As Canada’s housing market has pumped the brakes, squealing into stagnation amid high building costs and the risks of trade war, the federal government says it will offer $2.55 billion in low-cost loans for rental housing in É«É«À²Â — as a tradeoff for city hall offering some relief on development fees and taxes.
The loan money, already eyed for seven specific rental developments citywide — amounting to an estimated 4,831 units including 1,075 expected to be rented at lower costs — was unveiled Wednesday morning at an event downtown. It comes after months of negotiations between governments, during which time the city launched a program that offers fee waivers and a 15 per cent reduction in property taxes to rental housing builders, so long as a fifth of their new units are rented out at more moderate prices.
The prioritized developments include buildings in É«É«À²â€™s emerging Quayside neighbourhood, as well as several other city-supported housing projects, such as the developments within its persistently stalled Housing Now building program.
The federal government simultaneously announced details of its previously inked deal with É«É«À² to better address soaring outdoor homelessness and tent encampments through additional resources.
A total of $25.8 million in federal money will flow to É«É«À² through that deal, to fund efforts such as partnerships with health-care and addictions service providers — to offer more aid to individuals with complex needs — and the hiring of 20 additional outreach workers for the city’s Streets to É«É«À²s team.
These details were unveiled nearly two months after the federal government first with É«É«À² as well as eight other municipalities. Both governments, at the time, refused to say how much money was agreed on, or to provide specifics about how it would be used — despite
As É«É«À² has faced a rapidly worsening homelessness crisis, with 11,780 people known to be homeless in the city as of January — nearly 800 more than the same time last year — federal Housing Minister Nathaniel Erskine-Smith told the Star the delay didn’t impact the rollout of the agreed-upon funds.
A large homeless encampment at Dufferin Grove Park in É«É«À² in December.
Andrew Francis Wallace É«É«À² SIn an interview ahead of the announcement, Erskine-Smith framed É«É«À² as the epicentre of Ontario’s much wider housing woes, and the key to turning things around. “When you look at the housing challenge in Ontario, it in many ways starts from É«É«À²,” Erskine-Smith said. “The exodus of folks from É«É«À²Â — because they can no longer afford to live in É«É«À²Â — starts to impact other communities given the musical chairs of housing unaffordability.”
Erskine-Smith, who became housing minister in December, rebuffed the idea that heavy spending was motivated by an expected election ahead. “This isn’t new spending in the sense of ‘we’re on the eve of an election, and let’s come up with some new promises that are back-of-the-napkin promises, and have not been costed, and are more political than they are policy-driven,’” he said.
He suggested the spending was increasingly needed in an unpredictable time, as Canada and the U.S. are locked in a trade dispute — one he fears will result in a pullback from housing investments. “This announcement is all the more important because we see such uncertainty,” Erskine-Smith said.
At Wednesday’s event, however, Erskine-Smith pointed bluntly to the national vote ahead, framing it as an election with consequences for housing spending.Â
- Victoria Gibson
Mayor Olivia Chow, also speaking with the Star ahead of Wednesday’s announcement, says the ongoing federal negotiations were top of mind when city hall unveiled its rental development incentive program in the fall. Just last week, a city staff report recommended going further and allowing some condo builders to defer paying their city development charges for up to four years.
They’re moves she sees as essential to enliven É«É«À²’s housing pipeline.
“We are stuck because of interest rates, because housing starts are down. The market positions are very challenging. There is no time to waste,” Chow said.
While seven projects have been identified for potential low-cost loan support, those deals are not yet finalized, with federal officials noting the projects will still need to meet certain conditions. Final decisions will be made by the Canada Mortgage and Housing Corp., the country’s national housing agency.Â
As development stalls, É«É«À² has faced a parallel crisis of homelessness, which has rapidly escalated and become more visible in recent years — with hundreds of tents erected in parks, ravines, and tucked-away corners like beneath the Gardiner Expressway. Shelters regularly face more demand than they can handle, with an average of 89 people each day in January turned away after calling shelter intake, and those who do secure a shelter bed often getting stuck there, as affordable housing to move to is in short supply.
Chow sees the heavy stakes at play, pointing to strain on public systems like hospital emergency rooms as well as showing a dramatic reduction in life expectancy when homeless. “It’s brutal, living out on the street,” Chow said. “And if this means that some of the people can find shelter, find a way to get back on their feet, they will live longer and better lives.”
With files from Ben Spurr
To join the conversation set a first and last name in your user profile.
Sign in or register for free to join the Conversation