A new incentive program designed to add as many as 20,000 new purpose-built rental housing units to the City of Toronto — including 7,000 through a municipally-funded first phase — is being scrutinized by development sector stakeholders, many of whom are wary that it doesn’t have the legs to make a meaningful impact.

Made public at the end of October and approved at Wednesday’s City Council meeting in a 23-1 vote, the program is called the Purpose-built Rental Homes Incentives Stream and, at a high level, it pairs qualifying projects with certain perks, including “an indefinite deferral” of development charges (so long as they remain rental in tenure), a “recommended” property tax reduction of 15% for 35 years, and foregone taxes and fees for affordable rental units.