The Ontario government is investing $300 million through its Building Ontario Fund in partnership with High Art Capital, to support the conversion of approximately 2,200 condominium units in the Greater Toronto Area into long-term rental housing.

Approximately 550 of the homes will have rents set at 25 percent below market rates or at no more than 30 percent of the median household income in the GTA.

Most of the $300 million investment is structured as a repayable loan to the Building Ontario Fund, in addition to a small equity stake that will support the Building Ontario Fund’s role in project governance.

“To support our plan to protect Ontario, our government is using innovative financing tools to unlock housing that meets the needs of families today and for years to come,” said Finance Minister Peter Bethlenfalvy. “Through the Building Ontario Fund, we are mobilizing private capital, reducing risk and accelerating the delivery of affordable rental housing that would not otherwise be available.”

This initiative, which is the first-of-its-kind at this scale in the GTA, is intended to reduce housing pressure and seize on an opportunity to rapidly convert unsold condominium units into long-term rental housing.

Without the financial backing provided by the Building Ontario Fund, the government says many of these units would otherwise remain unsold or unoccupied.

In addition to the investment through the Building Ontario Fund, the fund expects to raise approximately $733 million in additional loans from other investors. The fund expects to maintain ownership of the units for at least five years. After that period, the fund plans to sell the units, at which point the Building Ontario Fund’s loan would be repaid.

Long-term affordability of 550 of the units will be protected through legal agreements and registrations on the title of the condominiums purchased as part of this investment, with the intention that these units remain affordable for a lifetime.

"This announcement demonstrates what is possible when public and private capital work together with discipline and shared purpose,” said Ryan Roebuck, co-founder and managing partner at High Art Capital. “At a time when the GTA is facing a tight rental market and strong demand, this partnership converts vacant condominiums into approximately 2,200 professionally managed rental homes, including 550 units offered at affordable rents intended to be secured in perpetuity for working families."

High Art Capital has launched an open and competitive market call inviting vendors to express interest in the project. Submissions are being accepted through High Art’s website.

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