The federal government, along with the Regional Municipality of Durham, has announced more than $53 million in combined funding to build 104 new transitional and supportive housing beds and to retrofit the 45 existing emergency beds already operating at 1635 Dundas Street East in Whitby.

The first phase of the project transformed a former long-term care home into a space that offers stability and support for individuals experiencing homelessness, including services for those facing alcohol and drug addictions.

Since the building opened in March 2024, it has operated at or near capacity.

This latest project is the second phase of work at the site. The plans for phase 2 call for the second and third floors of the building to become supportive, transitional housing units, with a total of 104 beds and wraparounds supports to help people transition from homelessness into permanent housing. It will include addictions recovery, palliative care support for homeless seniors, a medical clinic, as well as administrative and service spaces.

“Our government is determined to help communities strengthen their capacity to develop local solutions to housing challenges and homelessness. Supporting 1635 Dundas Street is one of the ways we do that,” said federal Housing Minister Gregor Robertson.

Funding provided for the project included $40 million from the federal government, through the National Housing Strategy’s Affordable Housing Fund, and $13.7 million from the Regional Municipality of Durham.

“The low barrier shelter at 1635 Dundas Street East has been a lifeline for individuals experiencing unsheltered homelessness — a safe place to sleep, eat and take steps toward housing,” said John Henry, Regional Chair and CEO, the Regional Municipality of Durham. “Investment through the Affordable Housing Fund will transform the second and third floors into transitional and supportive housing where clients can move through the housing continuum, improve quality of life and increase opportunities for success. This project shows what we can achieve when different levels of government work together with compassion and purpose.”

As of September 2025, the Government of Canada has committed $13.72 billion to support the creation of over 54,100 units and the repair of over 174,600 units through the Affordable Housing Fund.