City Hall
Council Approves New Affordable Housing Strategy
Toronto City Council has unanimously passed a multi-year affordable housing plan aimed at easing the growing housing crisis. The policy includes fast-tracked permits and incentives for developers.
By Feather Sand Chronicles Editorial Team | April 05, 2025 at 10:41
Toronto City Council has approved a bold new strategy aimed at tackling the city’s long-standing housing crisis. In a unanimous vote, councillors passed the Affordable Housing Acceleration Plan, which lays out a multi-year roadmap to create thousands of new rental units and streamline development processes for affordable projects.
The strategy focuses on three core pillars: increasing the supply of affordable homes, reducing regulatory delays, and offering incentives to private developers who include affordable units in new projects. According to city staff, the plan could add over 18,000 units over the next five years if fully implemented.
Mayor Olivia Chow praised the initiative as a 'turning point' for housing in the city. 'This isn’t just about housing—it’s about dignity, security, and inclusion,' she said at a press conference following the vote. She also acknowledged that while the plan won’t solve everything, it is a significant first step.
The plan includes the creation of a centralized housing development team within the city to cut down on bureaucracy and permit delays. Developers will be offered tax breaks and fast-tracked approvals if they meet affordability thresholds and environmental standards.
One major element of the plan is the use of city-owned lands for affordable housing construction. Parcels across Scarborough, Etobicoke, and the downtown core have already been identified. The city will partner with nonprofit builders and community housing agencies to maximize the potential of these sites.
Councillor Ana Bailão, who helped spearhead the strategy, emphasized the importance of multi-level government cooperation. 'We need provincial and federal support to unlock even more housing opportunities. This plan sets the stage for that collaboration,' she stated during council deliberations.
Community groups who have long campaigned for more affordable options expressed cautious optimism. 'It’s promising to see concrete action, but we’ll be watching closely to ensure promises are kept,' said Jennifer Davis of Housing for All Toronto, a local advocacy group.
Some critics noted that affordability metrics need further refinement. The plan defines “affordable” based on average market rent, which many argue still prices out low-income families. City officials said those concerns would be addressed in implementation phases through rent-geared-to-income provisions.
Several council members also raised concerns about ensuring neighbourhoods remain inclusive and balanced. 'We must prevent clustering all affordable units in certain wards. Equity means opportunity everywhere,' said Councillor Kristyn Wong-Tam.
In addition to new builds, the plan includes funding to preserve existing affordable units through renovations and landlord partnerships. This measure is intended to prevent the displacement of vulnerable tenants while adding to the overall stock.
The plan’s passage comes amid growing pressure on city leadership to act on homelessness and housing insecurity. Toronto’s shelter system is under strain, and the rental market continues to see record-high prices and limited availability.
Implementation is set to begin later this year, with quarterly progress reports to be issued publicly. As the city embarks on this ambitious effort, all eyes will be on the council to deliver real and lasting change for residents in need.