Connect Homes has announced its first housing project, 511 Kingston Road, a 90-unit, 80,000 square foot purpose-built rental development that will deliver both affordable and market-rate rental units. Located in The Beaches neighbourhood of Toronto, construction is now underway thanks to the collaborative efforts of three organizations with distinctly different mandates.
Collaborative Effort Transforms Wasteland
Connect Homes, a mortgage finance company, Neighbours, a Toronto non-profit supportive housing agency, and Streetcar, a developer, have joined forces to transform a site that had been reduced to a wasteland. Marcus Tzaferis, founder and CEO of Connect, described the site as an abandoned three-storey deep hole in the ground, the result of a luxury condo initiative that went awry due to a developer who created what he calls a "pretty significant problem."
Stuck with an abandoned site and very few options, Tzaferis reached out to a group of real estate consultants to determine the best path forward. It became apparent that the market did not need a 30-unit luxury condominium with 4,000 square foot units.
Changing the Narrative of Affordable Housing
According to a release issued by the three organizations, the location is "helping to change the narrative of what affordable housing looks in Toronto." The 80,000 square foot development will deliver 90 new homes, one-third of which are designated as affordable units to meet critical community needs.
"A once-planned luxury condo project that fell on hard times, Connect Homes stepped in to save the site and turn it into new rental supply, including affordable homes that will help transition Neighbours residents out of supportive housing into stable affordable homes, helping them move along the housing continuum," the release states.
The project represents a collaborative effort between private and public partners, including the City of Toronto's Rental Housing Supply Program (RHSP) and the Canadian Mortgage and Housing Corporation's (CMHC) Affordable Housing Fund, to deliver mixed-income housing that responds to the city's growing need for rental supply and high-quality affordable options.
Support from City and CMHC
Discussion on what to do with the site began early last year, according to Tzaferis. The project, he adds, "is helping change the narrative of what affordable housing is. It reflects a collaborative effort to bring forward inclusive, mixed-income housing that meets the city's growing demands for more rental housing and quality affordable rental options that support people transitioning through the housing continuum."
Gautam Muherjee, CEO of Neighbours, an organization that currently manages 54 residential locations across Toronto, says that the "project exemplifies a collaborative effort to bring forward inclusive, mixed-income housing that meets the city's growing demand for quality affordable rental options and we're excited that our clients will have the opportunity to live in a beautiful new building in a great neighbourhood."
In addition to the involvement of the three organizations, the City of Toronto is contributing $7.8 million in capital funding to the project through its RHSP and, more importantly, the project will receive a property tax exemption for up to 40 years. Brad Bradford, city councillor for Beaches-East York, says the municipality "needs more homes and this project shows what's possible when the private sector, non-profits and governments work together."
Amenities and Completion Timeline
Tenants who move in will have access to assorted amenities once the building is completed, which is expected to take place in early 2028. Tzaferis, meanwhile, says "it is incredible what can happen when a bunch of good people get together. We had a lot of help to make this thing happen."
