The Kensington Market Community Land Trust (KMCLT) has made significant strides in its mission to support local small businesses and provide affordable housing by acquiring its second building at 380 Spadina Avenue. So nowadays KMCLT is working with tenants to try to lower residents’ rents. This acquisition takes a step towards protecting the vibrant cultural and architectural heritage of the Kensington Market community. The organization aims to ensure that land remains dedicated to community needs while protecting affordability in an area increasingly threatened by rising rents.
The newly renovated building includes one commercial space. It has two large one-bedroom apartments, each about 950 square feet. The KMCLT plans to maintain rents for these apartments below $1,000. This approach will bring them within reach for households of around $47,000 per year. This effort comes at an important time. Currently, the average monthly rent for an unfurnished, one-bedroom apartment in Toronto is over $2,150.
KMCLT’s hopeful saga started with a big leap of faith in the form of a successful fundraising campaign that exceeded a million dollars from 170 different investors. The organization was bolstered by a deep commitment from an anonymous private donor. It received $400,000 in funding through the City of Toronto’s Multi-Unit Residential Acquisition (MURA) Program towards the building’s acquisition.
Zack Bradley, co-director of KMCLT, said their organization was all in on tackling the affordable housing crisis head on. He underscored the importance of not losing sight of those with urgent needs for housing. He highlighted future tenants, such as single mothers, seniors and artists displaced from their communities.
“When we get places like this, if we set the rent say under a thousand dollars, then your max income that will allow for you to rent this place will be around $47,000. So we’re trying to find people who are in desperate need of housing in this area.” – Zack Bradley
Bradley pointed out that existing tenants would experience a rent increase of nearly $500 a month. This much-needed change would provide some welcome relief amid today’s hyper-competitive rental market.
Angela Ho, KMCLT’s Community Investment Manager, brought home the difficulties her organization has experienced. Since acquiring its first building in 2021, obtaining financing for new properties has become a challenge. She talked about the need for creative financing strategies that let KMCLT reduce rental rates for residents.
“If you were to take out a regular mortgage with higher interest rates, often those costs get passed on to the tenants to make the numbers work. So our financing approach gives us room to reduce the rents.” – Angela Ho
The commercial tenant located downstairs, Uncle Jacob’s Cycles, is a long-standing business that has served the Kensington area for decades. KMCLT’s mission goes beyond affordable housing. It works to protect a diverse commercial environment that fosters local entrepreneurship and creativity. Bradley specifically emphasized the need to protect these legacy businesses which face growing external pressures from larger chain competitors.
“We’re seeing so many chains come in, we’re seeing so many people being pushed out. Long-term legacy businesses are closing up shop … we’re losing the diversity and flavour of what was Kensington.” – Zack Bradley
KMCLT is planning to roll out a new community bond program. Their current goal is to raise just over $2 million to buy a third building and continue their mission. The organization is planning to reapply for funding through the City’s MURA program to fund its continued work.
This city official Dianne Saxe, now Ontario’s supportive Environmental Commissioner, admired KMCLT’s leadership and energy and commitment to affordable housing in Kensington Market. She acknowledged her own responsibility to help advance their efforts. She underscored the unique position that these organizations hold and play in the pursuit of affordable housing.
“I’m putting all of my affordable housing money from my entire ward into the Kensington area because of the leadership of the Kensington Market Community Land Trust and their ability to operate these facilities in the long run.” – Dianne Saxe
That’s evident by current tenants’ sentiments of thanks and hopefulness on the direction KMCLT is taking. Many residents expressed their excitement about being part of a community-focused initiative aimed at improving the neighborhood while ensuring their homes remain affordable.
“It’s nice to see an organization like KMCLT take the initiative to preserve Kensington Market. We love living here and we look forward to being part of an organization that is working to improve the neighbourhood.” – Kensington Market Tenants
