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Current Issues / Recent Announcements

  1. New Federal Housing Initiatives
  2. Canada Housing Infrastructure Fund
  3. Canada Rental Protection Fund
  4. Prohibition on the Purchase of Residential Property by Non-Canadians Act
  5. Housing-Infrastructure Links (Housing Conditionality)
  6. Auditor General’s Report on Housing in First Nations Communities
  7. Indigenous Housing
  8. Canada Infrastructure Bank Support for Housing
  9. Support for Transit

New Federal Housing Initiatives

Issue / question

Which Budget 2024 initiatives will the Government of Canada undertake to increase the supply of housing for Canadians?

Suggested response

  • Budget 2024 includes several initiatives to increase the supply of housing for Canadians. Including:
    • An additional $15 billion in new loan funding for the Apartment Construction Loan Program;
    • $6 billion to launch the Canada Housing Infrastructure Fund;
    • $1 billion to top-up the Affordable Housing Fund;
    • $1.5 billion to launch the Canada Rental Protection Fund, to help acquire affordable rental units;
    • Launching Canada Builds, a Team Canada approach to building affordable homes; and
    • Launching a historic Public Lands for Homes Plan.
  • Moving forward, we will evaluate the effectiveness of these programs and double-down on successful initiatives, as we did in Budget 2024 with a $400 million top-up to the Housing Accelerator Fund.
  • Building more homes is a key part of Canada’s Housing Plan, to make housing more attainable and affordable for Canadians.

Background

  • Since 2017, the federal government has taken action to improve access to housing and make homes more affordable through the National Housing Strategy. The Government of Canada recognizes more needs to be done, and as part of Budget 2024 and Canada’s Housing Plan, additional programs will be implemented. For example:
    • Canada Builds will leverage low-cost loans from the Apartment Construction Loan Program (ACLP) along with provincial and territorial investments to scale up construction of rental homes for the middle class. Provincial and territorial programs will be expected to meet the benchmarks set by BC Builds, including:
      • Complementing federal funds with provincial or territorial investments;
      • Building on government, non-profit, community-owned, and vacant lands;
      • Cutting development approval timelines to a maximum of 12 to 18 months; and
      • Meeting all criteria of the ACLP, including affordability requirements.
  • In addition, Budget 2024 announced a top-up of $15 billion to the ACLP, further to the $15 billion in the 2023 Fall Economic Statement. This brings the program’s total loan funding to over $55 billion to support more than 131,000 new rental homes by 2031-32.
  • The Canada Housing Infrastructure Fund will fund housing infrastructure, such as water, wastewater, stormwater, and solid waste. This fund will include:
    • $1 billion available to municipalities.
    • $5 billion for provinces and territories (PTs) to support long-term priorities, conditional on key actions that increase housing supply.
    • Deadlines of January 1, and April 1, 2025, for PTs to secure agreements, respectively, or their allocations will be transferred to the municipal stream.
  • The Affordable Housing Fund received $1 billion further to the $1 billion top-up in the 2023 Fall Economic Statement. Total funding is now over $15 billion.
  • The Canada Rental Protection Fund will seek to mobilize investments and financing from the charitable sector, private sector, and other orders of government to help acquire more rentals and preserve additional affordable rents.
  • The Public Lands for Homes Plan will use all tools to convert public lands to housing and unlock 250,000 new homes by 2031, including by leasing, acquiring public lands via a new $500 million fund, and retaining ownership, when possible.

Canada Housing Infrastructure Fund

Issue / question

How is the Government of Canada helping to build the core infrastructure needed to help communities grow?

Suggested response

  • The Government of Canada is making historic investments to help ensure that all Canadians have a safe and affordable place to call home. Building on those investments, Budget 2024 proposes $6 billion in new federal funding to help build the infrastructure that enables communities to grow and flourish.
  • The new Canada Housing Infrastructure Fund will accelerate construction and upgrades of key infrastructure – including drinking water, wastewater, stormwater and solid waste – needed to support housing growth.
  • At the same time, the government will leverage this fund to seek commitments from provinces and territories on key actions that will promote housing growth, densification and affordability.

