Toronto's Sixplex Conundrum: A Crucial Conditional for Federal Housing Funding

Strategic Insights -

Toronto Mayor Olivia Chow is cautiously optimistic that the city's $30-million in federal housing funding is secure, despite Council's refusal to permit sixplexes across the entire city. The sixplex permit was meant to be a condition of Toronto's agreement with Ottawa, which requires municipalities to allow such buildings as a condition of receiving funding from the Housing Accelerator Fund. However, Toronto has only agreed to allow sixplexes in nine city wards, citing fears that the proposal did not have majority support.

Toronto's Housing Plan is ambitious, with faster development approvals and eviction-prevention programs. However, some critics argue that the city's approach is incremental and not bold enough. The city's zoning changes allow for "gentle density," where an increasing number of people live more closely together. This is a key feature of Ottawa's plan to boost housing across Canada.

Key Takeaways:

  • Toronto has agreed to allow sixplexes as of right in nine city wards, despite the initial proposal to permit such buildings across the entire city.
  • The city's refusal to permit sixplexes across the entire city may jeopardize $30-million in federal housing funding.
  • The federal government is negotiating funding agreements with over 170 municipalities and is rewarding "ambitious housing initiatives" from local governments.
  • Since the introduction of as-of-right building of fourplexes in 2023, construction has been completed on 108 multiplexes.
  • The city's zoning changes allow for "gentle density," where an increasing number of people live more closely together, in line with Ottawa's plan to boost housing across Canada.
  • Some critics argue that the city's approach is incremental and not bold enough, with high city fees stopping developers from building sixplexes in areas that do not permit them by right.

Statistics:

  • Toronto will receive $471-million over four years from the federal government as part of its housing agreement.
  • Since the introduction of as-of-right building of fourplexes in 2023, construction has been completed on 108 multiplexes.
  • Developers are charged between $63,000 and $68,000 per unit by the city to build a sixplex for rentals.
  • The city broke ground on 20,999 new homes in 2024, fulfilling 88 per cent of a target set by the provincial government.

Sources:

  • The Globe and Mail, "Toronto and Ottawa at odds over sixplex permits and $30-million in federal funding", June 23, 2023.
  • The Globe and Mail, "Toronto Mayor Olivia Chow on housing: 'We really need to sell it'", June 22, 2023.
  • Canada's Housing Ministry, "Housing Accelerator Fund", no date provided.
  • City of Toronto, "Toronto's Housing Plan", no date provided.