The Ontario government is selling the former Hamilton Psychiatric Hospital through its Surplus Lands program in an effort to develop new long-term care homes.

Proceeds from the sale, the government says, will be used to develop two long-term care homes with 512 new long-term care beds as well as more than 1,000 additional homes.

“As our province continues to age, it is critical we protect Ontario and our seniors by building the long-term care capacity needed to meet increasing demand,” said Natalia Kusendova-Bashta, Minister of Long-Term Care. “By selling unused provincial lands in the GTHA, we are finding innovative solutions where they are needed most. When the Hamilton site is fully developed, 512 long-term care residents will have a modern and comfortable place to call home.”

Once fully developed, the Hamilton site will consist of:

• 512 new long-term care beds through the construction of two 256-bed homes;
• 41 affordable housing units and 270 seniors' housing units;
• 832 market housing units;
• 7 acres of land dedicated to Mohawk College; and
• 7 acres of land for municipal conservation use.

Under the plan, a local heritage building, Century Manor, will be converted into housing.

The homes will be located at 290 Fennell Ave West in Hamilton and will be operated by Schlegel Villages Inc.

The government says its approach will help address the increasing demand for long-term care beds and housing in large urban areas, where available land is scarce and costly.

“Our government is streamlining the process for selling underused provincial properties to save taxpayer dollars and accelerate the delivery of key infrastructure priorities, like building more housing and long-term care beds, and creating more jobs,” said Kinga Surma, Minister of Infrastructure. “The sale of the former Hamilton Psychiatric Hospital will enable 512 much-needed long-term care beds and more than 1,100 mixed housing units across the city of Hamilton, giving more residents and families the access to critical care they need and deserve.”

The program is part of the government’s commitment to build 58,000 new and upgraded long-term care beds across the province.

As of July 2025, 148 projects representing a total of 24,101 new and redeveloped beds are completed, under construction, or have ministry approval to construct.

The province also aims to launch a new construction funding support program to ensure long-term care operators and builders have additional flexibility and support to sustain current construction levels.