Investing in critical housing infrastructure to supercharge homebuilding in Toronto
Press Release
From: Housing, Infrastructure and Communities Canada
Toronto, Ontario, October 14, 2025 — Canadians are in a housing crisis. With the launch of Build Canada Homes, the government has stepped up with a bold new approach and unprecedented investments to increase the housing supply in Canada.
Central to our strategy is Build Canada Homes – a new federal agency that will build affordable housing at scale, including transitional and supportive housing, deeply affordable and community housing, and affordable homes for the Canadian middle class. Build Canada Homes will transform public-private collaboration and deploy modern methods of construction, as it catalyses the creation of a more productive Canadian housing industry. It will leverage public lands, offer flexible financial incentives, attract private capital, facilitate large portfolio projects, and support modern manufacturers to build the homes that Canadians need.
However, as investments are made in building more homes, they must be paired with investments in critical housing infrastructure. Homes for families can only be built if the drinking water, stormwater, and wastewater infrastructure is in place to support them.
To catalyse housing construction, today the Honourable Gregor Robertson announced generational investments in housing and infrastructure in Toronto. Federal funding will support:
- Upgrading Toronto’s Black Creek sewer infrastructure to catalyse the construction of 63,000 new homes. Through the Canada Housing Infrastructure Fund, the federal government will provide up to $283 million to expand capacity in Toronto’s Black Creek sewer system. Built in the 1960s, the Black Creek trunk sewer currently serves over 350,000 residents. Population growth has stretched the system beyond its limits, leading to flooding and blocking approval of new housing developments. The new investment, in partnership with the municipality, will support the construction of 17 kilometres of new infrastructure. Once complete, the project will:
- Catalyse the construction of up to 63,000 new homes in the Downsview area.
- Reduce the risk of flooding and protect water quality.
- Create immediate careers in construction and engineering.
- Support an additional 130,400 residents and over 65,000 jobs.
- Build Canada Homes’ first housing development project, delivering 540 new homes at Arbo Downsview in Toronto using modern methods of construction. At least 40% of the units on the Arbo Downsview site will be affordable, with a mix of studios, one-, two-, and three-bedroom homes, supporting middle class families. Build Canada Homes will launch a Request for Qualifications (RFQ) this week to identify Design-Build teams with proven expertise in factory-built housing and other modern methods of construction– including prefabrication, modular building, and mass timber – to ensure speed, affordability, and quality. Selected teams will also be required to prioritize Canadian resources – supporting home-grown industries and creating high-paying careers across the country.
Alongside the federal government, the City of Toronto will invest over $425 million toward the Black Creek Sanitary Trunk Sewer project to ensure stronger, more resilient infrastructure and enable homebuilding.
Budget 2025, to be tabled next month, will build on this momentum with further measures to lower costs for builders, catalyse private capital, and double the pace of homebuilding across Canada. Budget 2025 will spend less on government operations and reduce waste, so we can invest more to grow our economy, build more homes, and make life more affordable for you.
Quotes
“This critical wastewater infrastructure investment in Toronto will make it possible to get big housing projects off the ground. With the CHIF program and organisations like Build Canada Homes, we are partnering with governments, builders and communities to drive innovation in the homebuilding industry, bringing the right partners together to build and accelerate the delivery of more affordable homes for Canadians.”
— The Hon. Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
“Far too many Canadians are struggling to find an affordable place to call home, especially in our biggest cities. 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 Hon. François-Philippe Champagne, Minister of Finance and National Revenue
“Toronto is one of the fastest-growing cities in Canada, and we’re already hard at work building the affordable homes and infrastructure our residents need. This investment from the federal government, alongside the City of Toronto’s $425 million contribution, builds on that momentum, helping us unlock new housing opportunities and transform communities like Downsview. I want to thank the Government of Canada and Minister Robertson for their leadership and partnership in supporting Toronto’s vision of a vibrant, inclusive city where everyone has a place to call home.”
— Her Worship Olivia Chow, Mayor of Toronto
“Build Canada Homes is advancing new approaches to housing delivery. Our first development in Toronto will help demonstrate how coordinated public-private partnerships and innovation in home building can support the accelerated construction of below-market homes in growing communities. I’m honoured to lead Build Canada Homes at this pivotal moment and help deliver the housing Canadians can count on.”
—Ana Bailão, Chief Executive Officer, Build Canada Homes
Quick facts
- The Government of Canada’s Budget 2025 will be tabled in the House of Commons by the Prime Minister and the Minister of Finance and National Revenue, François-Philippe Champagne, on Tuesday, November 4, 2025.
- The Canada Housing Infrastructure Fund (CHIF) is investing up to $6 billion for the construction and upgrading of core public infrastructure that will enable housing growth in communities across Canada.
- CHIF is designed to help communities build the infrastructure necessary to support more homes and increase housing density.
- CHIF funding is contingent on Treasury Board approval and a signed contribution agreement.
- CHIF funding is conditional on fulfilling all requirements related to consultation with Indigenous groups and environmental assessment obligations.
- Launched on September 14, 2025, Build Canada Homes is Canada’s new federal agency that will build and finance affordable housing at scale, while catalysing a more innovative housing industry and increasing its productivity.
- Today’s announcement builds on a series of measures introduced this year to make life more affordable for Canadians and double the pace of housing construction over the next decade, including eliminating consumer carbon pricing, removing the GST for first-time homebuyers on new homes up to $1 million, and launching Build Canada Homes.
Associated links
Contacts
For more information (media only), please contact:
Renée LeBlanc Proctor
Senior Communications Advisor and Press Secretary
Office of the Minister of Housing, Infrastructure and Communities and Minister responsible for Pacific Economic Development Canada
Renee.Proctor@infc.gc.ca
Media Relations
Housing, Infrastructure and Communities Canada
613-960-9251
Toll free: 1-877-250-7154
Email: media-medias@infc.gc.ca
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