Background

  • Growing communities need quality infrastructure to build more homes, faster. To support this growth, investments are needed in water and solid waste infrastructure to remove barriers to housing and provide critical services for Canadians, amongst other environmental and climate benefits.
  • Budget 2024 proposes to provide $6 billion over 10 years, starting in 2024-25, to create the new Canada Housing Infrastructure Fund (CHIF) to accelerate the construction and upgrading of critical water, wastewater, stormwater and solid waste infrastructure that will directly enable new housing supply and help improve densification. The Fund comprises:
    • $1 billion available directly to municipalities to support urgent infrastructure needs that will directly enable housing supply.
    • $5 billion for agreements with Provinces and Territories (PTs) to support long-term priorities. PTs can only access this funding if they commit to key actions that increase housing supply:
      • Legalize more housing options by adopting zoning that allows four units as-of-right and allow more “missing middle” homes, including duplexes, triplexes, townhouses, and other multi-unit apartments.
      • Implement a three-year freeze on increasing development charges from April 2, 2024, levels for municipalities with a population greater than 300,000.
      • Adopt forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing options.
      • Provide pre-approval for construction of designs included in the Government of Canada’s upcoming Housing Design Catalogue.
      • Implement measures from the Home Buyers’ Bill of Rights and the Canadian Renters’ Bill of Rights.
  • To ensure this funding reaches communities of all sizes and needs, provinces must dedicate at least 20% of their agreement-based funding for northern, rural and Indigenous communities.
  • Provinces will have until January 1, 2025, to secure an agreement while territories will have until April 1, 2025, to do so. If a PT does not secure an agreement by their respective deadline, their funding allocation will be transferred to the municipal stream. The federal government will work with territorial governments to ensure the actions in their agreements are suitable to their distinct needs.
  • Through this Fund, Infrastructure Canada (INFC) will continue to be a reliable partner for water and solid waste infrastructure projects. For example, through the Investing in Canada Infrastructure Program, INFC has provided $1.1 billion for drinking water projects, $1.6 billion for wastewater projects, and $114.5 million for solid waste management projects.

Canada Rental Protection Fund

Issue / question

How is government preserving the affordability of existing homes and supporting the acquisition of affordable homes by community housing providers?

Suggested response

  • The Government of Canada is taking action to keep more homes affordable for Canadian renters with the recently proposed $1.5 billion Canada Rental Protection Fund.
  • Through a mix of contributions and loans, and by leveraging impact and philanthropic investing, the Canada Rental Protection Fund will help non-profits, co-ops and other community housing providers acquire buildings that are privately owned and keep them affordable over the long-term.
  • Putting more rental properties into the hands of non-profits will prevent them from being redeveloped into out of reach condos or luxury rental units. The Fund will also help to grow and strengthen our community housing sector, enabling it to become more independent over time and help deliver even more affordable housing options for Canadians.
  • The Canada Rental Protection Fund will build on the many existing initiatives in place to support affordable housing, including the Affordable Housing Fund, the Rapid Housing Initiative and the Federal Community Initiative.

Background

  • Rental affordability in Canada is a significant issue. The growth in purpose-built rental housing has not kept up with high population growth, so that renting has become less affordable for both lower income and middle-income Canadians.
  • A strong and growing community housing sector can be an effective means to preserve and add affordability in the market because it is mission-driven rather than profit-maximizing. Rent tied to cost of operations and maintenance grows slower than rents of privately-owned rental units facing market pressures. Acquiring existing rental homes at risk of falling out of affordability can be an important tool for safeguarding the affordability across the country.
  • Budget 2024 announced a new Canada Rental Protection Fund which will provide $1 billion in loans and $470 million in contributions to non-profit organizations and other partners so they can acquire units and preserve rent prices in the long term.
  • Co-led and co-funded by the federal government and other partners, the Fund will mobilize investments and financing from the charitable sector and the private sector to protect and grow affordable housing in Canada.
  • The Fund will also help grow and strengthen the community housing sector overall, enabling it to become more independent and support more affordable housing options for Canadians.
  • The Canada Rental Protection Fund builds on a number of existing and newly announced programs and measures which help support the community housing sector, including:
    • The $15 billion Affordable Housing Fund, which supports the creation of affordable rental housing and the repair and renewal of existing housing. It is designed to attract partnerships and investments to develop projects that meet a broad spectrum of housing needs, from shelters to mixed-income and mixed-use rentals;
    • The $4 billion Rapid Housing Initiative, which is fast-tracking the construction of 15,500 new affordable homes for people experiencing homelessness or in severe housing need by 2026;
    • The Federal Community Housing Initiative, a $600+ million initiative that provides funding to federally administered community housing providers to stabilize their operations, subsidize rents for tenants in need, and maintain the current federally administered community housing stock; and,
    • The $1.5 billion Co-operative Housing Development Program, to be launched in summer 2024.

