District Seeking Input on Head Lease Arrangements

The Muskoka Housing Task Force 2.0 (MHTF 2.0) is actively working to find solutions and make recommendations to District Council to assist with solving the housing crisis in Muskoka. The MHTF 2.0 has discussed head leases as a potential option to contribute to the development of affordable housing, and the District is seeking to explore this model further. This is part of our broader commitment to creating Housing for Everyone in Muskoka.

What is a head lease?

A head lease is a commercial leasing agreement between a landlord and a tenant (also called a head tenant or lessee) where the head tenant is given the right to sublease the premises to subtenants. The head tenant remains contractually responsible for the obligations in the head lease, even if parts of the property are subleased.

How can head leases help increase affordable housing?

In the context of affordable housing, the District could enter into a head lease for part or all of a building at a set rent and then could rent the units to individuals and households at lower/subsidized rents as a way to create affordable units.

What is the District looking to accomplish?

The District is in the preliminary stages of exploring potential head lease arrangements and has released a Request for Information (RFI) soliciting input from the development community on potential models, structures, and criteria for head lease arrangements that could work for them. The information received is intended to inform a further future procurement process (i.e. a Request for Proposals). Through this future RFP, the District hopes to provide an opportunity to develop head lease arrangement(s) in Muskoka that are reasonable and customized to suit the region’s rental market and to provide greater access to affordable and attainable stock for low-to-moderate income households.

How can the RFI be accessed and when is the submission deadline?

The RFI has been posted today to Biddingo and the District's website. The deadline to submit a response is September 15, 2025 at 12:00 Noon local time.

Help spread the word!

If you know of a developer who might be interested in contributing to the discussion on head leases, please share this opportunity with them.

Thank you for being part of the efforts to expand housing options in Muskoka, and for supporting Housing for Everyone.