Toronto Builds – A Policy Framework To Build More Affordable Rental Homes On Public Land
Date of Document: May 1, 2025
To: Planning and Housing Committee
From: Deputy City Manager, Development and Growth Services
Introduction: Tackling Toronto’s Housing Crisis Head-On
Toronto is in the grip of an escalating housing affordability crisis one that affects not only low-income and vulnerable residents, including those experiencing homelessness, but also key workers, middle-income earners, and families struggling to remain in the city. In response, the City of Toronto has taken significant action in recent years. Notably, City Council approved a whole-of-government response through Item EX9.3 Advancing a Generational Transformation of Toronto's Housing System and increased the HousingTO 2020-2030 Action Plan target to approve 65,000 rent-controlled homes by 2030. This target includes 6,500 rent-geared-to-income (RGI) units, 41,000 affordable rental homes, and 17,500 rent-controlled market homes.
The new report, Toronto Builds - A Policy Framework to Build More Affordable Rental Homes on Public Land, recognizes a fundamental truth: achieving these ambitious targets requires the effective mobilization of public land. Through EX9.3, Council identified nearly 100 City-owned or City-agency-owned sites ready for housing development or subject to due diligence. However, historically, the development of City land for affordable housing has been fragmented, with programs like Housing Now, the Modular Housing Initiative, ModernTO, and TCHC Revitalizations each operating under different eligibility criteria and requirements. This inconsistency has created confusion and delays.
The Toronto Builds Policy Framework solves this problem by establishing a harmonized, consistent set of policies to guide the development of rental homes within mixed-income communities on public land. It applies across City Divisions, CreateTO, and the Toronto Community Housing Corporation (TCHC), whether working with private, non-profit, or Indigenous partners.
Core Objectives of the Toronto Builds Policy Framework
The Framework is built on four key pillars:
Harmonization: Creating a single, unified policy framework for all housing on City land, replacing the patchwork of previous programs.
Flexibility: Responding to challenging market conditions that vary across Toronto and impact the financial viability of affordable housing developments.
Mixed-Income Communities: Ensuring developments prioritize a range of rental homes RGI, affordable, rent-controlled, and market rental, while building complete, inclusive neighborhoods.
Intergovernmental Partnership: Laying the foundation for a tri-government (Canada-Ontario-Toronto) Builds program, calling on federal and provincial partners to join the City in mobilizing public land for housing.
The framework applies to all housing projects on City land listed in Attachment 1 (the “Toronto Builds Portfolio”), as well as future sites. It will be applied on a go-forward basis, respecting existing agreements where development partners have already been selected or planning approvals completed.
The 12 Key Policy Areas of Toronto Builds
The Toronto Builds Policy Framework establishes requirements and targets across 12 critical areas. These balance ambitious city-building goals with the practical need for financial viability.
Mixed-Income Communities (Requirement): All developments must support mixed-income, complete communities with diverse housing types affordable to a range of residents, from RGI to market rental. For large revitalizations (e.g., TCHC), this may also include affordable or market ownership homes to support long-term financial sustainability.
Affordable Rental Housing (Target): A minimum of 20% of all new rental homes on City land must be affordable rental homes. At least 50% of these affordable units must be two- or three-bedroom units suitable for families. Rents are set based on Average Market Rent (AMR): affordable rents at or below 80% of AMR, with at least 40% of affordable units at or below 60% of AMR. RGI units are provided as needed based onoperating agreements.
Indigenous Housing (Requirement & Target): The City commits to engaging with Indigenous housing providers. At least 2% of affordable rental homes in the Toronto Builds Portfolio will be transferred to or developed in partnership with Indigenous non-profit housing providers. The City will also explore conveying City-owned land at nominal value to Indigenous organizations, advancing truth and reconciliation.
Rent Control (Requirement): All rental homes affordable, RGI, and market-built on City land must be rent-controlled under the Residential Tenancies Act. This is a non-negotiable protection for tenants.
Land Tenure (Requirement): All Toronto Builds projects will be developed on leased City land, not sold. Leases typically range from 50 to 99 years. Non-profit operators may receive nominal or below-market leases; for-profit partners will pay market value leases, with the value of affordable housing benefits considered as compensation.
Financial Viability and Incentives (Target): The framework incorporates the City’s Rental Housing Supply Program, offering incentives like indefinite deferrals of development charges, exemptions from parkland dedication and community benefits charges, and fee waivers for planning applications and building permits. These tools are essential to “unstick” projects in a high-interest, high-construction-cost environment.
Unit Mix (Target): To meet family needs, projects target 10% three-bedroom units and 35% two-bedroom units. This target is flexible to maintain project viability.
Affordability Period (Requirement): A minimum 40-year affordability period for all affordable and RGI homes, with a target of 99 years.
Accessibility (Requirement & Target): 20% of new affordable rental homes and 15% of market rental homes must be fully accessible (barrier-free per Ontario Building Code). All affordable homes should aim for universal design features to support aging in place.
Sustainability (Requirement): To meet TransformTO Net Zero Strategy (2040 community-wide), all projects without zoning approval must meet Toronto Green Standard (TGS) Version 4, Tier 2 (or higher), with low-carbon, fossil-fuel-free HVAC and all-electric appliances.
Access to Units (Requirement): All affordable rental units whether operated by non-profit or for-profit, must be accessed through the City’s centralized affordable housing access system, ensuring fair and equitable distribution.
Community Benefits (Target): Partner selection processes will incorporate measurable community benefits, including social procurement, apprenticeships, and hiring opportunities for equity-deserving communities.
Three Immediate Toronto Builds Projects in 2025
The report doesn’t just propose a framework it puts it into action. City Council is asked to approve the release of three development sites through a market offering process in 2025, creating an estimated 1,523 new rental homes, including 503 affordable rental homes.