Prohibition on the Purchase of Residential Property by Non-Canadians Act

Issue / question

What is the purpose of the Prohibition on the Purchase of Residential Property by Non-Canadians Act?

Suggested response

  • Housing affordability and housing supply are real concerns for many Canadians. We want Canadians to own Canadian homes, so in January 2024, our government put in place a prohibition on foreign ownership of Canadian housing, which will extend until January 1, 2027.
  • The Act immediately addresses housing affordability challenges experienced by Canadians, by preventing foreign commercial enterprises and people who are not Canadian citizens or permanent residents from purchasing residential property located in urban centres.
  • The Act has a $10,000 fine for anyone who violates it.

Background

  • The Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from buying residential property in Canada for two years starting on January 1, 2023. The ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, has been extended to January 1, 2027.
  • The Act defines residential property as buildings with three homes or less, as well as parts of buildings like a semi-detached house or a condominium unit. The law does not prohibit the purchase of larger buildings with multiple units. The Act and Regulations provide exceptions.
  • The Regulations clarify that the prohibition applies to residential property located in a census metropolitan area (CMA) or a census agglomeration (CA). A CMA must have a total population of at least 100,000 of which 50,000 or more must live in the core and a CA must have a core population of at least 10,000, as identified in the Statistics Canada’s Standard Geographical Classification 2021.
  • The Act has a $10,000 fine for any non-Canadian or anyone who knowingly assists a non-Canadian and is convicted of violating the Act. If a court finds that a non-Canadian has done this, they may order the sale of the house.
  • This does not apply to non-Canadians who are looking to rent.

Housing-Infrastructure Links (Housing Conditionality)

Issue / question

How will the Government create links between housing and infrastructure?

Suggested response

  • In 2023, we launched the now $4.4 billion Housing Accelerator Fund to remove local barriers to building more homes and allow communities to upgrade the infrastructure necessary to build denser neighbourhoods.
  • To date, the federal government has signed 179 Housing Accelerator Fund agreements which will fast-track an estimated total of over 750,000 housing units across the country over the next decade.
  • Going forward, we will work with all orders of government, leveraging infrastructure programming such as the Canada Public Transit Fund, Canada Community-Building Fund, and the recently announced Canada Housing Infrastructure Fund, to ensure that these infrastructure investments enable growth of the right kind of housing that is affordable and meets the needs of our growing communities, while being in proximity to infrastructure assets and transit.
  • The Government of Canada is committed to building more complete, inclusive, and sustainable communities. This means building more housing near reliable transit lines that connect workers to jobs and community spaces.

Background

  • Since Budget 2022, Infrastructure Canada has been working toward the Government of Canada’s commitment to leverage infrastructure funding to advance housing outcomes that increase housing supply and improve affordability across the country. The Government of Canada, working with its provincial, territorial, and municipal partners, has identified various opportunities to implement this approach to help future infrastructure programs become housing multipliers.
  • In March 2023, the Government of Canada launched the now $4.4 billion Housing Accelerator Fund (HAF). This initiative will help cities, towns, and Indigenous governments unlock new housing supply by removing systemic barriers and speeding up development and approvals, including by fixing out-of-date permitting systems, reforming zoning to build more density, or incentivizing development in proximity to public transit.
  • In February 2021, the Prime Minister announced Canada’s first permanent public transit funding envelope of $3 billion annually, beginning in 2026-27, which can help tackle housing affordability challenges by incentivizing more housing supply near transit and enabling more people to choose transit over cars.
  • Going forward, federal infrastructure programs, including the Canada Public Transit Fund (CPTF), the Canada Community-Building Fund (CCBF), and the Canada Housing Infrastructure Fund (CHIF), will link housing and infrastructure by requiring that recipients commit to actions that increase housing supply and affordability in their jurisdictions. Communities over 30,0000 will be required to complete Housing Needs Assessments (HNAs) to ensure the right kind of supply is built for those who need it most and to maximize the ability of federal investments to drive outcomes across the entire housing continuum in an evidence-based manner.
  • Budget 2024 included requirements for municipalities to receive CPTF funding: eliminating minimum parking requirements; allowing high density housing within 800m of a high frequency transit line; and the HNA requirement. These will be supplemented by regional housing narratives embedded in Integrated Regional Plans that will inform the housing targets negotiated as part of CPTF funding.
  • Announced in Budget 2024, the $6 billion CHIF, starting in 2024-25 over 10 years, will accelerate the construction and upgrade of water, wastewater, stormwater, and solid waste infrastructure that will directly enable new housing and densification. Provinces and territories can access $5 billion to support long-term priorities if they commit to actions that increase housing supply: require municipalities to adopt four units as-of-right and allow more missing middle homes; implement a three-year freeze on development charges for cities over 300,000; adopt forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing; require as-of-right construction for the Housing Design Catalogue; and implement measures from the forthcoming Home Buyers’ and Renters’ Bills of Rights.

