Ottawa and Toronto are teaming up to invest in Toronto’s ageing Black Creek sewer infrastructure, paving the way for the construction of up to 63,000 new Downsview homes. Central to the strategy is Build Canada Homes, a new federal agency that will develop factory/modular-built housing, with at least 40% affordable units designated as affordable, including homes for Canada’s middle class.
Federal and municipal leaders made the announcement at a press conference on Tuesday, noting that the federal government will provide up to $283 million through the Canada Housing Infrastructure Fund (CHIF) to expand capacity in the Black Creek trunk sewer system. It was built in the 1960s and now serves more than 350,000 residents, but growth pressures have led to flooding and delayed approvals for new developments.
The new investment, made in partnership with the City of Toronto, will fund 17 kilometres of new sewer infrastructure. In addition to catalysing the construction of tens of thousands of new homes, the project will reduce flood risks, protect water quality, and support 130,400 additional residents and more than 65,000 jobs.
“Far too many Canadians are struggling to find an affordable place to call home, especially in our biggest cities,” François-Philippe Champagne, Minister of Finance and National Revenue, said in a statement on Tuesday. “Today’s investments in Toronto’s critical housing-enabling infrastructure will help deliver urgently needed homes for Canadians who need them. But this is just the beginning. Our full, ambitious plan — to be detailed in Budget 2025 — will lower costs for builders, catalyse private capital investments, and double the pace of homebuilding across Canada.”
The government also confirmed Build Canada Homes’ first development, which will see 540 new homes at Arbo Downsview using modern construction methods, like prefabrication, modular building and mass timber. As noted, at least 40% of the homes will be affordable, with a mix of studio, one-, two-, and three-bedroom units designed to support middle-class families.
Alongside the federal government, Toronto will invest more than $425 million toward the Black Creek Sanitary Trunk Sewer project to ensure stronger, more resilient infrastructure and enable homebuilding.
Budget 2025 will be tabled in early November, and federal officials say it will include further measures to lower costs for builders and double the pace of home construction across Canada.
