Toronto’s Bay Corridor is one of the most densely populated neighbourhoods in the city, home to major institutions like Queen’s Park, Women’s College Hospital, and the University of Toronto. Now, it is also the site of one of the city’s most ambitious affordable housing projects.
At 26 Grenville Street and 27 Grosvenor Street, Choice Properties REIT is advancing a two-tower, mixed-use development that will add hundreds of new purpose-built rental homes to the core. What sets this project apart is its scale: 239 of the units will be affordable rentals, making it the largest affordable housing initiative approved in the City’s 2025 Capital Funding round.
In March 2025, Toronto City Council committed $10 million in forgivable loan funding to support the project. The funding is tied to development milestones and ensures that construction will move forward without delay.
Affordability Impact
The addition of 239 affordable rental homes downtown is a milestone. These units—representing roughly 30 per cent of the total project—will give low- and moderate-income households the chance to live in a neighbourhood that has long been out of reach.
By placing affordability in the heart of the Bay Corridor, the project strengthens equity in access to housing, transit, and jobs. Families will benefit not only from housing security, but also from the new on-site 10,000 square foot childcare centre, community amenities, and a pedestrian-friendly design that connects to nearby transit lines.
Challenges
Like many downtown developments, Grenville-Grosvenor faces hurdles. Construction costs remain high, and balancing affordability with the financial realities of large-scale rental construction is never simple. The project’s success will depend on consistent public support and oversight to ensure that affordability commitments are honoured through completion.
Another challenge is replicability. Delivering nearly 240 affordable homes in a single project is rare in Toronto. Without systemic policy changes, such as deeper provincial and federal funding partnerships, this model risks remaining the exception rather than the rule.
Broader Context
The site has its roots in the Province of Ontario’s Affordable Housing Lands Program, which identified surplus public land that could be repurposed for housing. In 2019, City staff approved a rezoning application that paved the way for a mixed-income community: 30 per cent affordable rentals and 70 per cent market rentals.
Now, with construction underway and municipal funding secured, Grenville-Grosvenor has become a tangible example of how government, developers, and community stakeholders can align to deliver affordable housing at scale.
Looking Ahead
Once complete, 26 Grenville and 27 Grosvenor will not just add density—it will redefine what downtown affordable housing can look like. By integrating affordability, childcare, and community amenities into a modern high-rise development, the project sets a precedent for future builds across Toronto.
With 239 affordable homes, Grenville-Grosvenor is a reminder that large-scale public-private partnerships are possible—and necessary—if Toronto is to meet its ambitious housing targets.
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