Short-Term Rental Enforcement Fund

On this page

• About the Short-Term Rental Enforcement Fund
• Program details
• How to apply
• Applicant guide
• Registration
• Application
• Upcoming webinars
• Frequently asked questions
• Contact us

About the Short-Term Rental Enforcement Fund

Canada needs more long-term housing, and the federal government is taking action to crack down on non-compliant short-term rentals which are keeping homes off the market across the country.

In 2023, the Government of Canada's Fall Economic Statement proposed $50 million over three years, starting in 2024-25, to launch a Short-Term Rental Enforcement Fund (STREF). This commitment was also reiterated in Budget 2024. The STREF is one measure in the whole-of-government approach to addressing housing challenges, as outlined in Canada's Housing Plan.

The STREF aims to limit short-term rentals that take away units from the long-term housing market across the country. The program provides grant funding to municipalities and Indigenous communities with existing strict regulatory regimes to support the local enforcement of short-term rental restrictions in an effort to make more long-term housing units available in Canada.

Program details

In recent years, short-term rental activity has been increasing across Canada, with the loss of long-term  units contributing to the housing shortage. The STREF, delivered through Housing, Infrastructure, and Communities Canada (HICC), is designed to support municipal and Indigenous community enforcement of existing restrictions on short-term rentals.

Funding

The STREF will deliver one-time grant funding through a call for proposals.

The maximum duration of grant agreements for selected projects funded under STREF is until March 31, 2027.

The maximum level of financial support approved per project will not exceed $4.8 million over three years. The minimum funding allocation in year one is $100,000, to ensure applicants with smaller populations can cover the higher costs associated with the planned enforcement and compliance activities in their jurisdiction. 

Eligible applicants

The STREF is an application-based program with eligibility for municipalities (including upper-tier municipalities, which are formed by two or more municipalities within its boundaries) and Indigenous communities with strict regulatory regimes that could have an impact on protecting units in the long-term housing market, and short-term rental activity and related enforcement and compliance challenges (i.e., lack of capacity and data to identify, monitor, and bring into compliance non-compliant short-term rentals).

Applicants need to have an existing strict short-term rental regulatory regime in place defined as including, at minimum:

• An existing principal residence requirement limiting short-term rental operation to principal residences and a licensing system for short-term rental operators;
• An enforcement and compliance program for their short-term rental regulatory regime; and,
• One additional existing regulation from this list:
• Short-term rental licensing/registration process requiring a proof of consent from condo corporation/strata and property owners for a unit to be used as short-term rental
• Spatial rules, quotas or moratoriums to restrict short-term rentals to specific zones, neighbourhoods or blocks, limit the number of units within those zones, neighbourhoods or blocks, as well as suspend or restrict issuing of short-term rental licenses
• Enforcing a night cap on bookings to restrict the maximum number of consecutive days that a unit can be rented and/or the total number of days per year that a unit can be rented as a short-term rental
• Establishing accountability measures for platforms, including mandating short-term rental platforms to obtain a license to operate, to share data with enforcement personnel or to remove non-compliant listings

Note: Only provinces and territories playing a primary role in enforcement of regulations are eligible to apply at the request and on behalf of eligible municipalities.

For full details on eligibility, please refer to the Applicant Guide.

Eligible activities

The STREF supports activities designed to strengthen the municipalities and communities' regulatory regimes to address and reverse housing loss induced by short-term rentals. This includes:

• Activities designed to support the planning, implementation, enhancement, and review of short‑term rental enforcement and compliance measures, such as:
• Raising awareness and educating the public
• Managing complaint systems
• Managing licensing, permitting, or registration systems
• Conducting investigations and inspections
• Issuing warnings, bylaw offence notices, or tickets
• Supporting legal proceedings
• Activities designed to increase short-term rental enforcement and compliance capacity, such as:
• Procuring or developing software and digital tools
• Procuring identification, monitoring, and compliance processes from compliance companies
• Recruiting additional enforcement and compliance personnel
• Providing staff training
• Developing, testing, and scaling new innovative tools, resources, and processes
• Developing partnerships and agreements, including with other levels of government and short-term rental platforms
• Creating and implementing an evaluation framework
• Creating and implementing a monitoring and performance measurement framework
• Conducting research and analysis on short-term rental enforcement
• Building and disseminating knowledge on short-term rental enforcement
• Other activities, as approved by HICC on a case-by-case basis, to meet the objectives of the STREF program.

