First-of-its-kind public-private initiative aims to expand affordable housing supply
TORONTO —
The Ontario government is committing $300 million to support the conversion of approximately 2,200 condominium units into long-term rental housing across the Greater Toronto Area (GTA), marking a significant intervention in one of Canada’s tightest housing markets.
The investment, delivered through the Building Ontario Fund (BOF) in partnership with High Art Capital, is designed to unlock stalled housing inventory while expanding access to affordable rental units. Of the total units, roughly 550 will be designated as affordable housing, with rents set at least 25 per cent below market rates or capped at 30 per cent of median household income in the GTA.
The province said the majority of the funding will be structured as a repayable loan, complemented by a small equity stake that enables BOF to participate in governance decisions tied to the project.
Addressing supply constraints through innovative financing
Ontario officials framed the initiative as a strategic response to both housing shortages and broader economic pressures, including ongoing uncertainty linked to global trade conditions.
“To support our plan to protect Ontario, our government is using innovative financing tools to unlock housing that meets the needs of families today and for years to come,” said Peter Bethlenfalvy, Minister of Finance. “Through the Building Ontario Fund, we are mobilizing private capital, reducing risk and accelerating the delivery of affordable rental housing that would not otherwise be available.”
The project targets unsold condominium inventory—units that might otherwise remain vacant due to softer demand in the ownership market. By converting these units into rental housing, the province aims to quickly increase supply without the long lead times associated with new construction.
Government officials emphasized that without BOF’s financial backing, many of these units would likely remain unoccupied, exacerbating affordability challenges in the region.
Long-term affordability and rental supply expansion
A key feature of the initiative is its focus on preserving affordability over the long term. Legal agreements tied to property titles will ensure that the 550 designated affordable units remain below market rates for their lifetime.
“This partnership reflects our government’s commitment to finding collaborative, practical housing solutions that meet the needs of Ontarians, so more people can thrive in their communities,” said Rob Flack, Minister of Municipal Affairs and Housing.
The fund is expected to hold ownership of the units for at least five years. After that period, the properties may be sold, at which point the BOF loan would be repaid. In addition to provincial funding, the initiative is projected to attract approximately $733 million in additional financing from institutional investors.
Public-private collaboration at scale
Executives involved in the project described it as a model for future housing solutions that leverage both public and private capital.
“This partnership demonstrates the power of collaboration between the public and private sectors to address housing challenges. By working together with High Art Capital and our service providers, we’re creating rental housing options in the near-term, and securing affordable homes for generations to come. This project was made possible by BOF’s participation, requiring no development charge, tax waivers, or direct subsidies to realize its affordability objectives. This type of innovative approach, a first of its kind at this scale, is exactly why BOF was created.”
- Michael Fedchyshyn
CEO of Building Ontario Fund
“Today’s announcement demonstrates what is possible when public and private capital work together with discipline and shared purpose. At a time when the GTA is facing a tight rental market and strong demand, this partnership converts vacant condominiums into approximately 2,200 professionally managed rental homes, including 550 units offered at affordable rents intended to be secured in perpetuity for working families.”
- Ryan Roebuck
Co-Founder and Managing Partner, High Art Capital
Broader economic strategy
The initiative forms part of Ontario’s broader economic agenda to strengthen competitiveness and resilience amid external pressures, including U.S. tariffs. The Building Ontario Fund plays a central role in that strategy by directing capital toward infrastructure projects with long-term economic returns.
In addition to housing, BOF’s mandate spans sectors such as energy, transportation, long-term care, municipal infrastructure and critical minerals—areas the province identifies as essential to sustaining growth.
By accelerating the conversion of underutilized residential assets into rental supply, Ontario is betting that targeted financial interventions can help stabilize housing markets while delivering measurable social and economic benefits.