Toronto’s Housing Now Initiative: A Step Forward for Affordable Housing
The City of Toronto’s dedicated housing agency, CreateTO, recently released an update on the ambitious ‘Housing Now’ initiative. This initiative is gaining momentum with some of the city’s most influential developers joining forces to address the housing crisis. Prominent names such as KingSett Capital, Greenwin, Tridel, Kilmer-Tricon, Ellis Don, and Windmill are stepping up to bring these projects to life, reflecting a significant collaboration between public and private sectors.
The June 5 update from CreateTO Chief Executive Officer, Vic Gupta, provided detailed insights into the progress of Housing Now. Among the highlights were three priority housing sites: 5207 Dundas Street West, 140 Merton Street, and 50 Wilson Heights Boulevard. These sites represent a crucial phase in the initiative’s development, each poised to deliver substantial numbers of new homes.
The first major milestone comes with the construction now underway at 5207 Dundas Street West. This site marks the first tangible progress for Housing Now, albeit over four years after the initiative’s launch. The project, a partnership between Kilmer Group and Tricon Residential, aims to deliver 725 new residential homes, including 218 affordable rental units, with first occupancy expected by 2027. This development is part of a larger plan for the Bloor Kipling area, which will eventually provide at least 2,781 residential homes, including 904 affordable rentals.
Another priority site, 140 Merton Street, is set to bring 294 new rental homes within a 29-storey tower near Yonge Street and Davisville Avenue. The project, a collaboration between Missanabie Cree First Nation and Ellis Don Community Builders, is scheduled to begin construction in September 2024. The project’s revised zoning plan, adding 11 more storeys than initially planned, reflects a concerted effort to maximize housing density in high-demand areas. The approval from the CMHC’s credit committee underscores the financial viability and support for this project.
At 50 Wilson Heights Boulevard, the project partners Greenwin, Tridel, and KingSett plan to create 1,484 new residential homes. This includes 520 affordable rental units, 520 market rental units, and 444 market condominiums. The site will also feature a new childcare center, commercial spaces, a park, and a community space for non-profit organizations. The construction is expected to launch in 2024, following the clearing of conditions for construction of services.
CreateTO’s update also highlighted progress on other significant sites. At 2444 Eglinton Avenue East, a partnership between Windmill, Civic Developments, and the Co-operative Housing Federation of Toronto is set to develop one of the largest affordable housing projects in Ontario in the past 25 years. The project will include three towers and deliver 919 new units, encompassing affordable and market co-op units as well as condos. This development is a milestone for affordable housing, signaling a significant investment in sustainable and community-focused living spaces.
Overall, the City of Toronto has earmarked 22 sites for Housing Now, aiming to produce over 16,000 new homes, with approximately one-third designated as affordable rentals. This initiative represents a critical step towards addressing the housing shortage and ensuring more equitable access to housing in one of Canada’s largest cities.
As Toronto embarks on this extensive development journey, it raises crucial questions for its residents and policymakers. How will these new developments shape the city’s landscape and community dynamics? Will they be enough to meet the growing demand for affordable housing? And most importantly, what steps can be taken to ensure that these projects benefit all residents, especially the most vulnerable?
The success of Housing Now could serve as a model for other cities grappling with similar housing challenges. It invites us to think deeply about sustainable urban development and the role of collaboration between public and private sectors in solving critical social issues.
Toronto’s Housing Market: Rate Cut Impact and Future Prospects
For months, real estate experts and economists speculated on the impact of the Bank of Canada’s first interest rate cut. Many believed that this cut would invigorate the Toronto housing market, similar to the response following last spring’s two-month rate pause. The anticipation was high, with expectations that buyers would flood back into the market. However, two weeks after the Bank of Canada cut the key overnight rate by 0.25 percentage points, the impact appears minimal.
Realtor Sean Mayers of Century 21 Regal Realty reported that even competitively priced listings in desirable neighborhoods, such as a detached home near Avenue Road and the 401, are seeing little activity in terms of offers. Buyers seem to be holding out for another rate drop, while sellers remain hesitant, pricing their homes above market value, hoping for a surge in prices that has yet to materialize.
The Toronto real estate market remains at a standstill, with affordability stretched to near record highs, making it difficult for first-time homebuyers to enter the market. According to John Lusink, president of Right at Home Realty, sales in May were down 22% year over year, a trend likely to persist unless there are more significant rate cuts. Despite an increase in listings, the number of transactions remains flat. Lusink suggests that the market may react if another rate cut is announced in July.
Industry insiders are now focused on the Bank of Canada’s next move, with economists forecasting one or two more rate cuts by the end of the year. Even a small reduction, such as another 0.25 percentage point cut, could boost buyer and seller confidence, indicating a faster-than-anticipated rate cut cycle.
John Pasalis, president of Realosophy, noted that the recent rate cut was too small to make a significant impact. He emphasized that interest rates are still too high to trigger a market rally. This contrasts with last year’s scenario, where a pause in rate hikes led to a rush of buyers and a reversal in declining prices. However, subsequent rate hikes and leveling off throughout 2023 and the first half of 2024 have made housing less affordable, with the Bank of Canada’s housing affordability index reaching its highest since the 1990s.
