Canada Housing Market

City staff in Toronto are calling on the council to invest $351 million into affordable housing projects to facilitate the construction of 6,000 new rental units for low-income tenants and young, middle-class families. This ambitious plan aims to address the city’s affordable housing crisis and ensure these units remain affordable for at least 40 years.

Key Highlights

• Investment Needed: The $351 million investment will help overcome high interest rates and rising construction costs that have stalled many affordable housing projects.
• New Housing Strategy: The plan includes pre-development loans, waivers of building permit and planning application fees, and property tax exemptions to encourage the development of purpose-built rental units.
• Support for Builders: Mayor Olivia Chow is calling on faith groups, community organizations, and other builders to apply for funding, offering pre-development funding and planning assistance.

The Importance of Affordable Housing

According to Abi Bond, executive director of the Housing Secretariat, this investment is crucial for constructing and completing real homes. The focus is on creating housing for people struggling to stay in their homes, those in low-income jobs, and young, middle-class families just starting out.

Incentives and Benefits

The proposed incentives aim to create tangible progress toward the council’s goal of adding 65,000 rent-controlled units in Toronto. Eligible projects could receive up to $260,000 per affordable rental home.

Current Rental Market Challenges

Most new rental supply in Toronto over the past decade has been condominiums, which are generally more expensive and lack security of tenure for tenants. These units are often out of reach for low-income and marginalized residents.

Proposed Rent-Controlled Units

The new plan defines rent-controlled homes as those with monthly rents at or below 150% of the average market rent. For example, under this program, affordable rents would be:

• $1,088 for a studio
• $1,378 for a one-bedroom unit
• $1,992 for a two-bedroom unit
• $2,190 for a three-bedroom unit

Long-Term Affordability

Rents under this program will be controlled, with increases capped at the provincial rent increase guideline plus 2% annually for at least 40 years. This ensures ongoing affordability and covers operation and maintenance costs.

Next Steps

The report will be presented to the planning and housing committee next week and, if approved, will move to the council on June 26. The planning and housing committee chair, Gord Perks, is optimistic about the plan’s potential to improve affordability and livability in Toronto.

Conclusion

Will this ambitious plan receive the support it needs from the Toronto council? Can the proposed $351 million investment truly unlock the construction of 6,000 affordable rental units and transform the city’s housing landscape? The stakes are high, and the city’s residents are watching closely. The upcoming council vote will be a decisive moment in determining the future of affordable housing in Toronto. What do you think – will this plan go through and make a real difference?

Source: Staff urge Toronto council to pump millions into new rentals (thestar.com)