Eligible costs

The STREF funding will support up to 100% of total eligible costs considered by HICC to be direct and necessary for the successful implementation of an eligible project, and no more than $4.8 million over the three years of the program per applicant jurisdiction, such as: 

• Wages and mandatory employment related costs for project staff
• Staff training and professional development costs
• Procurement of enforcement and compliance services
• Professional fees, including researchers and information technology (IT) providers
• Capital costs such as software, IT supplies, and solutions
• Overhead costs up to a maximum of 7% of total project expenses, that are central to the recipient's operations and directly related to support eligible activities as outlined in the Funding Agreement (i.e., postage, telephones, IT maintenance, and head office support)
• Printing and communication
• Transportation costs associated with investigations of suspected non-compliant short-term rentals
• Translation, including to Indigenous languages

Note: The following costs are not eligible under the STREF:

• Costs incurred before project approval and any expenditures related to contracts signed prior to project approval
• Cost incurred for cancelled projects
• New construction or expansion of physical assets and costs for leasing land, buildings, and other facilities; real estate fees and related costs
• Financing charges, collateral on mortgage financing, and loan interest payments, including those related to easements (e.g. surveys)
• Legal fees and mediation/alternative dispute resolution fees except for costs incurred to support legal proceedings related to short-term rental enforcement and compliance
• Any goods and services costs, which are received through donations or in kind
• Provincial sales tax, goods and services tax, and harmonized sales tax for which the ultimate recipient is eligible for a rebate, and any other costs eligible for rebates
• Cost related to furnishings and non-fixed assets, unless approved by Canada

How to apply

Detailed instructions on how to complete an application through the HICC Funding Portal can be found in Annex B and Annex C of the Applicant Guide.

Read the Applicant Guide

Before applying, applicants are strongly encouraged to consult the Applicant Guide, which provides detailed information on the application process, applicant and activity eligibility requirements, application assessment criteria, and other conditions of funding.

Create an account

Applicants must register for a secure account on the HICC Funding Portal before they can submit their STREF application for funding. Although an account can be created anytime, applicants will only be able to submit an application through the portal starting December 16, 2024, at 9:00 a.m. [ET]. Once a secure account is created, applicants will be able to access and complete the Application Form. If an applicant already has an account, they should use their existing credentials to access the application portal.

The HICC Funding Portal provides applicants with a "My Dashboard" feature, which allows them to create, save, edit, and submit their applications. It also allows applicants to see a list of any other project applications that their organization has submitted for funding.

Applications are only accepted electronically through the HICC Funding Portal. Applicants who are unable to apply through the portal are asked to reach out to the STREF team at stref-farlcd@infc.gc.ca.

Submit an application

Once a secure account is created in the HICC Funding Portal, the option to apply for the STREF funding will become available December 16, 2024, at 9:00 a.m. [ET]. To submit an application:

• Click on Apply for Funding. Upon doing so, account administrators are provided with a list of HICC funding programs from which to choose.
• Click on the Apply for the Short-Term Rental Enforcement Fund.
• Confirm the "Privacy and Eligibility" statements:
• Read the Privacy and Third-Party Notice Statement and confirm that the statement has been read and understood by selecting "Yes".

Note: The STREF application can be saved before submission as many times as necessary. Applicants are not required to complete the application in one session. Applicants who are unable to apply through the portal are asked to reach out to the STREF team at stref-farlcd@infc.gc.ca.

Upcoming webinars

Join one of our webinars to learn more about the STREF. These sessions will provide potential applicants with information on the program's eligibility criteria, guidance on the process of developing and submitting an application, as well as an opportunity to ask questions.

If you are interested in registering for a webinar, please email us your request at stref-farlcd@infc.gc.ca.  

