Toronto will receive nearly $500 million from the federal government to meet growing demand for affordable housing and fast-track the construction of new homes.
On Thursday, Prime Minister Justin Trudeau, along with Toronto Mayor Olivia Chow, announced that Ottawa will provide the city $471 million in funding through the Housing Accelerator Fund (HAF).
As a result, this will create about 11,780 new homes in the city over the next three years, in addition to 53,000 homes over the next decade.
”We’re facing a shortage of housing right now. Whether you own or rent, the prices of homes have become way too high. That’s why we created the Housing Accelerator Fund (HAF), to build more homes of all types, faster,” Trudeau said in a press conference Thursday morning.
“Through this funding, Toronto will make it easier to get projects rolling by simplifying rezoning requirements and modernizing regulations. It’ll also update old zoning rules, it’ll expand existing affordable rental programs and it’ll build more homes near transit,” he added.
Meanwhile, here’s what Chow had to say about the new deal.
“We will make it easier and faster to get approvals. We will allow for more density and more types of housing. Today’s announcement is a significant step,” she said.
HAF is a $4-billion federal funding program that aims to expedite housing development by asking for innovative action plans from local governments. If approved, HAF will provide upfront funding to ensure the timely building of new homes, as well as additional funds upon delivering results.
“As part of the agreement, Toronto will work to streamline zoning bylaw approvals, expand affordable rental programs, cut red tape, and unlock non-market housing. It will also take action to address “renovictions”, whereby a landlord can evict a tenant for the sole purpose of undertaking renovations or repairs on a home,” the government said in a press release.
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The announcement comes during a time when the country is grappling with elevated rental prices.
According to a report by Rentals.ca and Urbanation, the average rent for all residential property types in Canada was $2,174 in November. Meanwhile in Toronto, the average rent was a whopping $2,913 last month, a slight 2.4 per cent decrease from a year ago. Compared to last year, average rents across the country have increased a staggering 8.4 per cent.
