A major provincial investment is set to advance the first phase of the planned Scarborough Junction transit-oriented community in Toronto, unlocking the delivery of purpose-built rental housing on underutilized land surrounding GO Transit’s Scarborough GO Station.
The Building Ontario Fund (BOF) has announced an investment of up to CA$178 million to support the development of approximately 1,700 purpose-built rental homes, including 340 affordable units offered at below-market rents. The funding is intended to help move the project forward amid challenging financing conditions that have slowed residential development across Canada.
Led by Republic Developments and Harlo Capital, the broader Scarborough Junction Masterplan envisions the transformation of approximately 10.6 hectares of land surrounding the station into a mixed-use, transit-connected district. Designed by Giannone Petricone Associates, the approved plan includes 12 buildings reaching up to 58 stories, 7,655 residential units, more than 19,000 square meters of retail space, and over 5,200 square meters of institutional uses.
Construction on the initial phase is expected to begin in 2027, with the first residents anticipated by 2030. The affordable housing component will remain secured for at least 40 years and is intended to align with the City of Toronto’s affordability programs.
The investment highlights a growing role for public-sector financing in advancing large-scale urban development projects that have stalled due to market conditions. Established in 2024, the Building Ontario Fund was created to partner with private and institutional investors on projects deemed critical to the province’s long-term growth, using targeted investments to bridge financing gaps and accelerate delivery.
The announcement also reflects a broader shift toward transit-oriented development as a strategy for addressing housing shortages while maximizing the value of existing infrastructure. By concentrating thousands of homes around a major regional transit hub, Scarborough Junction seeks to support higher-density living patterns that reduce automobile dependence and strengthen connections between housing, employment, and mobility. The project illustrates how partnerships between public and private sectors are increasingly being used to unlock dense, mixed-use communities near transit.
Read more at Urban Toronto.Â