Despite the overall market sluggishness, some neighborhoods are experiencing increased activity, particularly for low-rise housing. Cailey Heaps, CEO of the Heaps Estrin Real Estate Team, reported that areas like Leaside and Lawrence Park are seeing higher transaction volumes due to significant demand and low inventory. Buyers with existing equity are leveraging it to upgrade to larger family homes.
Conversely, the condo market remains subdued. Pasalis observed that sales continue to decline, and listings have increased even after the rate cut, with no signs of improvement in the condo sector. The pre-construction market also faces challenges, as many buyers struggle to close deals due to higher interest rates compared to when they initially bought. This has led some buyers to walk away from large deposits or sell their units at significantly reduced prices, which could depreciate the value of the buildings and affect overall market confidence.
Investors, particularly those who are over-leveraged, remain cautious about re-entering the market due to elevated interest rates. Despite rising rents, which in some cases do not cover mortgage and maintenance costs, the potential for positive cash flow remains uncertain. However, Heaps sees a “huge opportunity” for investors willing to take on some risk, as the rental market shows strong demand with multiple offers.
As Toronto’s housing market navigates these complexities, one critical question looms: What will it take to truly revitalize the market? Will further rate cuts suffice, or are there deeper, systemic issues that need addressing to ensure affordable and sustainable housing for all? The answers to these questions will shape the future of Toronto’s real estate landscape and the lives of its residents.
The Untold Story Behind This Week’s Triple Shooting: Mortgage Fraud, Schemes, and Tragedy
In the midst of the pandemic, the complex criminal case against Arash Missaghi was unraveling. Missaghi, known as a “prolific fraudster,” faced charges of sophisticated mortgage fraud exceeding $5,000, conspiracy, and accessory after the fact. As the virtual courtroom struggled to maintain proceedings, Crown attorney Mitchell Flagg expressed concerns about several accused, including Missaghi, not having legal representation. Justice John McMahon warned the defendants about the severe consequences if found guilty and insisted the trial would proceed. However, just ten days later, all charges were mysteriously withdrawn.
On Monday, a tragic event unfolded. Missaghi and his associate, mortgage agent Samira Yousefi, were killed by gunman Alan Kats at their office in North York. After an argument, Kats shot Missaghi and Yousefi before turning the gun on himself. Kats’ widow, Alisa Pogorelovsky, revealed that her husband blamed Missaghi and others for the loss of his family’s life savings, a despair that culminated in this fatal confrontation.
Missaghi’s history of alleged fraud spanned over two decades and ensnared countless victims. Despite numerous charges, he was never convicted, leaving many lawsuits unsettled and money lost. Lawyer Doug Bourassa, who litigated against Missaghi for over a decade, described him as a “dedicated wrongdoer” who skillfully evaded consequences through shell companies and manipulation.
Missaghi’s criminal activities were first noted over 20 years ago when he was charged with defrauding companies of $3 million. Despite filing for bankruptcy in 2000, his schemes reportedly grew more elaborate, focusing on mortgage fraud. Kats and Pogorelovsky’s lawsuit alleged that Missaghi, through Yousefi, convinced them to leverage nearly $1.3 million to invest in properties that yielded no returns, leading to their financial ruin.
Missaghi’s ability to avoid conviction highlighted systemic failures. The regulatory bodies, criminal justice system, and bankruptcy regime all failed to stop him. Even lawyers involved, such as Fred Yack and Shahryar Mazaheri, denied wrongdoing despite allegations of their involvement with Missaghi’s fraudulent activities.
Missaghi’s associates faced severe consequences. Golnaz Vakili, a rookie lawyer, fled the country in 2013 after being implicated in a $17 million fraud case. She later returned, pleaded guilty to lesser charges, and lost her license. Rasik Behari Mehta, another young lawyer, surrendered his license after admitting involvement in fraudulent transactions under duress and threats from Missaghi.
Despite multiple police jurisdictions investigating Missaghi, charges were often withdrawn or settled out of court. Peel Regional Police confirmed that a fraud report filed against Missaghi in 2018 led to an investigation but no charges, as the complainant settled civilly. The complexities of prosecuting such fraud cases often resulted in a lack of criminal charges.
Missaghi’s death, though it brings an end to his schemes, leaves a trail of devastation. Families lost life savings, and properties were quickly diminished. Kats and Pogorelovsky’s lawsuit represents many who sought justice but found it elusive due to Missaghi’s adept manipulation and the failure of institutions to protect victims.
As we reflect on this tragic story, a critical question emerges: How can our systems be strengthened to prevent such fraud and protect individuals from the devastating impact of financial crimes? This story challenges us to think about the safeguards needed to ensure that justice prevails and that fraudsters cannot so easily exploit vulnerabilities.
-The TanTeam Editorial
