Toronto, Ont. | July 16, 2025 — A new whitepaper released today outlines a practical and sustainable solution to one of the biggest barriers to building affordable rental housing in Ontario: Currently, there is not sufficient or effective funding to cover both predevelopment and upfront investment capital - both of which are critical to anchor accelerated development of affordable housing in the Province.
The report was developed by global consultancy Arcadis and commissioned by WoodGreen Community Services and the Building Industry and Land Development Association (BILD). It proposes the creation of a provincially backed Affordable Housing Revolving Fund (AHRF) that would provide predevelopment financing and upfront capital to affordable housing developers.
The fund would address a major gap in Ontario’s current financing system by providing capital for planning, pre-development, design-related work and upfront investment capital gap. These early-stage development anchors are not sufficiently covered by traditional CMHC or other lenders that focus on financing long term debt. Funding this early development incubation phase is essential for getting affordable housing projects to the “shovel ready” stage.
“Right now, promising housing projects are stalling due to inadequate predevelopment and upfront investment capital,” said Mwarigha, Vice President, Housing Growth, Development & Asset Sustainability at WoodGreen. “The AHRF would give non-profit and purpose-built rental developers the financial foundation they need to leverage existing long-term lenders to scale up affordable housing development in Ontario.”
The AHRF would operate as a self-sustaining fund. As loans are repaid with moderate interest, the money would be reinvested into future projects. This would create an ongoing cycle of funding to support the continuous development of new affordable housing across the province.
In addition to proposing the model, the whitepaper includes a real-life test case to demonstrate its potential. It highlights successful revolving funds in other North American jurisdictions and analyzes how the AHRF model could have impacted a recent WoodGreen affordable housing development in Toronto. This analysis shows that the fund could have reduced project delays, lowered borrowing costs, and improved the overall financial viability of the project.
The whitepaper highlights several benefits of the proposed fund:
- Lower borrowing costs at the early stages of development
- Improved viability of affordable housing projects
- Shorter development timelines and lower overall project costs
“This AHRF model can play a pivotal role in meeting rental housing targets. The model is a tool to secure initial funding for predevelopment and upfront capital and provides certainty in the rental housing market for both private and non-profits developers to pursue viable mixed-income housing projects." – Dave Wilkes, President & CEO, BILDGTA.
“Securing reliable predevelopment funding, including upfront investment capital, is challenging for many rental housing developers. The AHRF model can bridge the initial gap in financing so that private and non-profit developers can initiate more mixed-income rental housing that is desperately needed right across Ontario” – Tony Irwin, President & CEO, Federation of Rental-housing Providers of Ontario (FRPO)
Sector leaders and stakeholders are encouraging the Province of Ontario to adopt the recommendations in the whitepaper and work with housing sector partners to launch the Affordable Housing Revolving Fund.
To read the full whitepaper, visit woodgreen.org/AHRF.
ABOUT WOODGREEN COMMUNITY SERVICES: WoodGreen is one of the largest social service agencies in Toronto, serving 40,000 people each year. We offer over 75 programs and services tackling the social determinants that affect the health and well-being of individuals in our community. Deeply rooted in our community for 85 years, we are a United Way Anchor Agency and member of the East Toronto Health Partners (ETHP), working to create innovative solutions to address vital social needs. Learn more at woodgreen.org.
ABOUT THE BUILDING INDUSTRY AND LAND DEVELOPMENT ASSOCIATION (BILD)
BILD is the voice of the home building, land development, and professional renovation industry in the Greater Toronto Area. Its members build a range of housing types, including rental apartments, family homes, and complete communities. Visit bildgta.ca for more information.
ABOUT ARCADIS
Arcadis is the world's leading company delivering sustainable design, engineering, and consultancy solutions for natural and built environments. Learn more at arcadis.com.
For more information or to arrange an interview, please contact:
Jon Reed, WoodGreen Sr. Manager, Marketing & Communications [email protected]