In a significant move to address the housing crisis, construction has officially begun on Toronto's first new co-operative rental housing project in more than two decades. This milestone signals a shift in funding and political will towards creating permanently affordable homes.
A Landmark Project for Scarborough
The 21-storey Cedars South Tower, located at Markham Road and Dunelm Street in Scarborough, will bring 245 below-market, rent-controlled co-operative rental units to the community. Developed by the non-profit Options for Homes, the tower is the first phase of a larger 783-unit master-planned community known as The Cedars.
The project's financing represents a collaborative effort. Last month, the federal government, through its Co-operative Housing Development Program (CHDP), committed an estimated $137 million in investment. The City of Toronto also played a crucial role by selling the city-owned land to the developer, waiving municipal development charges, property taxes, and permit fees, and fast-tracking approvals.
Financing a Sustainable Model
Daniel Ger, CEO of Options for Homes, clarified that the federal funding is not a grant but a financing arrangement similar to a traditional mortgage. "The capital will be used for construction costs and will be paid off from the revenues brought in from rent co-op members pay each month," Ger explained. This model ensures the long-term sustainability of the affordable housing.
Upon completion in 2028, the building will be operated by the Co-operative Housing Management Network, which will also be responsible for finding member-residents. Options for Homes will hand over the completed project and focus on constructing the community's subsequent phases, which include another tower, mid-rises, and townhomes for market sale.
A Signal of Changing Priorities
This project is being hailed as proof that approaches to housing funding are evolving. Scarborough MP Bill Blair stated that such projects help residents stay in their communities close to work and family "without being priced out."
Daniel Ger emphasized the unprecedented alignment of government support. "We are in a moment right now where you have multiple levels of government that are all committed to finding ways to bring affordable housing on fast," he said, praising the City of Toronto for its swift approval process. He added that while federal signals are positive, successful delivery requires committed community partners on the ground.
The groundbreaking of Cedars South Tower marks a hopeful turn for affordable housing in Toronto, offering a replicable model of partnership between non-profit developers and various levels of government to create lasting, community-focused homes.
