Canada is facing a housing crisis where far too many Canadians are struggling to find homes they can afford. Canada's new government is stepping up with a bold new approach and unprecedented investments to increase the housing supply in Canada.
Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada, joined Olivia Chow, Mayor of Toronto, and representatives from Build Canada Homes (BCH), the University Health Network (UHN), UHN Foundation and the City of Toronto to announce federal support for the next phase of Toronto's Social Medicine Housing Initiative.
This commitment is part of a broader effort by UHN and the City of Toronto to scale the Social Medicine Housing Initiative across three sites, with the intent to add approximately 200 supportive homes for people experiencing homelessness and living with complex health needs.
As part of this initiative, Build Canada Homes will provide $25 million to support the construction of 80 supportive housing units at the first of the three sites. The broader initiative also includes a $20 million contribution from the UHN Foundation and $19 million from the City of Toronto. These investments will help advance efforts to bring health care and housing together. The broader expansion would bring the Social Medicine Housing Initiative to more than 300 homes overall, representing one of the most significant efforts in Canada to bring health care and housing together.
The Social Medicine Housing model recognizes housing as a critical social determinant of health. By integrating deeply affordable housing with primary care, mental health and addictions services, and other community supports, it helps improve health outcomes, increase housing stability, and reduce reliance on emergency and acute care systems.
The model was first demonstrated through Dunn House, Canada's first Social Medicine housing project which opened in 2024 and provides homes for 51 residents formerly experiencing homelessness. Early results showed a 52 per cent reduction in emergency department visits and a 79 per cent reduction in hospital length of stay among residents, generating approximately $2.1 million in hospital savings in less than two years.
Building on the success of the original Dunn House project, Build Canada Homes invested nearly $22 million in Dunn House Phase 2, called Spring House. The project, being delivered by CreateTO, the City of Toronto's strategic real estate agency, will create 54 new supportive homes for seniors experiencing homelessness, with integrated health and community supports. The project is expected to break ground in late 2026.
Today's announcement represents the next phase in that partnership. Through this latest investment, Build Canada Homes, the University Health Network, and the City of Toronto are expanding a proven model that is improving outcomes for residents while helping reduce pressure on public systems.
Together with the Government of Canada's recent partnership with the City of Toronto to deliver more than 5,600 new rental homes, this investment reflects a commitment to increasing housing supply across the full continuum of housing need, including supportive housing for people experiencing homelessness and complex health challenges.
