GTA Construction News staff writer
The federal government is providing $21.6 million to support the construction of new supportive housing in Toronto’s Parkdale neighbourhood, part of a broader push to quickly expand the supply of affordable housing.
Housing and Infrastructure Minister Gregor Robertson announced today that the funding will go toward Dunn House Phase 2, a project being delivered in partnership with Build Canada Homes, the Province of Ontario, the City of Toronto and University Health Network.
The development will provide 54 rent-geared-to-income studio units for at-risk seniors, with health and social services available on site. The City of Toronto will lead delivery of the project as a public developer, with CreateTO developing the site using modular construction to reduce costs and speed up construction.
The investment falls under Build Canada Homes’ initial $13-billion capitalization announced in Budget 2025, which included $1 billion earmarked for transitional and supportive housing for people who are homeless or at risk of homelessness. The federal agency was created with a mandate to move quickly on projects that are ready to build and that incorporate innovative construction methods.
In addition to the federal contribution, Ontario will provide up to $2.6 million annually in operating funding for the project.
“Investing in projects like Dunn House Phase 2 is critical to solving the housing crisis at all ends of the spectrum,” Robertson said in a statement.
Ontario Municipal Affairs and Housing Minister Rob Flack said the project aligns with the province’s efforts to protect vulnerable residents through partnerships with other levels of government.
Toronto Mayor Olivia Chow said the first phase of Dunn House demonstrated that supportive housing integrated with health care can improve outcomes while providing stable homes.
Dunn House Phase 2 builds on Canada’s first Social Medicine Housing initiative, developed by University Health Network’s Gattuso Centre for Social Medicine in collaboration with the City of Toronto and community partners. The model integrates housing with supports that address social determinants of health, including housing stability, food security and access to care.
According to the federal government, early data from the first phase of Dunn House shows a 52 per cent reduction in emergency department visits among tenants and a 79 per cent decrease in hospital bed days, resulting in an estimated $2.1 million in annual health-care cost savings.
Build Canada Homes was launched in September 2025 to scale up the supply of affordable housing by leveraging public land, flexible financing tools and modern construction methods. Federal funding for Dunn House Phase 2 is subject to a signed contribution agreement.
