Toronto is moving forward with the development of 2,000 market-rent and affordable rental housing units, through a provincial agreement to unlock surplus land across the city.

“There are far too many people who need to live in this city, who we need to have live in this city, who we want to live in the city, who would have an income that wouldn’t allow them to live affordably in this city,” said Mayor John Tory.

The rental properties will be built on two lots in the West Don Lands, as well as the site of a multi-level parking lot on Grosvenor St. and the old provincial coroner’s office, on Grenville St.

Tory’s remarks were made during a press conference with provincial Housing Minister Peter Milczyn, at one future site, near St. Lawrence Market, on Wednesday morning.

The land will go up for sale on Thursday and developers will be invited to submit proposals, with the understanding the property must be used for affordable and market rent housing.

The province will profit from the sale but the expectation is the land will sell for less than it would if it was put on the market with no restrictions, said Milczyn.

They hope to have the first round of proposals within a month and work could begin on one site as early as next spring, he said. The decision to unlock the property was announced in late April.

Milczyn said at least 30 per cent or 600 rental homes will be affordable. In Toronto, affordable is defined as rental units costing at or below the average rent across the city.

The remaining 1,400 will be at the “low end” of market rent, or the average rent for similar-sized properties across the city.

“So all of these units, compared to some of the other buildings that are around us, will be more affordable than you would otherwise see in the city,” he said.

At least one in 10 of the new units will be designed for large families, he said.

“Families should be able to live in these communities,” said Milczyn, who said more announcements about surplus provincial lands are coming.

The city will be waiving $27.9 million in fees, charges and property taxes to support the development of the 600 affordable units, through the city’s Open Door Program.

Kenneth Hale, director of legal service with the Advocacy Centre for Tenants Ontario, said one concern is according to federal and provincial agreements, affordable housing is defined as less or equal to 80 per cent of market rent.

“Eighty per cent of Toronto rent is not affordable to the people who need housing most in this city,” said Hale, particularly people receiving social assistance.

“There doesn’t seem to be any clear programs that tie future subsidies to these developments,” said Hale.

“When they say affordable housing who is it going to be affordable to?”

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In Toronto, more than 181,000 people are on waitlists for affordable housing.

Tory, on Wednesday, said the city has “great plans to do more” and people should “stay tuned for us making more land available,” for affordable housing.

“I can assure you from our end that we are doing everything we can to move these projects forward quickly,” said Tory.

Councillor Ana Bailao, the city’s housing advocate, said the development will “serve an important need,” by providing safe, affordable and long-term housing for families and workers in the downtown.

Tory and Bailao praised late councillor Pam McConnell, who passed away in July and was devoted to social justice and the creation of affordable housing. Bailao said McConnell’s vision of an inclusive city was a powerful reminder that equality is a shared responsibility.

Next week, Bailao will be presenting information on the creation of an additional 298 units, in seven developments, run by not-for-profit, co-operative and private sector organizations, to the city’s affordable housing committee.

The city will be investing a further $22.4 million in “capital funding and fees, charges and property tax relief,” also through the Open Door program, said Bailao, in a release.

The city will, for the first time, meet and exceed an annual target to approve more than 1,000 affordable units annually, she said.

On Monday, Tory and Milczyn announced that Toronto will get $90 million in provincial funding, over three years, to help end chronic homelessness.

Those funds come from a $200 million commitment in the last budget, to be spent over three years, and earmarked to reduce homelessness across Ontario.

Other municipalities will receive details on funding in the fall, said Milczyn.