Ontario Construction News staff writer
Toronto is marking the start of construction on a new mixed-income rental development in the Beaches, with officials joining developers on Monday to break ground on 90 new homes at 507–511 Kingston Road.
The project, led by Cannect Homes in partnership with Neighbours and Streetcar Developments, will convert a previously proposed condominium development into a purpose-built rental building. Once complete, it will deliver 90 rental units, including 30 affordable homes and 60 rent-controlled units.
City officials say the project is being supported through the City of Toronto’s Rental Housing Supply Program (RHSP), a financing and incentives initiative designed to accelerate new rental construction and improve affordability across the city.
Through RHSP, the City of Toronto has contributed $7.8 million in capital funding to the project, along with additional supports including a property tax exemption for the duration of the 40-year affordability period.
The program, launched to advance the goals of the City’s HousingTO 2020–2030 Action Plan, provides a range of tools for eligible projects, including capital and pre-development loans, fee relief, and tax exemptions for affordable and rent-controlled units. City officials say it is intended to help restart stalled projects and encourage new rental housing development in Toronto.
Mayor Olivia Chow said the development reflects the intent behind the program.
“We created the Rental Housing Supply Program in 2024 with projects exactly like this one in mind. Instead of luxury condos, 511 Kingston will now be home to an inclusive rental community, made possible by $7.8 million in capital funding and incentives from the City,” Chow said.
Councillor Brad Bradford (Beaches–East York) said the project demonstrates what can be achieved through cross-sector collaboration.
“I’m excited to attend the groundbreaking of 507-511 Kingston Rd., a purpose-built rental project that shows what’s possible when the private sector, non-profits, and governments work together,” Bradford said. “Together, we’re delivering new market and affordable housing for Beaches–East York.”
Cannect Homes founder and CEO Marcus Tzaferis said the development is intended to combine affordability with design quality.
“511 Kingston Road represents an exciting new approach to inclusive housing. It shows that affordable housing can be synonymous with taste, quality, and modern living,” Tzaferis said.
Neighbours CEO Gautam Mukherjee said the project reflects a collaborative response to Toronto’s ongoing housing shortage.
“As Toronto continues to face a housing shortage, we’re proud to help create homes with 30 per cent of units deeply affordable,” Mukherjee said. “This project exemplifies a collaborative effort to bring forward inclusive, mixed-income housing.”
Construction is now underway, with completion expected to add 90 new rental homes to the Beaches community upon delivery.
