Ontario Using Government Lands to Build Long-Term Care Homes in Hamilton

July 31, 2025

Former hospital site will host two new long-term care homes and additional housing

HAMILTON — The Ontario government is supporting the construction of modern, safe and comfortable long-term care homes, housing and other critical infrastructure by selling the former Hamilton Psychiatric Hospital through the Surplus Lands program. The proceeds will be used to develop two long-term care homes with 512 new long-term care beds as well as more than 1,000 additional homes.

“As our province continues to age, it is critical we protect Ontario and our seniors by building the long-term care capacity needed to meet increasing demand,” said Natalia Kusendova-Bashta, Minister of Long-Term Care. “By selling unused provincial lands in the GTHA, we are finding innovative solutions where they are needed most. When the Hamilton site is fully developed, 512 long-term care residents will have a modern and comfortable place to call home.”

The Surplus Lands program also allows for excess lands to be repurposed for the benefit of Ontario families, including for housing, health care and educational facilities. Once fully developed, the Hamilton site will consist of:

  • 512 new long-term care beds through the construction of two 256-bed homes;
  • 41 affordable housing units and 270 seniors’ housing units;
  • 832 market housing units;
  • 7 acres of land dedicated to Mohawk College;
  • 7 acres of land for municipal conservation use; and
  • The preservation and conversion of Century Manor, local heritage building, into housing.

This innovative approach to building new long-term care homes will help address the increasing demand for long-term care beds and housing in large urban areas, where available land is scarce and costly.

“Our government is streamlining the process for selling underused provincial properties to save taxpayer dollars and accelerate the delivery of key infrastructure priorities, like building more housing and long-term care beds, and creating more jobs,” said Kinga Surma, Minister of Infrastructure. “The sale of the former Hamilton Psychiatric Hospital will enable 512 much-needed long-term care beds and more than 1,100 mixed housing units across the city of Hamilton, giving more residents and families the access to critical care they need and deserve.”

The program is part of the government’s commitment to build 58,000 new and upgraded long-term care beds across the province, as outlined in the 2025 Ontario Budget: A Plan to Protect Ontario. The government is fixing long-term care to ensure Ontarians get the quality of care and quality of life they need and deserve. The plan to improve care is built on four pillars: staffing and care; quality and enforcement; building modern, safe and comfortable homes; and connecting seniors with faster, more convenient access to the services they need.

Quick Facts

  • The homes will be located at 290 Fennell Ave West in Hamilton and will be operated by Schlegel Villages Inc.
  • As of July 2025, 148 projects representing a total of 24,101 new and redeveloped beds are completed, under construction, or have ministry approval to construct.
  • The Construction Funding Subsidy top-up was first introduced in 2022, resulting in the largest construction of long-term care projects the government has achieved in a single year. Eligible projects receive a top-up of $35 per bed, per day, for 25 years, with additional supports for not-for-profits.
  • The government is continuing its ambitious and extensive long-term care construction campaign by introducing the 2025 long-term care capital funding program to build on its historic investment levels.
  • Ontario will also be launching a new construction funding support program to ensure long-term care operators and builders have additional flexibility and support to continue the province’s historic level of construction. Building more modern, safe and comfortable homes for our residents is part of the Government of Ontario’s Fixing Long-Term Care Act, 2021.
  • The province is taking innovative steps to get long-term care homes built, including modernizing its funding model, selling unused lands with the requirement that long-term care homes be built on portions of the properties, and leveraging hospital-owned land to build urgently needed homes in large urban areas.