In response to the growing number of people actively experiencing homelessness in Toronto, the City has purchased the property at 65 Dundas St. E. — formerly the Bond Place Hotel — to provide permanent affordable homes. 

The 19-storey tower near Yonge-Dundas Square was initially leased by the City during lockdowns to help provide additional space for physical distancing and safe indoor space for people living outside. 

Now, the property is being renovated to offer homes for a range of incomes, including "deeply affordable homes with supports," studio and one-bedroom apartments, and 15 per cent accessible apartments (with roll-in showers, grab bars, and barrier-free paths). 

The building will also offer amenities like shared laundry, a dining area, and communal space, as well as multiple programming and tenant support spaces revolving around mental health care, education, employment opportunities, life skills training, and substance use services.

According to the City, almost half of Toronto renter households spend more than 30 per cent of their income on rent, with 23 per cent spending more than 50 per cent of their income on housing. 

As of 2016, approximately 38 per cent of Toronto households earned less than $50,000 per year, making studio apartments unaffordable for nearly 40 per cent of households based on current market rental rates. 

The temporary shelter program at the building has been gradually closing in phases since September 2022 to enable renovations to take place while also maintaining shelter capacity.

The City says staff on site will continue to work with all shelter clients to support them to move into housing or to another shelter with support.

The first phase of construction on the basement, lobby, and floors two through seven is expected to be completed in spring 2024. The second phase on the remaining floors will begin once floors two through seven are completed. 

Once the renovations are finished, there will be nearly 280 permanent affordable and support homes for people with a range of incomes. Tenants will pay no more than 30 per cent of their income on rent or the shelter allowance of their income assistance, whichever is greater. 

These permanent homes are funded as part of Phase 2 of the Government of Canada's Rapid Housing Initiative (RHI), which is providing $1.5 billion in grant funding nationally.