Item - 2026.PH28.2

The Executive Director, Development Review recommends that:

1. City Council amend the Official Plan for the lands municipally known as 21 Windermere Avenue substantially in accordance with the draft Official Plan Amendment included as Attachment 5 to this report.

2. City Council amend City of Toronto Zoning By-law 569-2013 for the lands municipally known as 21 Windermere Avenue substantially in accordance with the draft Zoning By-law Amendment included as Attachment 6 to this report.

3. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Official Plan Amendment and draft Zoning By-law Amendment as may be required.

4. City Council request the General Manager, Transportation Services, to review and report back on the feasibility of amending Schedule B of the City of Toronto Municipal Code Chapter 925, Permit Parking, to exclude the development located at 21 Windermere Avenue from Permit Parking.

This report recommends approval of the Toronto Builds application to amend the Official Plan and Zoning By-law to permit two mixed use buildings of 35 and 20 storeys with 649 residential units, including 154 rent-geared-to-income rental replacement units. The development incorporates retail and community uses at grade, publicly-accessible spaces, indoor and outdoor amenity space, and shared pick-up and drop-off facilities.

 On May 21 and 22, 2025, City Council adopted item PH21.4 “Toronto Builds – A Policy Framework to Build More Affordable Rental Homes on Public Land” to include a new policy framework to harmonize the development of communities on public land.

Swansea Mews was identified as a Toronto Builds site. The City's financial incentives include exemptions from development charges, building permit fees, and parkland dedication, as well as property taxes for municipal and school purposes for the duration of affordability starting from occupancy for all affordable and rent controlled homes. In addition to the incentives for affordable and rent controlled homes, the full development is eligible for waivers of parkland dedication fees and community benefits contribution charges as approved by City Council on July 23 and 24, 2025 in item EX25, “Building Faster: Streamlining Housing Delivery and Strengthening the City’s Development Capacity” which included direction to exempt Toronto Builds projects from these fees.

These incentives are not a direct capital payment as they represent the forgiveness of City levies and charges and are thus foregone revenue to the City.

Estimates of financial incentives to be provided to Swansea Mews via Toronto Builds and the Rental Housing Supply Program are shown in Table 1. The site will have a total of 649 units, of which 154 will be replacement social housing units, 42 will be net-new affordable units, and 453 net-new rent-controlled market units for a period of 99 years.

The Housing Development Office provided the financial impacts information for this report. The Deputy City Manager and Chief Financial Officer have reviewed this Report and agree with the financial impact information.

Table 1. Estimated financial incentives provided to Swansea Mews

*Calculated using 2025 development charge rates for affordable units only

**Includes estimated 2026 parkland dedication fees, community benefits charges, and 2025 development charges.

^Calculated using 2025 property tax rates.

TCHC and City staff will report back to TCHC's Board and City Council in 2026 with further details on the financial impact of the Swansea Mews development. City staff have been working with and will continue to work with TCHC staff to explore third party sources of funds, including funding and financing from other orders of government to support the revitalization efforts. Such options include low-interest financing though CMHC's Affordable Housing Fund and financing opportunities through Build Canada Homes, the federal government's new affordable housing agency. A funding request for the Swansea Mews project was included as part of the TCHC envelope of projects submitted by the City of Toronto to Build Canada Homes in December 2025.

Financial impacts in 2027 and beyond will be included in TCHC's Development Capital Budget submission to the City, and funding will be determined through the City's annual budget process.