The funding will help get more than 1,400 new rental units under construction including 25 per cent with more affordable or below-market rents.
March 24, 2025
As the City works to address the housing crisis, this represents another bold step to expand the supply of affordable rental housing for Mississauga residents.
Approved in July 2024, the incentive program is designed to help quickly increase Mississauga’s supply of affordable and below-market rental units. It offers financial incentives for private and non-profit rental developers including capital grants per affordable unit and waivers/grants for certain municipal fees and charges.
Successful applicants
The City received 12 applications from a variety of non-profit and private sector developers during an open call for applications. Located in six of the City’s 11 wards, the eight successful developments will bring:
- 1,450 new purpose-built rental units including 384 units with more affordable rents
- 261 units with affordable rents – which means rent is at or below 100 per cent of average market rent ($1,625 per month maximum for a 1-bedroom unit)
- 123 units with below market rents – which means rents are below 125 per cent of average market rent ($2,031 maximum for a 1-bedroom unit)
- A variety of unit sizes including 200 family-sized units (two or more bedrooms)
Average market rent is published annually by Canada Home and Mortgage Corporation (CHMC) and refers to the value of all units in the primary rental market (including older units, rent controlled etc.). Average market rent is typically lower than the rents landlords advertise for new tenants.
Financial incentives
The funding is designed for shovel-ready projects that have demonstrated they are ready to start construction within the next two years.
Successful applicants will receive a set capital grant per affordable unit ($130,000 per unit for affordable units or $60,000 per unit per below-market unit). They will also receive waivers/grants for certain municipal fees and charges. The funding will be issued approximately one month after building permit issuance provided all eligibility requirements are met.
Units that are funded through the program must meet minimum unit sizes and remain affordable for a minimum of 25 years.
Mississauga needs more purpose-built rentals
Purpose-built rentals are built specifically for the rental market – unlike private condominiums which are often used as rentals but offer fewer protections for tenants.
In recent years, Mississauga’s development has been almost entirely comprised of market condominiums. In the Toronto Census Metropolitan Area, which includes Mississauga, approximately 60 per cent of apartment condominium units built between 2016-2021 were occupied by renters.
Getting more purpose-built rental housing under construction in Mississauga is important and is a key action under the City’s housing plan and the Mayor’s Housing Task Force. These types of homes are more attainable for people who are new to the housing market or who have moderate incomes. They also provide more security for tenants over the long-term.
Next steps
City staff will work with successful applicants as their projects move towards Building Permit issuance to ensure they continue to meet all necessary eligibility requirements.
Fact Sheet
Read our fact sheet for details about the new rental developments.
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