Ottawa and Toronto fund sewer upgrade to unlock 63,000 Downsview homes
Federal and municipal funds will expand the Black Creek sewer, enabling up to 63,000 new homes in Downsview. Build Canada Homes will pilot modular units with at least 40% affordable.
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By Torontoer Staff
The federal and City of Toronto governments announced a joint investment to expand the Black Creek trunk sewer, clearing the way for up to 63,000 new homes in Downsview and surrounding areas. The federal contribution, delivered through the Canada Housing Infrastructure Fund, will be matched by a municipal investment to upgrade ageing infrastructure that has constrained development.
Ottawa will provide up to $283 million through CHIF, and Toronto will contribute more than $425 million, to fund 17 kilometres of new sewer capacity. Officials say the work will reduce flood risk, protect water quality and enable tens of thousands of new housing units and supporting jobs.
What the investment covers
The Black Creek sanitary trunk was built in the 1960s and today serves more than 350,000 residents. Growth pressures have contributed to flooding and delayed approvals for new development. The announced funding will pay for 17 kilometres of new trunk sewer infrastructure to increase capacity and resilience.
Federal and municipal officials estimate the upgrade will support up to 130,400 additional residents and more than 65,000 jobs once development proceeds, while reducing the risk of basement flooding and helping to protect local water quality.
Build Canada Homes and the Arbo Downsview pilot
The announcement also confirmed the first project from Build Canada Homes, a new federal agency that will deliver factory-built housing. The pilot at Arbo Downsview will include 540 homes using prefabrication, modular construction and mass timber techniques. Officials said at least 40 percent of those units will be designated as affordable, including options targeted to middle class families.
The modular and mass timber approaches are intended to speed construction and lower some costs compared with traditional on-site builds. The federal government plans further measures in Budget 2025 aimed at lowering builder costs and accelerating construction nationwide.
Today’s investments in Toronto’s critical housing-enabling infrastructure will help deliver urgently needed homes for Canadians who need them. But this is just the beginning. Our full, ambitious plan — to be detailed in Budget 2025 — will lower costs for builders, catalyse private capital investments, and double the pace of homebuilding across Canada.
François-Philippe Champagne, Minister of Finance and National Revenue
Why the sewer upgrade matters for housing
Capacity constraints in trunk sewer systems can halt development approvals even when land and zoning are in place. By increasing sanitary capacity in Black Creek, the city aims to clear a major technical barrier to higher-density residential projects across Downsview and nearby neighbourhoods. That in turn should speed permitting and construction for projects that have been stalled or scaled back.
Planners and developers will still need to complete site-level approvals, community consultations and construction permitting, but the trunk upgrade removes a significant infrastructure limitation that has long slowed growth in parts of northwest Toronto.
Key numbers and next steps
- Up to $283 million from the federal Canada Housing Infrastructure Fund
- More than $425 million from the City of Toronto
- 17 kilometres of new trunk sewer infrastructure
- Potential to enable up to 63,000 new homes in Downsview and adjacent areas
- Arbo Downsview pilot: 540 homes, at least 40 percent affordable
- Black Creek currently serves over 350,000 residents; upgrades expected to support 130,400 additional residents and over 65,000 jobs
Officials did not provide a firm completion date for the sewer works or for the 63,000-homes figure to be realised. Budget 2025, expected in early November, will detail further federal steps to lower builder costs and attract private investment to increase the pace of homebuilding.
What to watch next
Watch for project timelines from the City of Toronto and technical details from Build Canada Homes. The pilot at Arbo Downsview will offer an early signal of whether modular and mass timber production can reliably deliver units at scale and with the affordability targets the governments have set.
This investment is an initial, infrastructure-focused step to unlock housing capacity in a growth area of the city. Expect follow-up announcements tied to Budget 2025 and municipal permitting milestones that will determine how quickly new homes appear on the ground.
housingTorontoinfrastructureaffordable housingDownsview
