Ontario to give $60M to build affordable units

Two buildings downtown will contain 30% rentals at less than market price

Toronto will receive nearly half of the $125 million in development charge rebates the province announced as part of its Fair Housing Policy last April.

Housing Minister Peter Milczyn, MPP for Etobicoke-Lakeshore, will announce Friday that the city will get $60 million over the next five years to encourage developers to build accessible rentals in walkable neighbourhoods near public transit.

He will also name the companies that have been selected to build 2,150 homes on two vacant provincial plots in the West Don Lands and near Grenville and Grosvenor Sts. downtown. Of those new homes, 30 per cent will be affordable units.

Dream, Tricon and Kilmer Group have been selected to build1,450 homes in six midrise buildings, along with a community hub and retail space in the West Don Lands.

Another 700 rental units, a daycare and retail space will be part of two highrises being developed by Canadian Real Estate Investment Trust (CREIT) and Greenwin Inc. at the downtown site.

Toronto’s share of the money will “help encourage the development of more rental housing and make it easier for newcomers, growing families, downsizing seniors and everyone looking for an apartment, to rent,” said a statement from Milczyn, who is also the Ontario minister responsible for poverty-reduction strategy.

Occupancy dates for the new buildings were not yet available.

The affordable units in the provincial land developments will include a range of rent categories.

Half of the 30 per cent of the new homes that are affordable units will be between 90- and 100 per cent of average market rent; 40 per cent will be priced between 70- and 80 per cent per cent of average market rent, and 10 per cent of the homes will be at 40 per cent of market rent. Average market rent is calculated on rent-controlled units.

Details of a third development on surplus government land in the Albion Rd. and Islington Ave. area are not part of Friday’s announcement.

The development-charge rebates are a separate program that will go to other projects. Toronto’s first instalment will flow this year with subsequent funds divided evenly across the five years.

Other municipalities will receive their rebates in varying increments.

Other Toronto-area communities in line for the development charge funds include Mississauga, which will get $13.4 million; Brampton with $5 million; Markham with $2.9 million and Richmond Hill, which has been allocated $2.3 million.

In Toronto, affordable housing units are those that rent for less than the average market price.

In central Toronto, the cost to rent a private one-bedroom apartment last year was $1,498 a month, according to Canada Mortgage and Housing Corporation. The average rent for a one-bedroom apartment in the Greater Toronto Area was $1,191.