The province of Ontario recently announced development charge rebates in an effort to stimulate the creation of more affordable rental housing.
The City of Toronto will receive $60 million to encourage the development of complete communities that are accessible, walkable, and near transit and other essential services. The rebates are available for developers looking to build high-rise, mid-rise, and townhome rentals.
The province also announced the developers they selected to develop surplus provincial land in Toronto into mixed-income communities for around 2,150 families.
Dream, Tricon, and Kilmer Group will developer two vacant lots in the West Don Lands area into mixed-income rentals for nearly 1,450 residents. The community will also feature retail and a community hub.
Canadian Real Estate Investment Trust and Greenwin Inc. will develop a site between Grenville and Grosvenor into a family-friendly mixed-income community with 700 rental units, retail, and a daycare.
30% of all the rental units being developed at these two sites will be dedicated affordable housing. According to the province, of all housing built in the last 20 years, only 6% has been rental housing.
“To keep Toronto affordable for people of all ages and income levels, we need all governments working together to take real action on affordable housing,” says Mayor of Toronto, John Tory. “By answering our call to make surplus provincial lands available for the development of new affordable housing, the Province is demonstrating its commitment to cooperation and helping the City of Toronto address our residents’ housing needs.”
Development charges significantly impact the cost to build, and this cost gets passed onto the tenant (or buyer in the new home market). The fees collected by the municipality are supposed to go towards improving and building new infrastructure to accommodate the growing population.
“It is important that people in Ontario have an affordable place to call home, regardless of their housing needs or where they live in Toronto,” says Peter Milczyn, Minister of Housing and Minister Responsible for the Poverty Reduction Strategy. “More rental housing means more options when looking for a home, all while creating vibrant communities.”
We’re all about the new home market, but we understand that in order to have an overall healthy housing market, there needs to be a balance of all forms of housing so a wider range of the population is accommodated. We hope these rebates encourage developers to launch some new rental projects!