City awards funding for affordable rental units in eight new Mississauga developments

Today at Planning and Development Committee, Mississauga will formally announce the recipients of the City’s $44 million Affordable Rental Housing incentive program. The program, funded in part, by the federal Housing Accelerator Fund, will kick-off a new wave of purpose-built rental construction citywide.

Since 2005, only 2,200 rental units have been constructed in Mississauga. This funding will immediately unlock more than 1,400 shovel-ready rental units including almost 400 with more affordable rents.

As the City works to address the housing crisis, this represents another bold step to expand the supply of affordable rental housing for Mississauga residents.

Approved in July 2024, the incentive program is designed to help quickly increase Mississauga’s supply of affordable and below-market rental units. It offers financial incentives for private and non-profit rental developers including capital grants per affordable unit and waivers/grants for certain municipal fees and charges.

Successful applicants

The City received 12 applications from a variety of non-profit and private sector developers during an open call for applications. Located in six of the City’s 11 wards, the eight successful developments will bring:

• 1,450 new purpose-built rental units including 384 units with more affordable rents
  • 261 units with affordable rents – which means rent is at or below 100 per cent of average market rent ($1,625 per month maximum for a 1-bedroom unit)
  • 123 units with below market rents – which means rents are below 125 per cent of average market rent ($2,031 maximum for a 1-bedroom unit)
• A variety of unit sizes including 200 family-sized units (two or more bedrooms)

Average market rent is published annually by Canada Home and Mortgage Corporation (CHMC) and refers to the value of all units in the primary rental market (including older units, rent controlled etc.). Average market rent is typically lower than the rents landlords advertise for new tenants.

Financial incentives

The funding is designed for shovel-ready projects that have demonstrated they are ready to start construction within the next two years.

Successful applicants will receive a set capital grant per affordable unit ($130,000 per unit for affordable units or $60,000 per unit per below-market unit). They will also receive waivers/grants for certain municipal fees and charges. The funding will be issued approximately one month after building permit issuance provided all eligibility requirements are met.

Units that are funded through the program must meet minimum unit sizes and remain affordable for a minimum of 25 years.

Mississauga needs more purpose-built rentals

Purpose-built rentals are built specifically for the rental market – unlike private condominiums which are often used as rentals but offer fewer protections for tenants.

In recent years, Mississauga’s development has been almost entirely comprised of market condominiums. In the Toronto Census Metropolitan Area, which includes Mississauga, approximately 60 per cent of apartment condominium units built between 2016-2021 were occupied by renters.

Getting more purpose-built rental housing under construction in Mississauga is important and is a key action under the City’s housing plan and the Mayor’s Housing Task Force. These types of homes are more attainable for people who are new to the housing market or who have moderate incomes. They also provide more security for tenants over the long-term.

Next steps

City staff will work with successful applicants as their projects move towards Building Permit issuance to ensure they continue to meet all necessary eligibility requirements.

Quotes

“This funding represents a transformative step forward in addressing Mississauga’s housing crisis. By creating over 1,400 new rental units – including 400 with more affordable rent prices –we’re providing real solutions for residents struggling to find secure and affordable housing. This program ensures a brighter, more inclusive future for our city.” – Mississauga Mayor Carolyn Parrish

“The strong interest in this program from both non-profit and private sector developers shows that financial incentives can be a powerful tool to stimulate construction during a housing crisis. We’re thrilled to help get these projects across the finish line and bring much-needed, stable and more affordable rental housing to Mississauga as quickly as possible. – Andrew Whittemore, Commissioner, Planning and Building

“We’re excited to be part of Mississauga’s Affordable Rental Housing CIP, making below-market homes a reality. Our Tomken Road project will feature a lush urban landscape and carbon-free operations creating beautiful, healthy, and resilient homes built for the future. Kindred Works is dedicated to high-quality, sustainable living — and thanks to programs like these, our homes can be more affordable, contributing to a greener, more inclusive community.” – Tim Blair & David Constable, Co-founders, Kindred Works

Fact Sheet

Read our fact sheet for details about the new rental developments.

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• Housing
• Planning and Building