Toronto Approves $245 Million to Support Construction of Over 10,800 New Homes

On July 24, 2025, Toronto City Council approved more than $245 million in capital grants, loans, and financial incentives to support the development of approximately 10,815 new homes across 39 projects in 13 city wards. The funding is part of a multi-pronged effort to address housing affordability and accelerate new construction, particularly of purpose-built rental and deeply affordable housing.

The approved measures include nearly $86 million in capital grants for 14 projects that will deliver over 3,200 new rental homes, including 963 affordable, supportive, and rent-geared-to-income (RGI) units. An additional $17 million in interest-free loans will assist 13 community-led projects with early-stage planning and site preparation. More than 1,000 homes will also receive property tax exemptions to help ensure long-term affordability.

These initiatives target a diverse range of housing types across the spectrum, including rent-controlled and community housing developments. They also complement more than 230 housing projects currently in Toronto’s development pipeline, 43 of which are already under construction. When completed, those projects are expected to deliver over 9,500 new homes. Approximately 70% of these are to be affordable or rent-controlled rentals.

City officials emphasized that while Toronto continues to take bold steps to unlock housing supply, further progress depends on stronger provincial and federal commitments. In addition to its own funding, the City is requesting $596 million from the Province of Ontario to expand the Purpose-Built Rental Housing Incentives Program. It is also calling on the federal government to increase contributions to key Canada Mortgage and Housing Corporation (CMHC) programs to help move approved projects into construction.

To further accelerate housing delivery, Toronto is also expanding its use of City-owned land for development. Dozens of new sites have been identified for future housing projects, and partnerships with CreateTO and Toronto Community Housing Corporation (TCHC) are being leveraged to deliver new supply more efficiently.

Policy Foundations Supporting the Announcement

Two recent City reports were key in providing the underlying framework for many of the tools now being used to deliver housing more quickly and affordably.

From Concept to Construction: Creating More Homes Across the Housing Continuum, released in June 2025, outlined how Toronto is deploying direct financial support through its Rental Housing Supply Program (RHSP). This includes capital grants, fee exemptions, and interest-free loans to help non-profit and community-based developers build affordable and rent-controlled housing. The report also details how the City is coordinating with federal and provincial programs, such as the Housing Accelerator Fund and the Building Faster Fund, and launching pilot projects to explore mid-density housing on City-owned sites.

Building Faster: Streamlining Housing Delivery and Strengthening the City’s Development Capacity, released in July 2025, focused on how the City is reorganizing itself to move housing projects forward. It establishes the Housing Development Office (HDO), which will provide end-to-end oversight and coordination of City-led and City-supported housing projects, working with CreateTO and TCHC to ensure alignment with the Toronto Builds Policy Framework..

Together, these reports form the operational and financial backbone behind many of the initiatives supported in the July 24 decision, integrating policy, funding, and land use into a more coordinated and scalable approach to housing delivery.

Multi-Layered Strategy 

Toronto’s housing response is not restricted to a single policy phase. The approval represents an escalation of financial, procedural, and administrative commitments intended to accelerate housing delivery across a wide spectrum of affordability and tenure types. The City’s expanded focus on public land, streamlined governance, and multi-source financing reveals a shift toward system-wide coordination aimed at streamlining and speeding up processes.