Wondering how to achieve affordable housing while supporting sustainable infrastructure design? The new Valhalla Village in Toronto is building the blueprint.
To address the urgent need for affordable housing and sustainable infrastructure, the Valhalla Village project team achieved these ambitious goals in tandem, setting a new standard for equitable residential development. Developer KingSett Capital partnered with Geosource Energy, a North American leader in geothermal heating and cooling systems, to achieve these goals.
Construction on Valhalla Village, an affordable housing development at Bloor and the East Mall in Toronto, commenced in early 2024. Financed through the federal Apartment Loan Construction Program and the City of Toronto’s Open Door Program, the project will deliver 172 affordable rental units alongside nearly 1,000 market-rate rentals to Toronto’s west end in 2026.
Designed with the future in mind, Valhalla Village has achieved Zero Carbon Building – Design™ certification from the Canada Green Building Council (CAGBC), with its 145-borehole geothermal system – designed, constructed and installed by Geosource – ensuring the building remains net-zero carbon.
Opting for geothermal energy from the outset at Valhalla Village aligns with Canada’s 2050 net-zero emissions target, while also qualifying the project for federal loans and municipal incentives to offset upfront costs and support affordable housing. Credit: Valhalla Village.
The KingSett Capital project team also includes BDP Quadrangle, the lead architect, and Reliance Construction Group, which will lead the construction of the project, as well as Purpose Building Inc. which provided sustainable design services to the development.
Valhalla Village will be the first ground-up, purpose-built housing development for the KingSett Affordable Housing Fund. Phase 1 of the development will comprise a total of 494 units, including 172 affordable units. Initial occupancy for Phase 1 of Valhalla Village is expected in the third quarter of 2026.
“Breaking ground at Valhalla Village is a critical first step in KingSett’s ambitious goal of developing a portfolio of affordable housing that leads the industry in terms of depth, product design, and sustainability,” said Jeff Thomas, head of Development at KingSett Capital during the start of construction. “The location and scale of Valhalla Village presents a compelling opportunity to create purpose-built affordable housing at a critical time for the local community. We are very excited to be moving ahead with this extraordinary development.”
Geothermal heating and cooling systems ensure long-term energy stability, as a key solution for creating decarbonized and cost-effective housing. Geosource Energy’s technology can be applied and scaled to fit several settings, including multi-residential, commercial, institutional, and industrial buildings, both for new developments and retrofit applications. Credit: Geosource Energy.
Stanley Reitsma, CEO of Geosource Energy, was integral in the design-build process at Valhalla Village and is excited about how geothermal energy in shaping a sustainable and equitable housing future.
“As developers strive to decarbonize buildings, geothermal systems play a crucial role in reducing or eliminating carbon emissions,” said Reitsma. “These systems harness a local, renewable resource—right under our feet and consistently available. With their high efficiency, geothermal systems eliminate the need for on-site combustion, enhancing sustainability while providing a reliable source for heating and cooling. Geosource has installed close to 400 geothermal systems over the past 20 years.”
The Valhalla Village project will also include a community agency space and public park, part of a second phase to be constructed at a later date.
As cities grow and demand for affordable housing increases, geothermal energy stands out as a crucial component in building smarter, greener, and more affordable urban landscapes.
Featured image caption: Phase 1 of the geothermal-powered Valhalla Village includes a 30 and 11-storey mixed-use residential, retail and community space complex in Toronto’s Eatonville-Bloorlea neighbourhood. Credit: Geosource Energy.
