$15,000 in forgivable loans available for property developers to build apartments near London transit

A stock image of a building restoration project (hanohiki/Getty Images/iStockphoto)

A new financial incentive being offered by the City of London hopes to encourage the densification of housing near transit-accessible areas.

The Transit Oriented Development (TOD) Per-Unit Forgivable Loan Program offers $15,000 per residential unit, encouraging mixed use and residential development. The hope is that this funding will ccelerate the construction of new housing, or an office-to-residential conversion, near major transit routes - like the downtown core, and rapid transit corridors.

“There’s an urgent need for new housing options across London, especially in areas well-served by public transit,” said Mayor Josh Morgan. “We want to see new homes built near transit, where people can live close to work, school, and the services that support a strong, vibrant city.”

The money is offered as a loan, which is issued once requirements like permits, and good property tax standing are met, and that loan is forgiven upon passing final building inspection. There is a maximum amount per building, and funding is subject to availability.

“This program is part of the City’s broader strategy through the Federal Housing Accelerator Fund to promote sustainable urban development, increase housing supply, and support intensified land use near major transit routes,” said Deputy City Manager of Housing and Community Growth Scott Mathers. “It’s about building more homes, faster, in the right places. By targeting areas with strong transit connections, we’re not only addressing the housing crisis but also supporting our climate and mobility goals.”

Full details on the program are available on the City of London’s website.