Province Announces $125M Incentive For Rental And Affordable Housing
The Ontario government has set aside $125M over the next five years for development charges rebates aimed at encouraging the building of rental units and affordable housing.
The money, which will be managed by individual municipalities, is aimed at addressing the province’s woeful rental vacancy market. Rental housing represents only 6% of housing built in the province in the last 20 years, according to the Ministry of Housing.
The rebates could encourage developers to start purpose-built rental projects in municipalities with low vacancy rates and/or high tenant populations.
Rental vacancy rates in the GTA are at a 16-year low of 1.1%, down from 1.4% in 2016, according to a Canada Mortgage and Housing Corp. report.
The development rebates are one of 16 measures under Ontario's Fair Housing Plan, introduced in April. The controversial plan is aimed at bringing "stability to the real estate market by protecting renters and homeowners' investments, and increasing housing supply,” the release said.