Mississauga has launched a $44-million initiative aimed at making rental housing more affordable and accessible for residents.
Mississauga has launched a $44-million initiative aimed at making rental housing more affordable and accessible for residents.
Approved by city council on Wednesday, the Community Improvement Plan will provide grants to developers and homeowners to facilitate the construction of much-needed affordable rental housing in Canada’s seventh-largest city over the coming years.
City officials anticipate that this initiative will result in the creation of over 300 new affordable rental units and gentle density housing options within the next 36 months.
The $44 million has been earmarked to fund these grants, which will be available starting this fall through 2027 or until the funding is fully allocated. The program will support various types of rental units, including:
– Affordable and below-market rental units in multi-unit buildings, such as apartment complexes
– Gentle density rental units, including basement apartments, garden suites, triplexes, and fourplexes in lower-density areas
Mayor Carolyn Parrish, who convened the Mayor’s Housing Task Force for the first time on July 10, has emphasized her commitment to increasing the availability of affordable rental housing in Mississauga.
“It’s a key focus for our council, city staff, and my Housing Task Force. We must utilize every tool available to build more homes,” Parrish stated in a news release. “I encourage all homeowners and developers interested in constructing affordable rental units in Mississauga to take advantage of this incentive program. The time to build is now.”
City officials noted that market rents in Mississauga significantly exceed affordable levels, with renter households needing an annual gross income of nearly $100,000 to afford a one-bedroom apartment. The grant initiative aims to help developers, landowners, and homeowners offset some of the costs associated with providing new units at affordable rates.
This housing-focused Community Improvement Plan was developed in consultation with industry stakeholders and is intended to complement funding from other levels of government for both market and affordable rental construction.
Andrew Whittemore, Mississauga’s commissioner of planning and building, expressed optimism that the plan will alleviate some of the financial challenges developers encounter when creating affordable units.
“The availability of affordable rental housing is a critical issue in Mississauga, and financial incentives are a powerful tool to stimulate construction,” he remarked. “As we developed this program, we listened carefully to our industry partners and increased the total grants available per unit based on their feedback.”
The new program also introduces “two innovative housing solutions” to encourage the development of more affordable rental units:
– Tax Increment Equivalent Grants, which could offset a portion of increased property taxes associated with redeveloping multi-residential units, subject to council approval
– A City Land Acquisition program that allows municipally-owned property to be acquired and sold at nominal or below-market rates for affordable housing projects
Part of the funding for the incentive program will come from the federal Housing Accelerator Fund. In December 2023, Ottawa and Mississauga announced a $112.9-million agreement aimed at increasing housing availability and improving affordability.
المزيد
1