ONTARIO SUPPORTING CONSTRUCTION OF AFFORDABLE RENTAL UNITS IN SCARBOROUGH
$178 million investment will add 1,700 rental units in a new transit-connected
community
June 03, 2026
Ministry of FinanceSCARBOROUGH— The Ontario government is investing up to $178 million through the
Building Ontario Fund (BOF) to support the construction of approximately 1,700
new rental homes, including a target of 340 affordable units with below-market
rents, in Scarborough. Located on underused land near the Scarborough GO
Station, the project will form part of the new Scarborough Junction, a
transit-connected community expected to include 7,700 homes along with parks,
public spaces and community amenities, including convenient access to the
adjacent GO transit network.
“To support our plan to protect Ontario, our government is delivering long-term
affordable housing in a rapidly growing area of the Greater Toronto Area,” said
Peter Bethlenfalvy, Minister of Finance. “Through the Building Ontario Fund, we
are leveraging innovative financing tools to unlock rental housing supply that
otherwise would not be delivered and transforming underused land into a vibrant
transit-connected community.”
The equity investment in the Scarborough Junction project is being made through
Building Ontario Fund in a joint venture with Republic Developments and Harlo
Capital and is advancing a project that was previously stalled. Once BOF’s
investment has been repaid, it will reinvest into other projects that would not
otherwise get built across six priority areas including affordable housing,
energy, transportation, long-term care, municipal and community infrastructure,
and critical minerals.
The Greater Toronto Area is expected to add at least 1.7 million residents by
2051. At a time when housing supply is constrained, the government’s investment
will help increase rental availability and access to affordable homes, while
supporting good-paying jobs in construction. Project construction is expected to
begin in 2027, with first occupancies anticipated by 2030.
“We need to get more housing of all types built across the province, faster and
smarter,” said Rob Flack, Minister of Municipal Affairs and Housing. “That is
why we have introduced a series of measures to reduce the time and cost of
building, including the expansion of the HST rebate, the introduction of the
Development Charge Reduction Program, and transformational legislative reforms
through Bills 17, 60 and 98. Despite this work, we know our job isn’t done; and
this investment through the Building Ontario Fund is bringing housing online at
a time when it is much-needed.”
Today’s investment builds on the Ontario government’s work to spur housing
development and increase housing affordability through the Development Charge
Reduction Program (DCRP),which is part of the Canada-Ontario Partnership to Build that will deliver up to
$8.8 billion in federal and provincial funding over 10 years for
housing-enabling infrastructure projects.
QUICK FACTS
* The Building Ontario Fund 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.
* The project will deliver approximately 1,700 new rental homes, including a
minimum target of 20 per cent affordable units secured at below-market rents
for 40 years.
* These affordability objectives were agreed upon with intention to be eligible
for the City of Toronto affordable housing programs.
QUOTES
“Under the leadership of Premier Ford, our government is investing close to $70
billion in the largest transit expansion in North America and the largest subway
expansion in Canadian history. Building affordable housing near fast, reliable
transit is a key part of our plan to protect Ontario by building a stronger,
more resilient and self-reliant economy.”
– Prabmeet Sarkaria
Minister of Transportation
“Scarborough Junction shows the role Building Ontario Fund can play in getting
housing built when market conditions make it difficult to move projects forward.
Our investment helps unlock this transformative development, secure long-term
affordable homes, and deliver real, lasting benefits for the community.”
– Michael Fedchyshyn
CEO, Building Ontario Fund
“Building Ontario Fund’s investment represents a bold and innovative partnership
that we believe can become a model for how transformative housing projects are
delivered in Canada. This first-of-its-kind partnership has helped unlock the
opportunity to build one of the most ambitious and thoughtfully designed
master-planned communities in the country, centered around affordability,
connectivity, and long-term community building. We’re incredibly excited about
what this means for the future of Scarborough.”
– Matt Young
CEO, Republic Developments
“We’re excited to partner with Building Ontario Fund to advance our vision of
delivering a vibrant mixed-use community for Ontario residents. With its prime
location and proximity to transit, including the Scarborough GO Station, we
believe this neighbourhood will be highly attractive to both individuals and
families alike. Our partnership with BOF creates a clear path to begin
construction and deliver new affordable homes in the near term.”
– Jeffrey Kimel
CEO, Harlo Capital
ADDITIONAL RESOURCES
* 2026 Ontario Budget: A Plan to Protect Ontario
* Building Ontario Fund
* Republic Developments
* Harlo Capital