Auditor General’s Report on Housing in First Nations Communities

Issue / question

Aligned to the OAG audit, what are Infrastructure Canada, the Canada Infrastructure Bank, and Canada Mortgage and Housing Corporation doing with respect to First Nations housing?

Suggested response

  • Indigenous Services Canada (ISC), Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), and Canada Mortgage and Housing Corporation (CMHC) lead on federal investments in Indigenous housing.
  • Since 2015, the Government of Canada has created almost 22,000 new or repaired homes on-reserve.
  • Infrastructure Canada (INFC) and the Canada Infrastructure Bank (CIB) support investments that enable First Nations housing development.
  • Budget 2024 announced $918 million to accelerate work to narrow housing and infrastructure gaps in First Nations, Inuit, and Métis communities.
  • To support housing for Indigenous Peoples living off reserve, the federal government has committed $4.3 billion to an Urban, Rural and Northern Indigenous Housing Strategy. CMHC is currently co-developing the Strategy.
  • In March 2024, CIB launched the Infrastructure for Housing Initiative, targeted loans for municipalities and Indigenous communities to help fund housing infrastructure.
  • INFC also delivers Reaching Home, including the Indigenous Homelessness stream, which provides funding to 30 urban communities (outside the territories), for the delivery of Indigenous culturally-appropriate homelessness services, and the Distinctions-based Approaches stream, which provides project funding to some Self-Governing First Nations and national or regional representatives of First Nations, Inuit, and the Métis Nation.

Background

  • In March 2024, a report from the Auditor General of Canada raised concerns about housing in First Nations communities and found that Indigenous Services Canada (ISC) and the Canada Mortgage and Housing Corporation (CMHC) have made little progress in improving housing conditions for First Nations.
  • First Nations housing on reserve is primarily delivered by ISC and CMHC. ISC funding for on reserve housing and infrastructure is at an historic high, yet the Assembly of First Nations (AFN) estimates the on-reserve housing gap to have grown to $135 billion.
  • CMHC’s on-reserve legacy programs (see below) provide support for community and market housing. Both CMHC and ISC recognize that more work needs to be done to develop homeownership and alternative financing on-reserve.
  • Through the Joint Working Group on the National First Nations Housing and Related Infrastructure Strategy, discussions are ongoing with the AFN on transferring care and control of on reserve housing to First Nations. ISC and CMHC are federal co-chairs of the Joint Working Group while Infrastructure Canada (INFC) is a participant.

Canada Infrastructure Bank (CIB)

  • The CIB has a target to invest at least $1 billion in revenue-generating Indigenous infrastructure projects across five priority sectors: clean power, green infrastructure, public transit, broadband, and trade and transportation. Consistent with CIB’s authorities and in line with the Minister’s September 2023 Statement of Priorities and Accountabilities issued to the CIB, the CIB investments in housing are to be limited to enabling infrastructure needed to support housing growth, primarily water infrastructure, local civil works, and broadband.
  • Through the Indigenous Community Infrastructure Initiative (ICII), the CIB has an agreement to invest $7.9 million in the Netmizaaggamig Nishnaabeg Reserve Extension. The CIB’s investment will support critical infrastructure required for commercial and residential development that will improve living standards on reserve.
    • The project includes construction of approximately 1 km of new road, the extension of water services tied into the existing water treatment system, the extension of existing fixed wireless broadband and the electrification of 55 new building lots. Buildings planned for the 55 lots include: 10 units of multi-family affordable housing; 2 units of social housing, 8-10 units of market and staff housing; and commercial buildings, including a family services office building, a construction yard, a mixed office and retail building, a health centre with a pharmacy and clinic, and a police station.

