The Ontario government is investing $300 million through the Building Ontario Fund in partnership with High Art Capital, to increase access to affordable housing in the Greater Toronto Area (GTA) by supporting the conversion of approximately 2,200 condominium units into long-term rental housing. Approximately 550 of these homes will have rents set at 25 per cent below market rates or at no more than 30 per cent of the median household income in the GTA, whichever is lower. Most of the $300 million investment is structured as a repayable loan to the Building Ontario Fund, in addition to a small equity stake that will support the Building Ontario Fund's role in project governance.
"To support our plan to protect Ontario, our government is using innovative financing tools to unlock housing that meets the needs of families today and for years to come," said Peter Bethlenfalvy, Minister of Finance. "Through the Building Ontario Fund, we are mobilizing private capital, reducing risk and accelerating the delivery of affordable rental housing that would not otherwise be available."
This initiative is the first-of-its-kind at this scale in the GTA. It will help reduce housing pressure and seize on a unique opportunity to rapidly convert unsold condominium units into long-term rental housing. Without the financial backing provided by this repayable loan through the Building Ontario Fund, many of these units would otherwise remain unsold or unoccupied. Instead, this project is intended to ensure the designated units remain affordable for their lifetime, while increasing the overall supply of rental housing, giving renters more choice and helping more people live closer to where they work.
In addition to the investment through the Building Ontario Fund, the fund expects to raise approximately $733 million in additional loans from other investors. The fund expects to maintain ownership of the units for at least five years. After that period, the fund plans to sell the units, at which point the Building Ontario Fund's loan would be repaid.
"An integral step towards protecting Ontario's economy is ensuring everyone in our province has a safe and affordable place to live," said Rob Flack, Minister of Municipal Affairs and Housing. "This partnership reflects our government's commitment to finding collaborative, practical housing solutions that meet the needs of Ontarians, so more people can thrive in their communities."
As the province responds to U.S. tariffs and ongoing economic uncertainty, the government is protecting Ontario by building the most competitive, resilient and self-reliant economy in the G7. The Building Ontario Fund is a key part of that plan, by accelerating investment in high-impact, revenue-generating infrastructure projects across six priority areas: affordable housing, energy, transportation, long-term care, municipal and community infrastructure, and critical minerals.
Quick Facts
- The Building Ontario Fund (BOF) works with trusted institutional investors and partners to close financing gaps and enable priority infrastructure projects to move from vision to reality and drive long-term economic growth.
- Long-term affordability of approximately 550 units will be protected through legal agreements and registrations on the title of the condominiums purchased as part of this investment, with the intention that these units remain affordable for a lifetime.
- High Art Capital has launched an open and competitive market call inviting vendors to express interest in this project. Submissions are being accepted through High Art's website.
Quotes
"This partnership demonstrates the power of collaboration between the public and private sectors to address housing challenges. By working together with High Art Capital and our service providers, we're creating rental housing options in the near-term, and securing affordable homes for generations to come. This project was made possible by BOF's participation, requiring no development charge, tax waivers, or direct subsidies to realize its affordability objectives. This type of innovative approach, a first of its kind at this scale, is exactly why BOF was created."
- Michael Fedchyshyn, CEO of Building Ontario Fund
"Today's announcement demonstrates what is possible when public and private capital work together with discipline and shared purpose. At a time when the GTA is facing a tight rental market and strong demand, this partnership converts vacant condominiums into approximately 2,200 professionally managed rental homes, including 550 units offered at affordable rents intended to be secured in perpetuity for working families."
- Ryan Roebuck, Co-Founder and Managing Partner, High Art Capital
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