GTA Construction News staff writer
Construction will begin on 540 factory-built homes in the Arbo neighbourhood of Toronto’s Downsview Park, the first project announced by the federal housing agency Build Canada Homes (BCH).
The units will be prefabricated in factories and assembled on-site to speed construction. At least 40 per cent of the homes will be designated affordable, with a mix of studio, one-, two- and three-bedroom units designed for families.
BCH will issue a request for qualifications this week to select partners for design and construction, requiring builders to prioritize Canadian materials. No cost estimate or construction timeline has been released.
Housing and Infrastructure Minister Gregor Robertson said the new agency aims to deliver homes faster and more efficiently by using federally owned land.
The Arbo site covers 25 hectares and is part of a broader redevelopment of the former Downsview Airport and Canadian Forces base near Keele Street and Sheppard Avenue West. The overall project includes 15 planned neighbourhoods expected to accommodate about 115,000 residents and 52,000 jobs. The 540 units announced Tuesday are part of the first phase of 1,700 planned for Arbo.
To support development, the federal government is also providing up to $283 million to upgrade Toronto’s aging Black Creek sewer system. The 60-year-old network serves roughly 350,000 residents and has reached capacity, contributing to flooding and blocking approvals for new housing developments.
Robertson said the sewer expansion would enable the system to support growth of more than 60,000 additional homes. The City of Toronto is contributing more than $425 million to the project.
Mayor Olivia Chow said the federal funding will help protect homes and businesses from flooding while enabling new housing opportunities.
Build Canada Homes was launched last month with $13 billion to finance, oversee, and incentivize new housing construction. The agency has access to surplus public lands formerly managed by the Canada Lands Company and is led by former Toronto councillor Ana Bailão.
BCH’s first six projects across the country — in Dartmouth, Longueuil, Ottawa, Winnipeg, Edmonton, and Toronto — are expected to produce roughly 4,000 factory-built units. The agency has faced criticism from both the left and the right, with some saying it relies too heavily on market-driven incentives, while others argue it adds another layer of bureaucracy.
