The Government of Canada and the City of Toronto have announced a significant investment in affordable, purpose-built rental construction via the Apartment Construction Loan Program (ACLP). The federal government is providing $2.55 billion in low-cost loans to help build more than 4,800 rental units, including 1,000 affordable rental units. Meanwhile, the City of Toronto will provide approximately $234.83 million in estimated value of City benefits for these affordable and purpose-built rental homes.
According to the governments, this partnership will help drive down the cost of building and hasten housing construction by providing low-cost federal financing, conditional on the City of Toronto providing relief on development charges, fees and property taxes. These funds are in addition to the recently announced $975 million investment to accelerate the delivery of Waterfront Toronto’s revitalization plan, creating over 14,000 new homes along Toronto’s Waterfront at Quayside and Ookwemin Minising.
“Every Torontonian deserves an affordable place to call home” said Toronto Mayor Olivia Chow. “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.”
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.
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.