CMHC

  • CMHC delivers specific housing programs that support construction, renovations, ongoing management of social housing and housing-specific development, including in Indigenous communities. These programs complement ISC’s funding for on-reserve housing. Examples of CMHC-led programs include:
    • CMHC’s On-Reserve Non-Profit Housing Program (Section 95) assists First Nations in the construction, purchase and rehabilitation and administration of rental housing on-reserve.
    • CMHC’s On-Reserve Renovation Programs offer financial assistance to First Nations to repair substandard homes to a minimum level of health and safety, to convert non-residential properties into affordable self-contained housing units, and improve the accessibility of housing for low-income seniors and persons with disabilities.
    • CMHC’s Shelter Enhancement Program on-reserve offers financial assistance for the repair, rehabilitation, and improvement of existing shelters in First Nation communities for survivors of family violence.
  • Budget 2022 proposed $4.3 billion over seven years towards improving and expanding Indigenous housing in Canada, which includes:
    • $2.4 billion over five years to support First Nations housing on reserves;
    • $565 million over five years to support housing in Self-Governing and Modern Treaty Holder First Nations communities;
    • $845 million over seven years to support housing in Inuit communities;
    • $190 million over seven years for housing in Métis communities; and
    • $300 million over five years to co-develop and launch an Urban, Rural, and Northern (U.R.N.) Indigenous Housing Strategy (delivered by ISC).
  • Of the $300 million for an U.R.N. Indigenous Housing Strategy, $281.5 million was accelerated over two years and provided to National Indigenous Collaborative Housing Inc. to address immediate unmet needs. The remaining $18.5 million flowed through CMHC to support Indigenous-led engagements on the Strategy.
  • This funding was in addition to $2.7 billion allocated to support housing in Indigenous communities between 2015 and 2022.
  • Budget 2023 committed an additional $4 billion, over seven years, starting in 2024‑25, to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy which is intended to support Indigenous housing off reserve (outside of Indigenous communities). CMHC is the lead federal organization, supporting the establishment of an Indigenous-led National Indigenous Housing Centre, which is expected to disburse 70% of the funding. 30% will be allocated on a distinctions-basis through funding arrangements with ISC and Crown-Indigenous Relations and Northern Affairs Canada.

Auditor General Report

  • CMHC welcomes the report of the Auditor General of Canada on Housing in First Nations Communities.
  • CMHC’s work with First Nations has continually evolved over recent years. CMHC is listening and changing the way it engages and works with First Nations and is diligently seeking opportunities to supplement and complement the existing suite of programs.
  • In addition, the work currently underway at CMHC and ISC, in partnership with First Nations, provinces and territories, closely aligns with the recommendations in the Auditor General’s report.

INFC

  • Canada’s Housing Plan, announced on April 12, 2024, sets out an ambitious approach to restore housing affordability, where everyone – including First Nations – has a place to call home. The Housing Plan includes three pillars: building more homes, making it easier to rent or buy a home, and helping Canadians who can’t afford a home.
  • In addition to the general housing measures announced in Budget 2024, $918 million is being directed to Indigenous Housing and Infrastructure, of which $426 million provides support for First Nations on reserve and $62 million is identified for Self-Governing and Modern Treaty First Nations.
  • INFC delivers the Reaching Home program, which includes the Indigenous Homelessness and Distinctions-based Approaches and Modern Treaty Holder funding streams. These funding streams provide funding to organizations that provide supports to meet the specific needs and rights of First Nations, Inuit, and Métis people who are experiencing or at risk of homelessness as well as to Self-governing‑ First Nations and national and regional representatives of First Nations, Inuit, and the Métis Nation. Indigenous peoples are not limited to accessing only the services that are funded by the Indigenous homelessness stream; they may also access services and supports from organizations that are funded by the program’s other regional streams.
    • The total funding envelope for the Indigenous Homelessness Stream is $686 million and for the Distinctions-based Approaches stream is $212 million.

Indigenous Housing

Issue / question

How is the Government of Canada working with Indigenous communities to help address housing needs?

