Feds invest $200M for affordable rentals in former Honest Ed's location
The Government of Canada and the City of Toronto have announced a $200 million investment to help the city’s significant shortage of rental housing.
According to the Canada Mortgage and Housing Corporation (CMHC), the federal government is financing the construction of six rental residential buildings with 916 rental units at Mirvish Village.
The development will be a mixed-use, 100% rental community at the site of the historic Honest Ed’s department store, at the corner of Bloor Street West and Bathurst Street.
“This funding for the Mirvish Village will help us preserve a historic and vibrant community in our city. Honest Ed’s was a beloved part of our city and by creating affordable housing on this vacant land we are able to address the housing challenges our city faces,” said Mayor John Tory.
“This $200 million commitment demonstrates the importance of all levels of government working together to address issues that impact Torontonians.”
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The CMHC said that this initiative “supports rental housing construction projects to assist in providing a stable supply of rental housing for middle-class families living in expensive housing markets.”
Mirvish Village will include 366 units that will provide rents at or below 30% of median household income. Of the 366 affordable units, 100 will be secured at 80% of Average Market Rent for the City of Toronto, as per CMHC.
“These affordable units will be scattered throughout the project and will be of the same quality and design as market rent units,” said CMHC.
The news comes one day after the CMHC released its Rental Market Survey (RMS) which stated that “low vacancy rates in major centres underscore the need for increased rental supply to ensure access to affordable housing.”
While rental accommodations have been needed, rental market conditions were “tight” throughout last year, which resulted in landlords charging new tenants higher rents.