Construction has started on a mixed-income rental development on Danforth Avenue that will deliver more than 400 purpose-built rental homes.

Representatives from Woodbourne, Neighbours Community Homes, the City of Toronto, and Le Théâtre français de Toronto gathered for a groundbreaking ceremony at 1111 and 1117 Danforth Avenue. The connected developments will include affordable, deeply affordable, rent-controlled, and market-rate units. While housing is termed affordable when it costs less than 30 per cent of a household’s before-tax income, deeply affordable housing meets that criteria for the lowest-income households.

Mayor Olivia Chow said the project shows what is possible “when the City finds the right local partners who are also committed to solving the housing crisis.”

The development combines two adjacent plots under a co-ordinated design and construction approach. Shared infrastructure and synchronized approvals are expected to improve efficiency and lower construction costs.

The non-profit component at 1117 Danforth Avenue will replace 27 existing rental homes and add 81 new units. The building will include 40 affordable homes and 41 rent-controlled units. Neighbours Community Homes, a non-profit housing provider, will own and operate the building. The organization provides affordable and supportive housing across the Greater Toronto Area.

“Our goal is not simply to build affordable housing, but to create strong, inclusive communities where people with diverse backgrounds can thrive together,” said Gautam Mukherjee, CEO of Neighbours Community Homes.

The City of Toronto committed more than $13 million in capital funding and more than $14 million in incentives through its Rental Housing Supply Program.

Permanent home for French theatre

Woodbourne’s adjacent development at 1111 Danforth Avenue will also provide a permanent home for Le Théâtre français de Toronto at street level. The theatre space supports mixed-use development and contributes to the neighborhood’s cultural amenities.

Nick Macrae, president of Woodbourne, said the project demonstrates how collaboration among private developers, non-profit housing providers, governments, and community organizations can increase housing supply.

City officials said its development review team worked closely with Woodbourne and Neighbours Community Homes to align approvals and construction schedules. Officials said the approach reduced timelines, lowered costs, and allowed both projects to proceed simultaneously.

The project is one of 50 affordable housing developments currently under construction across Toronto.