Toronto will receive $471 million in federal cash as part of a new housing deal

Prime Minister Justin Trudeau's office announced Thursday that Toronto will receive $471 million in federal funding to build new homes.

The money will come from Ottawa's Housing Acceleration Fund and should help Toronto build about 12,000 new units over three years, Trudeau said in an announcement in Toronto. It should help facilitate more than 53,000 units over the next decade.

Trudeau said Toronto is making development easier by relaxing zoning requirements and modernizing regulations. He said the city will expand affordable rental programs and build more homes near transit.

“(Toronto) is a great city, and if we want to keep it great, we need to make housing affordable. People who come here need to be able to build lives and build families,” Trudeau said.

Trudeau and federal Housing Minister Sean Fraser joined Toronto Mayor Olivia Chow for the announcement.

Fraser said too many people in Toronto commute long hours or find work in places where they can't afford to live. Along with density close to transit, he said the agreement would result in a “tremendous” increase in density close to post-secondary education. institutions.

“It allows people to live where services and economic opportunities exist, in communities that have the infrastructure to support them,” Fraser said.

Chow welcomed Thursday's announcement.

“Today (December 21) is the winter solstice, it's a time when we leave the darkness behind. It's a new beginning, a time of transformation. And we're gathered here to herald a hopeful new beginning,” Chow said.

Mayor Olivia Chow said Thursday's announcement marks a new beginning for the city. (Evan Mitsui/CBC)

According to a press release issued by Trudeau's office, the deal will also take steps to address Toronto's so-called repairs in addition to boosting housing supply. The release does not go into detail about how this is done.

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The Housing Acceleration Fund aims to build 380,000 new homes over the next decade. Ontario alone will need 1.84 million homes by 2030, according to a Mortgage and Housing Canada report released in September.

Asked if today's announcement of more than 53,000 homes was just a drop in the bucket, Trudeau said the fund is not just building subdivisions, but changing rules that would allow more density to be created without direct investment from the federal government.

The announcement comes after the city was asked to change the application

The announcement comes a month after Fraser said the city needed to change its building policy if it wanted to achieve its share of the housing stock. In council last week, city councilors approved changes that would improve Toronto's bid for Ottawa.

Some of the changes voted for include the city's desire to allow four-story residential developments, which means the owner has the right to freely develop the property, and consideration of allowing up to six units with the same permits. The city also committed to placing accessible facilities near public transportation.

The $4 billion Housing Acceleration Fund is a federal initiative that encourages municipalities to make changes to laws and regulations that encourage housing construction in exchange for more money.

Some of the changes Ottawa has pushed for include faster zoning and permits.

Including today's announcement, Ottawa has entered into agreements with 16 municipalities across the country.

The city application included 8 initiatives

Homes built through the deal include new rental homes and market-rate rental homes located in mixed-income, mixed-use and transit-oriented communities, according to a city news release accompanying the announcement.

When applying for federal funds, the city outlined eight initiatives it would use to rapidly increase affordable housing in Toronto:

• Transforming the processes and technology used to accelerate review development applications.

• Revitalizing public housing in Toronto, creating new rental homes.

• Protecting rental properties and supporting landlords.

• Converting urban land into new rental homes.

• Transforming the city's waterfront to support social, economic and cultural growth.

• New rental housing incentive program.

• Expansion of the missing middle dwelling, which refers to low-rise dwellings that are not single-family homes.

• Simplifying the planning approval process for rent increases in residential areas.