Building more homes requires working together, and this partnership with the City will bring down costs and deliver more homes for Toronto."
The Honourable Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities
"Every Torontonian deserves an affordable place to call home. Today's landmark housing agreement will reduce barriers so more than 4,800 homes will be built faster. By working together with our federal partners, we are securing affordable homes in Toronto for generations to come."
Olivia Chow, Mayor of Toronto
Quick facts
- Subject to final approvals, seven selected projects will receive up to $2.55 billion in Apartment Construction Loan Program (ACLP) financing and $234.83 million in estimated value of financial incentives through City of Toronto programs for the construction of approximately 4,831 purpose-built rental units, include at least 1,075 affordable rental units.
- The ACLP is a key part of Canada's approach to addressing today's housing challenges. It was first introduced under the National Housing Strategy—launched in 2017 to ensure more people in Canada have a safe and affordable place to call home. More recently, the ACLP was further strengthened as part of Canada's Housing Plan, the government's most recent commitment to unlock millions of new homes and drive the change needed to solve Canada's housing crisis.
- The $55 billion ACLP provides low-cost financing to build new rental apartment projects homes for middle-class Canadians and creates a positive impact to the housing system at minimal cost to taxpayers.
- As of December 31, 2024, the government has committed $21.76 billion in low-cost loans through ACLP to support the creation of more than 56,000 rental units across Canada.
- Today's ACLP announcement could support approximately 1,200 units towards the 14,000 units along Toronto's Waterfront.
- The Government of Canada is also investing $200 million to support the completion of the Broadview Eastern Flood Protection project.
- The Government of Canada will continue to work with the City of Toronto, other municipalities, and stakeholders to support public infrastructure investments that facilitate the construction of homes under the Canada Housing Infrastructure Fund.
- The UHEI is helping reduce the number of people experiencing unsheltered homelessness, particularly those living in encampments. It is based on the deployment of a Community Encampment Response Plan in each targeted community, adopting an approach that promotes housing stability with support services to ensure the dignity of individuals.
- Through Reaching Home: Canada's Homelessness Strategy, the federal government is committed to preventing and reducing homelessness across the country in urban, Indigenous, rural, and remote communities.
- In Toronto, the Government of Canada is also investing a total of $82.7 million through the Indigenous Homelessness stream of Reaching Home, which includes an additional $18.4 million in new funding through Budget 2024. This funding is managed by the Aboriginal Labour Force Development Circle. This brings Toronto's total allocation to communities to $553.6 million from 2019-20 through 2027-28, through the regionally delivered streams of Reaching Home.
Associated links
- Apartment Construction Loan Program
- Canada's National Housing Strategy
- Canada's Housing Plan
- Governments Invest to Rapidly Build Housing, Create Jobs and New Destinations on Toronto's Waterfront
- Government of Canada announces additional agreements with municipalities on homelessness
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Web: Housing, Infrastructure and Communities Canada
SOURCE Department of Housing, Infrastructure and Communities
Contacts: For more information (media only), please contact: Sofia Ouslis, Press Secretary, Office of the Minister of Housing, Infrastructure and Communities, [email protected]; Media Relations: Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]
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