Toronto is expanding a health-care and housing initiative that will create approximately 200 new supportive homes for people experiencing homelessness and complex health needs.

The Government of Canada, the City of Toronto and University Health Network (UHN) announced the expansion on October 1, building on the social-medicine model developed through Dunn House in Parkdale.

The first of three new sites is planned near Toronto Western Hospital and will provide approximately 80 deeply affordable supportive homes. Two additional locations are expected to be identified near the hospital.

The federal government is investing more than $25 million through Build Canada Homes. The City of Toronto is proposing more than $19 million in funding and financial incentives, subject to council approval, while the UHN Foundation is contributing $20 million.

The initiative connects housing with health services for people who face complex health and social challenges. Officials say the approach is intended to improve housing stability while reducing reliance on emergency departments and acute-care services.

Data from the existing Dunn House model showed a 52% reduction in emergency department visits and a 79% reduction in hospital bed days during its first year, alongside an estimated $2 million in health-care cost savings.

Construction of the new Spring House project is expected to begin later in 2026, adding another 54 supportive studio homes for seniors and older adults experiencing chronic homelessness.