The District Municipality of Muskoka has received ten responses from developers and non-profit organizations to its recent Request for Information (RFI) on head lease opportunities for affordable housing—an unexpectedly strong level of interest that could shape the next phase of the District’s housing strategy.
Presented to the Community and Planning Services Committee on November 20, the findings outline a diverse mix of proposals. Six submissions came from local developers, two from out-of-region builders, and two from non-profit housing providers. Respondents offered a broad range of potential head lease structures, including leasing full buildings, individual floors, or scattered units within existing developments.
A head lease model would see the District lease units directly from landlords and sublet them at below-market rents to eligible tenants, creating new affordable options without requiring full ownership or construction of new buildings. The District previously attempted a similar process in 2021 but received no submissions at that time. With renewed interest from the development community—and growing pressure for affordable housing—staff opted to revisit the approach.
This year’s RFI, which ran from July 15 to October 15 following an extended deadline, was intentionally open-ended. Staff emphasized that the goal was to gather ideas and perspectives to help shape a future Request for Proposals (RFP). Staff said the variety of submissions provided useful insight, though few clear trends emerged due to the wide range of proposed arrangements.
Committee members pressed staff on the need to move quickly. Councillor Nancy Alcock noted that “time is of the essence,” warning the District could lose developer interest if the process slows. Councillor Don Smith requested an update as early as December.
Staff confirmed they will return with additional analysis next month and aim to bring a draft RFP forward early in 2026.
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