Suggested response

  • The Government of Canada recognizes that gaps in housing for Indigenous peoples continue to persist, including on reserve, and that the rate of core housing need for Indigenous peoples, at 13.2%, is higher than the rate for non-Indigenous Canadians. That is why more than $1.6 billion in funding has been committed exclusively for Indigenous and Northern Housing through the National Housing Strategy.
  • Since 2015, the federal government has committed more than $6.7 billion for housing in Indigenous communities and a further $4.3 billion to advance an Urban, Rural, and Northern Indigenous Housing strategy to improve and expand Indigenous housing in Canada.
  • Budget 2024 announced additional investments of $918 million to accelerate work in narrowing housing and infrastructure gaps in First Nations, Inuit, and Métis communities.
  • The Government of Canada is committed to improving Indigenous housing outcomes, and to building a renewed relationship together with Indigenous peoples, based on recognition of rights, respect, cooperation and partnerships.

Background

  • Funding was announced in successive federal budgets to support Indigenous housing across Canada. This has included funding for distinctions-based housing strategies, as well as to support Indigenous housing in urban, rural, and northern areas.
  • The Government of Canada has established permanent bilateral mechanisms with First Nations, Inuit, and Métis leaders to identify joint priorities, co-develop policy and monitor progress. In many cases, these, along with other tables, support joint work on Indigenous housing.
  • Canada Mortgage and Housing Corporation (CMHC) and Indigenous Services Canada focus on several aspects of providing housing programs and services for eligible First Nation communities. Crown-Indigenous Relations and Northern Affairs Canada provides funding for the implementation of the Inuit Nunangat Housing Strategy and the Métis Nation Housing Sub-Accord, as well as to Modern Treaty and Self-Governing First Nations.
  • CMHC delivers specific housing programs that support construction, renovations, ongoing management of social housing and housing-specific development. CMHC has specialists located across the country that are working with Indigenous partners, communities, and organizations to facilitate access to the National Housing Strategy and other CMHC programs. For example:
    • CMHC’s On-Reserve Non-Profit Housing Program (Section 95) assists First Nations in the construction, purchase and rehabilitation and administration of rental housing on-reserve.
    • CMHC’s On-Reserve Renovation Programs offer financial assistance to First Nations to repair substandard homes to a minimum level of health and safety, to convert non-residential properties into affordable self-contained housing units, and improve the accessibility of housing for low-income seniors and persons with disabilities.
    • CMHC’s Shelter Enhancement Program on-reserve offers financial assistance for the repair, rehabilitation, and improvement of existing shelters in First Nation communities for survivors of family violence.
  • Budget 2022 proposed $4.3 billion over seven years towards improving and expanding Indigenous housing in Canada, which includes:
    • $2.4 billion over five years to support First Nations housing on reserves;
    • $565 million over five years to support housing in Self-Governing and Modern Treaty Holder First Nations communities;
    • $845 million over seven years to support housing in Inuit communities;
    • $190 million over seven years for housing in Métis communities; and
    • $300 million over five years to co-develop and launch an Urban, Rural, and Northern Indigenous Housing Strategy.
  • Budget 2023 committed an additional $4 billion, over seven years, starting in 2024-25, to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy.

Canada Infrastructure Bank Support for Housing

Issue / question

How is the Canada Infrastructure Bank supporting housing?

Suggested response

  • In March 2024, the Canada Infrastructure Bank (CIB) launched the Infrastructure for Housing Initiative, which supports enabling infrastructure required for new housing developments.
  • This initiative is targeted at municipalities and Indigenous communities, and will allow them to prioritize infrastructure that is necessary to support new housing without delaying other funding priorities.
  • Under this initiative, the CIB has already committed $140 million for water projects that are expected to unlock up to 15,000 housing units in Brandon and southeastern Manitoba.
  • In the Statement of Priorities and Accountabilities that was issued in September 2023, the CIB was asked to bolster its investments in infrastructure that enables housing developments, including water, wastewater, district energy, and public transit and to advise the Government on other opportunities that could stimulate investments in the national housing supply.

