The Housing Now Initiative is a signature affordable housing program in Toronto and across Canada. It is also a key housing supply program to support the City's HousingTO 2020-2030 Action Plan, Housing Action Plan 2022-2026, and City of Toronto’s Generational Transformation of Toronto’s Housing System to Urgently Build More Affordable Homes report. Through the Housing Now Initiative, City-owned lands are leveraged for the purpose of creating new mixed-use, mixed-income communities with maximized affordable housing outcomes. To-date, the City has identified 22 sites and committed substantial land value, capital funding and financial incentives to the program, making it one of the most significant municipal financial investments in housing underway today. There are also 4 additional pipeline sites that have been identified for pr-development due-diligence. The site at 777 Victoria Park Avenue was among the original sites included in the program. Like many of the Housing Now Sites, 777 Victoria Park Avenue experienced project slow downs resulting from the COVID-19 pandemic, unprecedented escalation in construction costs, changes to federal and provincial housing policy, and steep increases in interest rates. As an example, construction costs have increased by over 63% (more than 20% year-over-year) since 2019, making Toronto the most expensive city in Canada to build high-rise residential. Recently, however, shifts in Toronto’s residential market, stable interest rates, and the introduction of new inter-governmental program and policy changes have resulted in a window of opportunity for the delivery of purpose built and affordable rental homes. The 777 Victoria Park site will include a range of rental homes, retail and community space at grade and a new purpose-built childcare facility. Importantly the land will remain in public ownership in perpetuity. Subject to Committee of Adjustment approval, the site will deliver 705 rental homes including: 256 new affordable rental homes (rents at average of 80% City of Toronto’s average market rent) 449 new rent-controlled market homes (with annual rent increases limited at Provincial guideline+2%). Similar to the Housing Now Initiative - 2023 Progress Update (April 13, 2023), this report makes a number of recommendations to City Council to help 'unstick' the Housing Now project at 777 Victoria Park Avenue to quickly realize a significant amount of new affordable rental homes.
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