970 Kipling Ave. (Bloor-Kipling Block 5) – Previously approved incentives (~$32.2 million) will be carried over.
158 Borough Dr. – Also already has approved financial supports.
931 Yonge St. – New project requiring planning and building permit fee waivers (estimated $236,494).
For these projects, the City will use a 99-year lease model. For-profit partners will pay market value leases (with affordable housing benefits counted as compensation), while non-profit partners may receive nominal or below-market leases. The market offering process will be led by CreateTO, in consultation with the Housing Secretariat and the new Housing Development Office.
A key innovative feature: proponents may request an indefinite deferral of development charges for purpose-built rental units. This deferral is contingent on demonstrating how it supports greater affordable housing outcomes or rent control. Staff will report back to Council on the outcome.
Intergovernmental Ask: Canada-Ontario-Toronto (COT) Builds Program
The Toronto Builds Policy Framework is explicitly designed as a foundation for a tri-government partnership. The report requests that both the federal and provincial governments join the City in launching a COT Builds program, modeled on the successful BC Builds program in British Columbia.
Specific asks include:
From the Government of Canada: A portfolio-based allocation of $150 million in direct funding and $5 billion in low-cost financing (e.g., through CMHC) for 26 rental housing projects (20 on City land, 4 on non-profit land), starting construction within two years. Also, alignment of federal land initiatives (like Build Canada Homes) with Toronto Builds.
From the Government of Ontario: Alignment of provincial land initiatives, plus sufficient funding to enable the City to indefinitely defer development charges on purpose-built rentals under the Rental Housing Supply Program. This would unlock the remaining $4.75 billion out of $7.3 billion in federal financing committed to Toronto, conditional on provincial support.
The report notes that a recent agreement-in-principle between the City and federal government for $2.55 billion in low-cost financing for seven projects is an important first step.
Groundbreaking Partnership with the Toronto District School Board (TDSB)
One of the most innovative elements of the report is a proposed non-binding Memorandum of Understanding (MOU) between the City and the Toronto District School Board (TDSB), represented by its agent, the Toronto Lands Corporation (TLC). This MOU recognizes that school properties are underutilized public assets that can help solve the housing crisis while also funding school modernization.
Key terms of the MOU:
Eight initial TDSB properties identified, with potential for approximately 10,500 new rental homes.
Affordable housing target: At least 20% (~2,100 units) affordable rental homes, with an affordability period of 40 to 99 years.
City incentives: Exemption from development charges, parkland dedication, community benefits charges, planning application and building permit fees for those 2,100 affordable units. Estimated total value: over $201 million (forgone revenue).
Expedited approvals: Priority processing for TDSB-led redevelopment applications.
Shared public spaces: Coordinated design and public access for schoolyards, parks, and community amenities.
This MOU aligns TDSB’s Multi-Year Strategic Plan with the City’s HousingTO Plan and Housing Action Plan, creating a replicable model for other school boards and public landowners.
Financial Impact and Affordability
The report is transparent about costs and foregone revenues:
TDSB MOU incentives: Estimated $201.4 million (development charges, parkland fees, permit fees).
931 Yonge St. fees: $236,494 (planning and building permits).
General policy direction: The City will amend Municipal Code Chapter 415 to exempt all residential components of Toronto Builds projects from parkland dedication and community benefits charges. Fees for tieback encumbrances, crane swing agreements, and temporary street occupation will be waived for non-profit-led, City-initiated rezoning projects.
Crucially, these are not direct cash outlays but foregone revenue the cost of using public land and fee waivers to achieve deep affordability. Land value contribution will be assessed case-by-case in each business case.
The report also notes that 48% of Toronto households are renters, and 40% of them live in unaffordable housing. Average asking rent for a two-bedroom unit in 2024 was $2,744/month, out of reach for a median two-person renter household earning ~$87,900. The Toronto Builds framework directly targets this gap.
Governance and Delivery Next Steps
By Q3 2025, the Deputy City Manager, Development and Growth Services will report back with a detailed program delivery and governance framework, including:
Alignment of mandates, roles, and responsibilities across City Divisions, CreateTO, and TCHC.
Updates on the creation of the new Housing Development Office (a public developer function).
A Master Services Agreement between the City and TCHC, and between the City and CreateTO.
The report also delegates authority to add or remove sites from the Toronto Builds Portfolio based on due diligence, ensuring the program remains dynamic and responsive.
Indigenous and Community Housing Sector Inclusion
The framework explicitly prioritizes Indigenous and community housing providers. The Housing Secretariat is directed to engage with partners like Miziwe Biik Development Corporation, the Toronto Alliance to End Homelessness, the Community Transformation Centre, and the Cooperative Housing Federation of Toronto to build sector capacity and facilitate their inclusion in Toronto Builds Projects. Conveyance of City land at nominal value to Indigenous non-profits is under active consideration.
Conclusion: A Generational Shift in How Toronto Uses Public Land
The Toronto Builds Policy Framework is not just another housing program it is a fundamental realignment of how the City of Toronto leverages its most valuable asset: public land. By replacing a patchwork of inconsistent programs with a single, flexible, and equity-driven framework, the City is positioning itself to deliver thousands of new rent-controlled, affordable, and supportive homes over the coming decade.
Success, however, depends on partnership. The report is a clear call to action to the federal and provincial governments: join Toronto in a COT Builds program. It also demonstrates the power of cross-sector collaboration, as seen in the MOU with the TDSB.
For housing advocates, developers, non-profits, and residents, the message is clear: Toronto is ready to build. The land is identified. The policies are harmonized. The incentives are on the table. Now, it’s time to move from framework to foundation and from foundation to homes.
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