City of Mississauga awards funding for affordable rental units in eight new developments

At a Planning and Development Committee on March 24, Mississauga announced the recipients of the City’s $44 million Affordable Rental Housing incentive program.

The program, funded in part by the federal Housing Accelerator Fund, will kick-off a new wave of purpose-built rental construction citywide.

Only 2,200 rental units have been constructed in Mississauga since 2005. This funding will unlock more than 1,400 shovel-ready rental units including almost 400 with more affordable rents.This represents another step to expand the supply of affordable rental housing for Mississauga residents as the City works to address the housing crisis.

The incentive program, which was approved in July 2024, is designed to help increase Mississauga’s supply of affordable and below-market rental units. It also offers financial incentives for private and non-profit rental developers such as capital grants per affordable unit and waivers/grants for certain municipal fees and charges.

The City received a total of 12 applications from a variety of non-profit and private sector developers during an open call for applications.

The eight successful developments, located in six of the City’s 11 wards, will bring 1,450 new purpose-built rental units including 384 units with more affordable rents, 261 units with affordable rents, 123 units with below market rents and a variety of unit sizes including 200 family-sized units.

Average market rent is published annually by Canada Home and Mortgage Corporation (CHMC) and refers to the value of all units in the primary rental market. Average market rent is typically lower than the rents landlords advertise for new tenants.

The funding is designed for shovel-ready projects that have demonstrated they are ready to start construction within the next two years.

Successful applicants will receive a set capital grant per affordable unit as well as waivers/grants for certain municipal fees and charges. The funding will be issued approximately one month after building permit issuance provided all eligibility requirements are met.Units that are funded through the program must meet minimum unit sizes and remain affordable for a minimum of 25 years.

Unlike private condominiums which are often used as rentals but offer fewer protections for tenants, purpose-built rentals are built specifically for the rental market –

Mississauga’s development has been almost entirely comprised of market condominiums in recent years. In the Toronto Census Metropolitan Area, which includes Mississauga, roughly 60 per cent of apartment condominium units built between 2016 and 2021 were occupied by renters.

“This funding represents a transformative step forward in addressing Mississauga’s housing crisis. By creating over 1,400 new rental units – including 400 with more affordable rent prices –we’re providing real solutions for residents struggling to find secure and affordable housing. This program ensures a brighter, more inclusive future for our city,” said Mississauga Mayor Carolyn Parrish.

Getting more purpose-built rental housing under construction in Mississauga is a key action under the City’s housing plan and the Mayor’s Housing Task Force. These types of homes are more attainable for people who are new to the housing market or who have moderate incomes and provide more security for tenants over the long-term.

City staff will work with successful applicants as their projects move towards Building Permit issuance to ensure they continue to meet all necessary eligibility requirements.