Toronto's Yorkville and Chinatown neighbourhoods will soon be home to over 300 new affordable rental units.

On Thursday, the City announced that it had purchased two buildings through its Rapid Housing Initiative (RHI), which will house 334 affordable homes with supportive services for their residents. Occupancy is slated for later this year.

According to the City, the first two locations of the buildings are 877 Yonge Street and 222 Spadina Avenue. Both buildings -- which will provide affordable housing for a minimum of 99 years -- will be dedicated to women, Indigenous residents, racialized groups, seniors, people with disabilities and people who are experiencing or at risk of homelessness and will offer a variety of support services to the tenants.

“We have remained committed to increasing the number of affordable housing options in Toronto and ensuring that we are providing support to those who need it the most,” said Mayor John Tory. “The housing we are announcing today will create a more well-rounded, full-service support system for vulnerable residents in our city.”

READ: Toronto Named 5th Most ‘Severely Unaffordable’ City in the World: Report

One of the buildings -- 877 Yonge Street in Yorkville -- was a 15-storey former retirement residence that ceased operations in 2019, that the City purchased for $94.9 million. It will be converted into studio and one-bedroom apartments with their own bathroom and kitchen with the capacity to house around 250 people.

The building will include amenities such as shared laundry, a communal area and programming space. Experienced staff will be in the building 24/7 to connect residents to a range of wrap-around supports and services including health care, health-related services, and community-based programs.

According to the City, residents will move into the building in two phases, with the first 127 homes anticipated to be ready for May 2021 and the remainder anticipated to be ready for occupancy in December 2021.

The second building, at 222 Spadina Avenue in Chinatown, was purchased for $22.3 million and is a three-floor former hotel in a multi-use building, that will provide new homes for approximately 84 people. The building will have studio, one-bedroom and two-bedroom apartments with their own bathrooms and kitchens.

The building will include amenities such as shared laundry, a communal area, and a programming space. A building operator and service provider will be selected through a Request for Proposal (RFP) process and will be in place before tenants move in. Occupancy is anticipated to take place in December 2021.

"To truly tackle the affordable housing crisis in our city, we must take bold steps – like acquiring a private hotel in our downtown core and turning it into affordable housing units with fully-integrated supports," said Councillor Joe Cressy (Spadina-Fort York), Chair of the Board of Health.

"The City of Toronto, in partnership with the Federal Government, is taking action to create supportive housing that meets people's needs and provides safe and secure homes that people can afford. This is how we invest in our residents, our community, and our city."

This announcement comes on the heels of the Province of Ontario confirming $15.4 million in operating funding for 2021 dedicated to supportive housing in Toronto.

With this new funding, the City will be able to fully fund support services for 1,098 homes, which will be ready for occupancy this year, including the homes created at 877 Yonge Street and 222 Spadina Avenue.