$471 Million Government Grant Unleashes the Construction of 11,780 New Homes in Toronto
Recently, the Canadian Government allocated $471 million to the Housing Accelerator Fund (HAF) to create more affordable housing options for those less fortunate. It will reportedly result in constructing thousands of new houses in the City of Toronto.
Housing Program in Toronto
With a population of over three million people, Toronto is Canada's primary economic engine and is regarded as one of the world's most diverse and livable cities. Canada's investments, supported by its Government, residents, and businesses, propel the fourth-largest City in North America to the top of international rankings in fields including climate action, culture and innovation, film, finance, music, and technology.
In a joint announcement made on Thursday, December 21, Mayor Olivia Chow announced the distribution of $471 million in financing through the HAF, which will be utilized in building another 11,780 homes in Toronto, along with the currently anticipated number of homes that will be constructed throughout the next three years. As mentioned, increasing housing affordability for Toronto residents and accelerating the City of Toronto's efforts to reform its housing system for the betterment of future generations will reportedly be the objectives of the funding.
By giving this financial assistance, the City of Toronto can revitalize various neighborhoods while safeguarding existing rental properties and tenants. Additionally, the funds will assist in contributing to the enhancement of the City's capacity to assess and authorize new dwellings by continuing to streamline processes and introducing new technology.
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Severity of Homelessness in Toronto
As per Mayor Chow, the wait list for government-provided housing has over 85,000 families in the line, and an excessive number of young people are giving up the chance of finding a reasonably priced residence. She also emphasized the gravity of the problems that Toronto is currently facing, pointing out that approximately 10,000 people are struggling with homelessness.
Moreover, Mayor Chow explained that the Government is confirming its promise to meet the urgency of the nation's housing problem and the pace of the work that they are doing as part of the housing accelerator funding package. More specifically, the government reportedly promises to produce homes below and comparable to market prices.
Since June, Toronto has been attempting to secure a portion of this financing by highlighting the developments that have occurred in recent years to increase the number of housing alternatives available. These developments include the broad legality of multiplexes and rooming houses in Toronto and the launch of new choices for housing, such as garden suites and laneway homes.
On the other hand, when low vacancy rates have been observed, in addition to excessively high prices, many of these initiatives are aimed at boosting the availability of rental units. According to data provided by Rentals.ca as of November, the average listing price for a two-bedroom apartment in Toronto is $3,469, which is only within the financial means of a household with an annual income of at least $139,000.
Furthermore, to maintain the flow of funds for 2024, the City must demonstrate its progress on the agreed-upon targets. Thus, a post-secondary housing strategy will be delivered as one of the milestones. For the City to get the final payment, it will need to fulfill a target of 11,780 new dwellings with building licenses.
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