Using tax increment financing to develop affordable housing in Toronto

The City of Toronto’s ten year Housing Plan established an aggressive target to develop 40,000 affordable housing units. A multitude of policies and tools will be required to achieve this goal. This paper examines the potential use of Tax Increment Financing (TIF) to help develop affordable housing units. A critical examination of Portland, Oregon and the State of Minnesota is undertaken to provide precedence for how the Province of Ontario and the City of Toronto could use TIF to achieve housing targets. This paper provides evidence to suggest TIF could be an effective tool in the City of Toronto and argues for the Province to provide regulations for its use.

Key words: Housing; Economic Development; Toronto; Tax Increment Financing; Policy