Webinars will be delivered in both official languages and take place on the following dates:

English sessions

• December 10, 2024, at 10 a.m. [ET]
• December 12, 2024, at 1 p.m. [ET]

French sessions

• December 10, 2024, at 1 p.m. [ET]
• December 12, 2024, at 10 a.m. [ET]

Frequently asked questions

Application process

• How do I apply?

  • It is necessary to create a HICC Portal Account to submit an application for HICC programs. Detailed instructions on how to create your HICC Portal Account and how to fill out the Application Form can be found in Annex B and Annex C of the Application Form. The Application Form will be available on HICC Funding Portal during the application window from December 16, 2024, at 9:00 a.m. [ET] through January 24, 2025, at 4:00 p.m. [ET].
  • While the STREF program has launched, please note that the HICC Funding Portal will begin accepting applications on December 16, 2024. We encourage you to review the Applicant Guide and prepare your application in an external document and then copy and paste your answers into the fields of the Application Form. You do not need to complete your online application in a single session. The application can be saved and retrieved as many times as necessary before the submission deadline. If you experience technical difficulties with the account creation or application in the HICC Funding Portal, please contact the HICC Support Team at: crmsupport-soutiengrc@infc.gc.ca.
  • You can also find detailed instructions on how to complete an application through the HICC Funding Portal in Annex B and Annex C of the Applicant Guide.

  IMPORTANT!

  You are still required to register for a HICC Portal Account (see Annex B in the Applicant Guide) to receive communications and updates on your application. If this is an issue, please contact us as soon as possible. Please create your HICC Applicant Account a minimum of one week prior to the deadline to submit your application, as it may take a few days for your account to be fully functional.

• What are the additional documents required?

  • For provinces/territories, please attach a consent form that was received from the municipality or Indigenous community to receive the funding and become the eligible applicant and signatory to the agreement as required in the eligibility criteria above. For instructions on how to submit an additional document, please see Step by Step instructions in Part 4 – Required Documents of the Applicant Guide.
• What is the application process for an eligible applicant located in Quebec?

  • Please consult the Approval and Authorization Process in relation to the Act respecting the Ministère du Conseil exécutif (RLRQ, chapter M-30). As per the Act, all Quebec municipal bodies must obtain a Ministerial Order from the Government of Quebec authorizing the conclusion of an agreement with the federal government or one of its departments.
• What is the application process for an eligible applicant located in Alberta?

  • In the Province of Alberta, provincial approval may be required. The Provincial Priorities Act, 2024 (formerly Bill 18), may require provincial entities to obtain prior approval from Alberta's government before entering into, amending, extending or renewing an agreement with the federal government. 

Project selection and approval

• How will my application be assessed?

  • After the submission deadline, all submitted applications will first be screened for completeness and to confirm that they meet all eligibility criteria.
  • HICC reserves the right to accept a proposal at our discretion. If upon assessment of the application, further information is needed, applicants will be given five business days to provide the required information. Applications that do not provide all of the required information will be deemed ineligible. HICC may also review information in the public domain, including but not limited to materials on an applicant's website and in media articles, when determining the eligibility of an application. Applicants should make sure to include all relevant information in their answers, as applications will be assessed on the content of their response.
  • All applicants will be notified of the outcome of the application. HICC reserves the right to apply additional considerations in the selection of projects if the volume of applications is above the funding available for the STREF. This will include giving additional consideration to applications based on geographic location, whether the organization is an Indigenous governing body, and whether it aligns with the federal government's policies to promote linguistic duality and support the development of Official Language Minority Communities. Additionally, applications may be prioritized based on the eligible activities outlined in the application. 
• How will I know if my project has been selected for funding?

  • Once applications have been reviewed, successful applicants will be notified by HICC. HICC will communicate with the project's primary contact and discuss next steps, including negotiation of the project details and budget, as well as the signing of the Funding Agreement.
  • Please note that not all applications submitted under this call for proposals will be approved. Funding is limited and is subject to budget considerations of the STREF and allocation of funds by Parliament. Decisions are final and there is no appeal process.
  • HICC will update and publish the funding decision on the Dashboard of the Organization's Portal and notify applicants of the outcome of the review of their application.

Contact us

For questions about submitting an application, please contact the STREF team at the following address: stref-farlcd@infc.gc.ca.