Toronto: Residents of North Scarborough now have access to more stable rental housing options, thanks to a new investment made by the Government of Canada.
Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC), alongside Shaun Chen, Member of Parliament for Scarborough North, have announced a $42 million lowcost loan that helped construct the new residential building located at 23 Thunder Grove Road in Scarborough North.
Ridgeford Place, by the Ridgeford Charitable Foundation, is a 12-storey residential building that is providing Scarborough North with 186 new units of much needed rental housing close to public transit, schools and services for families.
The project received funding through CMHC’s Rental Construction Financing initiative (RCFi), a National Housing Strategy program that supports rental housing construction projects to encourage a stable supply of rental housing for middle-class families in expensive housing markets.
Hussen said: “Every Canadian deserves a safe and affordable place to call home. That’s why our government is taking action to increase the supply of affordable rental housing through projects like the one we are announcing today in Toronto. Ridgeford Place will provide families better access to jobs, services and the amenities they need.”
Shaun Chen added: “It has become clear, in the past year, that nothing is more important than a home. Hard-working families in Scarborough deserve a safe and affordable place to call home, where they can thrive and spend time with their loved ones. The Government of Canada’s involvement in this project demonstrates our ongoing commitment to that belief. Together, we are investing in a generation of new permanent housing that we can all be proud of.”
Toronto Mayor John Tory said: “Increasing the supply of affordable rental housing has been a top priority for me as Mayor and we have set ambitious goals for our city in our housing plan. This new project in partnership with the federal government allows us to continue moving forward in meeting these goals and ensuring that every resident in our city has a roof over their head. We know as a city, we cannot do this alone which is why these partnerships with the federal government are so important.
For our part, as part of the Open Door program, the City of Toronto is contributing $6.9 million in incentives to help ensure that all 186 rental homes at 23 Thunder Grove in Scarborough North are affordable and can remain affordable for a minimum of 25 years. The City is also providing funding over the 25-year term to deepen affordability so that 47 low-income households will pay no more than 30 per cent of their income on rent. I want to thank the Federal government for being great partners and for helping us move forward with getting affordable housing built. Partnerships like this one, where governments and the non-profit sector work together allow us to deliver affordable housing to residents in our city.”
The Project is designed to achieve energy efficiency savings of 16.6% and greenhouse gas emission reductions of 26.4%, relative to the requirements of the 2015 National Energy Code for Buildings and 27 units will be accessible. Through the RCFi, Ottawa is encouraging the construction of more than 71,000 new rental housing units.
Launched in April 2017, the RCFi has generated significant interest in the industry, which has led to an expansion of the program. Through Budget 2019, the Government of Canada increased the total amount available in loans to $13.75 billion. Given the high demand for the program, the Government again expanded the RCFi in the 2020 Fall Economic Statement by adding $12 billion over 7 years, starting in 2021 – 22. The program totals $25.75 billion in low-cost loans.