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The Kensington Market Community Land Trust

The Impact of Mixed-use Community Land Trust Acquisitions in Facilitating Affordable Housing

Kensington Market is a culturally diverse, mixed-income neighbourhood in downtown Toronto. It has traditionally been accessible to newcomers and low-income tenants. Like many downtown Toronto neighbourhoods, however, it is under pressure due to real estate development and declining affordability.

In June 2021, the Kensington Market Community Land Trust (KMCLT) acquired 54 Kensington Avenue to offer as affordable housing. That experience helped KMCLT develop expertise and tools to tackle community housing asset acquisition, management and stewardship. In this demonstration project, they will share those experiences, lessons learned and tools. This will help other housing groups develop organizational readiness, access information and lessons, and use tools and resources for their projects.

3 Key Innovations

  • ✔

    54 Kensington Avenue is a mixed-use building, which offers unique income and tax considerations over 100% residential buildings.

  • ✔

    The project demonstrates how prior tenant rights organizing and direct action in 54 Kensington Avenue contributed to the building’s acquisition.

  • ✔

    The building’s purchase was made possible by municipal partnership and financial contribution towards property tax reductions and the purchase price.

Project scope and expected outcomes

A building purchase made possible by tenant action, community voluntary efforts and a strong municipal partnership

Community land trusts (CLTs) are non-profit corporations created to acquire and hold land for a community. The land is perpetually held in trust to help provide access for community use, such as affordable housing. CLTs are membership-based organizations, governed by an elected board of directors, and often made of community members and non-profit organizations.

The acquisition of 54 Kensington Avenue by KMCLT reflects that community basis. The opportunity to purchase the building followed successful tenant action against mass renoviction attempts by the former owner. This was followed by community voluntary efforts, supported by hired consultants and generous experts from the CLT sector. A strong municipal partnership with the City of Toronto helped make the purchase possible.

KMCLT is currently renovating and operating 12 units of affordable housing at 54 Kensington Avenue. This will help to provide much-needed community-owned affordable housing in Kensington Market.

Several unique innovations that may be applicable across Canada

The acquisition of 54 Kensington Avenue features several unique innovations that may have a broader application across Canada. KMCLT is eager to analyze those factors and share them more widely with support from the National Housing Strategy (NHS) Demonstrations Initiative.

  • Mixed-use building with independent commercial tenants. 54 Kensington Avenue is mixed-use affordable housing, with 5 small-scale commercial units. Commercial rents may help subsidize or support affordability within a CLT. Mixed-use buildings also have unique income and tax implications, and they help preserve the character of many working-class neighbourhoods. KMCLT wants to add these factors to the national CLT knowledge base.
  • Tenant direct action. How CLTs participate in tenant rights organizing and education varies greatly across North America. Some prefer to keep direct action at arm’s length, but direct tenant action made the purchase of 54 Kensington Avenue possible. KMCLT wants to discuss this approach to learn more about the potential of tenant organizing strategies in other housing projects.
  • Significant municipal partnership. A local city councilor’s leadership helped KMCLT collaborate with the City of Toronto to purchase 54 Kensington Avenue. The city provided a large portion of the purchase price as a capital grant in the form of a forgivable loan. Policy changes also allowed 54 Kensington Avenue to benefit from a property tax exemption, something previously believed to be impossible.
  • Overlapping boundaries and solidarity with Chinatown. Kensington Market and neighbouring Chinatown share many similarities and challenges. This makes cooperation between the two communities important. KMCLT believes they can and should work in solidarity rather than competition. That is a lesson that is relevant to many other downtown neighbourhood groups in Canada.
  • Successful knowledge transfer with Parkdale Neighbourhood Land Trust. Parkdale’s Neighbourhood Land Trust (NLT) has developed a proven model of asset acquisition and stewardship for community housing. Their rooming house preservation work in the nearby neighbourhood of Parkdale was critically important to KMCLT. Direct knowledge transfer like this helps other groups with complex acquisitions and enables training for board members and staff.

Sharing the story of 54 Kensington Avenue online and through public events

The project’s first step will be to hire KMCLT’s first employee to serve as the demonstration’s primary project manager. Documentation and an outreach strategy will be developed, and key participants in the purchase of 54 Kensington Avenue will be interviewed.

KMCLT will then share its story online and through public events and tours. This includes a webinar and community forum featuring a tenant speaker for residents to learn about KMCLT and 54 Kensington. KMCLT will also approach national partners to distribute the study to audiences outside the housing sector.

A plan to connect with other CLT’s and organizations working in a mixed-use context will be finalized during the project. This includes providing support to the planned Chinatown CLT or other organizations planning CLT solutions for affordable housing.

Helping new and emerging groups with information, tools and resources

In the short-term, the demonstration will help provide support to start-up CLTs. KMCLT’s first employee will expand the organization’s ability to respond to requests for info and support. This will help new groups develop their own organizational readiness, and it will provide them with important info, tools and resources. This includes things to consider when acquiring property for affordable housing.

Over the longer term, the case study will provide information about CLT’s to a range of sectors. This includes the housing finance, government and nonprofit sectors. By creating a compelling case, KMCLT hopes to help mortgage advisors, property management companies and planning staff understand the CLT model. In time, the project may help plant the seeds for an infrastructure of established and mature community-governed CLTs.

Program: NHS Demonstrations Initiative

Demonstration Title: The Impact of Mixed-use Community Land Trust Acquisitions in Facilitating Affordable Housing

Lead organization: The Kensington Market Community Land Trust

Collaborators and Partners:

  • Kensington Market Community Land Trust
  • School of Cities
  • Affordable Housing Challenge Project

Location: Toronto, Ontario

Get More Information:
Email Innovation-Research@cmhc.ca or visit our website to learn more about the initiatives under the National Housing Strategy.

Feeling inspired?

See how you can apply for a Demonstrations Initiative grant.

Date Published: February 16, 2022
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