Background

  • In March 2024, the Canada Infrastructure Bank (CIB) announced the Infrastructure for Housing Initiative (IHI), a targeted loan product for municipalities and Indigenous communities that aims to fund new infrastructure in support of new housing supply.
  • Investments under the IHI are made under the CIB’s existing funding envelope and priority sectors. Eligible projects include:
    • Water: water, wastewater, stormwater, conveyance;
    • Transportation: roads, bridges and related civil work;
    • Transit: electric buses, light-rail transit, stations and terminals; and
    • Clean power: district energy, electricity distribution, storage.
  • Under this initiative the CIB would partner with the private sector to provide a co‑blended loan to municipalities for infrastructure that is necessary to support new housing development. The private sector loan, at market rate, would be combined with CIBs conditional financing, to provide municipalities a loan that is lower than what is available through traditional financing avenues.
  • The objective of this initiative is to address infrastructure capacity constraints that are limiting new housing construction, by enabling municipalities to build infrastructure ahead of population growth.
  • This is done by the CIB sharing in the risk of future development and associated revenues, including whether they materialize at the speed anticipated, thereby reducing risks to municipalities who are required to build infrastructure ahead of demand.
  • The revenue source for these projects will likely come from direct user fees (e.g. water ratepayers).
  • Over the years, the CIB has been supporting housing developments by investing in enabling infrastructure such as water, wastewater, district energy and public transit. These include: 
    • Investments of up to $140 million in water and wastewater infrastructure projects in Brandon, Manitoba, and a bundle of smaller communities in southeastern Manitoba (collectively, the Red-Seine-Rat Cooperative), to support cleaner water for approximately 78,000 units and future developments of approximately 15,000 new housing units;
    • Clean energy investments of $135 million in the Markham District Energy project which will help expand future district energy systems and support future housing in the City of Markham;
    • Investments of $7.9 million in building better water, electricity and broadband services in the Netmizaaggamig Nishnaabeg community of Northern Ontario which will contribute to building approximately 55 multi-family affordable and social housing units; and
    • A $1.28 billion investment that will go towards the construction of a new automated light-rail train network serving the greater Montréal area. It includes 26 stations, spanning 67 km of tracks, almost doubling the current metro network and will connect suburban populations with downtown Montréal and the Montréal-Trudeau International Airport.

Support for Transit

Issue / question

What is the government doing to support transit across the country?

Suggested response

  • Since 2015, the Government has announced more than $30 billion for more than 1,400 public transit projects across the country. In 2021, the Prime Minister announced permanent public transit funding.
  • Municipalities will need to take action to unlock housing supply in order to access this permanent, predictable and flexible public transit funding.
  • The Government of Canada works with all levels of government and partners to support public transit and active transportation networks, create jobs, and make communities cleaner, more accessible, sustainable, and livable for everyone.
  • As new affordable housing is built, it is critical that public transit be available for Canadians to get to work, access services and actively participate in their communities.

Background

  • The Permanent Public Transit Program (PPTP), launched in 2021, is a transfer payment program which was created to support the expansion of public transit systems and active transportation networks across Canada. All funds under the program are managed through Grants and Contributions Agreements signed with eligible recipients.
  • The PPTP includes three direct-application funds:
    • The Zero Emission Transit Fund (ZETF): Initially announced at $2.75 billion over five years, ZETF is advancing the Government of Canada’s commitment to help procure zero emission public transit and school buses across Canada. ZETF investments are closely coordinated with the Canada Infrastructure Bank’s commitment to invest in zero emission buses as part of its Growth Plan. The program is currently open for applications on an ongoing basis.
    • The Active Transportation Fund (ATF): The five year, $400 million ATF aims to expand and enhance active transportation networks in communities of all types and sizes, while also supporting Canada’s National Active Transportation Strategy. It does so by supporting planning for, and the deployment of a wide range of walking, cycling, and other active mobility infrastructure. The intakes are closed and most of the funding has been allocated.
    • The Rural Transit Solutions Fund (RTSF): initially announced as $250 million over five years, RTSF addresses unique challenges in rural communities by supporting planning and deployment of locally tailored transit solutions in rural communities, including support to assess the viability of new approaches to mobility. Rolling intakes of the Capital stream and the Planning stream were launched in 2023 (in January and December, respectively). The capital intake closed on February 28, 2024, while the Planning intake will remain open.
  • Funding is also available to support major projects and accelerate the expansion of large urban transit systems that many Canadians depend on every day.
  • Public engagement on the Permanent Public Transit Fund has helped to refine our vision for the ongoing funding moving forward and develop a more detailed approach to be released in the coming months.
  • To access long-term, predictable funding for public transit through the federal government’s forthcoming public transit fund, municipalities will be required to take action that will directly unlock housing supply. This include measures to:
    • Eliminate all mandatory minimum parking requirements within 800 metres of a high-frequency transit line.
    • Allow high-density housing within 800 metres of a high-frequency transit line.
    • Allow high-density housing within 800 metres of post-secondary institution.
    • Complete a Housing Needs Assessment for all communities with a population greater than 30,000.
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