The federal government is providing a $77-million low-interest loan to fund the construction of 175 purpose-built rental homes in Newmarket.

The funding is being provided through the Rental Construction Financing Initiative (RCFi).

The announcement took place at 200 Deerfield Road, where The Bakerfield Phase II is being constructed by The Rose Corporation. The building will offer purpose-built rental homes for middle-income individuals and families. Of the 175 units available, 31 will be accessible, and the project will be certified for compliance with the Accessibility for Ontarians with Disabilities Act.

"The Rose Corporation is committed to creating attainable rental and ownership housing alternatives in the communities we build in,” said Daniel Berholz of Rose Corporation. “The Bakerfield - Phases I & II are testaments to the effectiveness of CMHC's Rental Construction Financing Initiative, and we are proud of this new, purpose-built rental community that is poised to serve the growth needs of Newmarket for many years to come. To date, the demand for all range of suites at The Bakerfield - Phase I has been strong and we look forward to welcoming more residents to our community."

Construction started in March 2022, and substantial completion is expected in the fall of 2024.

The federal government says the construction of rental homes has not kept pace with the country's growing cities and population, leading to a decline in the existing and aging rental stock for decades. Its RCFi aims to stimulate the construction of rental housing across the country and help close housing gaps.