The high art deal: building Ontario fund creates permanent affordable units
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Overview
Robins Appleby and John Fox were pleased to assist the Building Ontario Fund and its lead lawyers, Oslers, to create up to 550 long-term affordable rental housing in the GTA. Building Ontario Fund is partnering with High Art Capital to establish a fund to convert unsold condominium inventory into rental housing, by contributing $300 million to the fund. The fund could acquire up to 2200 inventory condominium units in the GTA of which a minimum of 25% will be maintained as affordable rental housing units. John’s involvement was to provide advice in structuring the affordable housing component of the transaction to ensure long-term affordability.
The transaction is the first of its kind and is notable for several reasons. First, it is an opportunistic investment, converting further unsold condominium units into rental housing while such supply exists. Second, the long-term benefit of the affordable units is not subject to a fixed affordability period, as is common with many government programs; instead, the units will remain affordable in perpetuity. Minister of Housing Rob Flack noted in reference to the transaction: “An integral step towards protecting Ontario’s economy is ensuring everyone in our province has a safe and affordable place to live”. We agree. Robins Appleby is pleased to have participated in a transaction that moves us closer to that goal.
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