Federal Government announces over $157 million for new rental homes in London

London, Ontario, November 15, 2023

Today, the federal government announced over $157 million to build 648 purpose-built rental homes across two projects in London and St. Thomas. The funding will come as fully repayable low-interest loans through the Rental Construction Financing Initiative (RCFi).

The announcement was made by Peter Fragiskatos, Parliamentary Secretary to the Minister of Housing, Infrastructure and Communities and Member of Parliament for London North Centre, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, alongside Arielle Kayabaga, Member of Parliament for London West.

Located at 391 South Street in London, the first project is a two-tower building containing 588 purpose-built rental units. The building includes 2 levels of underground and a 4 level above ground parking structure, as well as multiple amenities including a gym, theatre room, lounge, party room and a large outdoor patio area. The project, expected to be completed by the summer of 2024, received $142.8 million through RCFi, and $6.7 million from the City of London.

The second project announced today is the Inglewood Modular project located at 300 Manor Road in St. Thomas, a three-storey building containing 60 purpose-built rental units for middle income Canadians. This project received over $14.2 million through the RCFi and is expected to be completed by the fall of 2024.

Canada’s construction of rental homes has not kept pace with the country's growing cities and population, leading to a decline in the existing and aging rental stock for decades. To tackle this issue, the federal government introduced the RCFi to help build more rentals across the country. Increasing the overall supply of rental housing is crucial to creating stronger and more vibrant communities that Canadians can feel proud to call home.

Quotes:

“We need to boost housing supply, this is why we are making strategic investments, through programs like the Rental Construction Financing Initiative, to build much-needed rental units across the country. All Canadians deserve a safe place to build and live their lives in, and we will ensure this becomes a reality.”
– The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

“The Government of Canada is committed to working with all communities to meet the challenge of building more rental housing. Through the Rental Construction Financing Initiative, our government is increasing the supply of new rental units by investing over $157 million to build a total of 648 units in London and region. These homes will benefit Londoners and their families, making communities like London more inclusive and equitable.”
– Peter Fragiskatos, Parliamentary Secretary to the Minister of Housing, Infrastructure and Communities and Member of Parliament for London North Centre

“As our population grows and changes, the need for housing becomes increasingly crucial, and purpose-built rentals are an essential part of the solution. The Rental Construction Financing Initiative (RCFi) steps up to the challenge by incentivizing the construction of purpose-built rental homes. Today’s announcement will add 648 units to the rental stock for our communities in London and St. Thomas, so that no one in our community is left behind.”
– Arielle Kayabaga, Member of Parliament for London West

“As our community expands, the imperative for housing intensifies. I applaud the federal government’s commitment to investing in the heart of our communities by providing housing for middle-income families and individuals. The construction of purpose-built rental homes will contribute to the dynamic growth of London and the surrounding areas, creating a more vibrant and just community for all.”
– Josh Morgan, Mayor of London

Quick facts:

The Government of Canada’s National Housing Strategy (NHS) is an ambitious, 10-year plan that will invest more than $82 billion to give more Canadians a place to call home.
The Rental Construction Financing Initiative (RCFi) provides fully repayable low-interest loans to encourage the construction of more purpose-built rental housing for middle income Canadians. It creates a positive impact to the housing system at minimal cost to taxpayers.
- RCFi is one of many programs and initiatives under the National Housing Strategy designed to help address housing needs across the housing continuum.
- RCFi complements other NHS initiatives that focus on funding affordable housing units for lower-income households.
- Through RCFi, the federal government is encouraging the construction of more than 71,000 rental units.
- A stable supply of purpose-built rental housing is essential for more people in Canada to have access to housing that meets their needs.