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Key Issues

  1. Development Charges
  2. Pro-housing Tax Measures
  3. Interest Rates and Housing
  4. Market Housing Supply Gap
  5. Affordable and Non-Market Housing
  6. Housing and immigration
  7. Build Canada Homes
  8. Housing Accelerator Fund
  9. Federal Lands Initiative
  10. Canada Housing Infrastructure Fund
  11. Housing and Infrastructure in the Territories/North
  12. Federal Homelessness Programming
  13. National Housing Strategy
  14. Canada Infrastructure Bank Involvement in Housing and Retrofits

Development Charges

Issue / question

What is the Government of Canada doing to reduce the burden of development charges?

Suggested response

  • The Government of Canada is committed to making the housing market work better. This includes reducing the burden of development charges on homebuilders so that they can get more shovels in the ground – at the same time as ensuring that municipalities are able to build the infrastructure needed to support this growth.
  • The federal government is engaging with provinces, territories, municipalities, the development community, and others to solicit views and understand best practices to inform the way forward.
  • Federal actions on development charges will complement other measures to support housing supply and affordability, such as Build Canada Homes and eliminating the GST for some first-time homebuyers.
  • Recognizing that many municipalities rely on development charges to pay for a wide range of infrastructure, the government is keeping these needs in mind as we work through the best approaches to accelerate homebuilding.

Background

  • Development charges are fees levied by municipalities on new development to pay for new and expanded infrastructure needed to support growing communities. The 2025 Speech from the Throne included a commitment to cut municipal development charges in half for multi-unit residential housing.
  • The use of development charges varies significantly across the country, with municipalities in Ontario and BC relying most heavily on this revenue tool. Most provinces and territories have legislation that allows municipalities to collect development charges, but not all municipalities do so.
  • Provincial and territorial legislation also determines the specific services for which municipalities can collect development charges, which can include drinking water, wastewater, stormwater, solid waste/waste management, transportation, parkland, transit, recreation and community, and emergency services. Some jurisdictions include many more categories of services in their development charge frameworks than others, and, within provinces and territories, municipalities will use development charges for different needs.
  • Building infrastructure is essential to provide the services needed for new housing to be built. However, development charges have increased significantly in parts of the country in recent years. According to the Canada Home Builder’s Association Municipal Benchmarking 2024 Study, development charges and related taxes and fees on low-rise housing have increased an average of $27,500 for a unit in a low-rise development and an average $3,000 per unit in a high-rise development since the 2022 Study.
  • Beyond taking action to reduce the burden of development charges for housing developers, the Government of Canada is supporting growth-enabling infrastructure through investment in the Canada Housing Infrastructure Fund, which provides federal funding to provinces, territories, and municipalities for drinking water, wastewater, stormwater, and solid waste infrastructure to enable housing development. The Canada Community Building Fund and Canada Permanent Transit Fund also provide funding for infrastructure needed to support growing communities.

Pro-housing Tax Measures

Issue / question

How is the Government of Canada using tax measures to accelerate investment to build more housing?

Suggested response

  • The Government of Canada is using a number of tax measures to support the construction of more housing in Canada by supporting rental projects, first-time homebuyers and homebuilders directly.
  • The Goods and Services Tax (GST) has been removed on new purpose-built rental projects, incentivizing the construction of more apartment buildings, student housing, and seniors’ residences. For a two-bedroom rental unit valued at $500,000, for example, the initiative is expected to deliver $25,000 in tax relief.
  • The GST is also eliminated for first-time home buyers on new homes up to $1 million and reduced for first-time home buyers on new homes between $1 million and $1.5 million. This will lower upfront costs of by up to $50,000, and spur new home construction across the Canada.

Background

  • The federal government is creating the financial incentives to build more homes, faster, by removing the Goods and Services Tax (GST) from new purpose-built rental housing projects, such as apartment buildings, student housing, and seniors’ residences.
  • Removing the GST from new purpose-built rental projects will enable builders to build more projects and create more units at more affordable rents across Canada. The Enhanced (100%) GST Rental Rebate applies to projects that begin construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.
  • An accelerated capital cost allowance (CCA) for purpose-built rental projects that will increase builders' after-tax return on investment has also been announced.
    • The CCA system determines the capital depreciation deductions that a business may claim each year for income tax purposes. Standard tax treatment for new rental apartment development is to allow 4% depreciation per year on a declining-balance basis. Budget 2024 announced a temporary accelerated CCA of 10% per year for new eligible purpose-built rental projects that begin construction on or after Budget day (i.e., April 16, 2024) and before January 1, 2031, and are available for use before January 1, 2036.
  • Both rental housing tax measures will apply to new purpose-built rental housing (i) that is a residential complex with at least four units or 10 private rooms / suites, and (ii) in which at least 90% of residential units are held for long-term rental.
  • To be considered a “first-time home buyer” for the purposes of the First-Time Home Buyers’ GST Rebate, an individual would need to meet various conditions, including being at least 18 years of age and being either a Canadian citizen or a permanent resident of Canada.
  • The First-Time Home Buyers’ GST Rebate would be phased out for new homes valued between $1 million and $1.5 million. For example, a home valued at $1.25 million (half way between $1 million and $1.5 million) would be eligible for 50% of the maximum rebate (a rebate of $25,000).
  • No First-Time Home Buyers’ GST rebate would be available for new homes valued at or above $1.5 million.

Interest Rates and Housing

Issue / question

How do interest rates impact housing demand, supply and affordability in Canada?

Suggested response

  • Interest rates exert a substantial influence on housing demand, primarily through their effect on mortgage costs. Higher rates increase borrowing costs and dampen buyer and investor interest, while lower rates generally stimulate demand.
  • High rates can also increase rental demand and rents as potential first-time home buyers delay entering the ownership market. Interest rates impact housing supply by affecting residential investment, as the sector relies heavily on debt financing. As borrowing costs rise, construction activity tends to slow.
  • Although reductions in interest rates can offer some relief, they do not fully address the broader affordability issues within the market. Structural challenges, such as zoning restrictions and delays in permitting, remain unaffected by changes in monetary policy and continue to constrain housing supply.

Key point

  • On September 17, 2025, the Bank of Canada decreased the policy rate to 2.50%.
  • Purpose-built rental starts increased from 82,921 starts in 2022 to 95,852 starts in 2024 despite increasing interest rates.

Background

  • Empirical analysis by the Bank of Canada (BoC) found that residential investment (i.e., new construction, ownership transfer costs, and renovations) is more responsive to interest rate changes than other consumption categories. This is largely due to a reliance on borrowing to finance this investment.
  • From 2020 to 2022 during the peak of the global pandemic, the BoC lowered its interest rate from 1.75% to 0.25% to support the economy. This period saw a historic boom in residential construction and peak material prices driven by high demand coupled with supply chain disruptions.
  • Between 2022 and 2023, as markets stabilized, and the BoC raised interest rates consecutively — from 0.25% to 5%. The sharp rise in borrowing costs made it more difficult for prospective homebuyers to qualify for mortgages, increased financing costs for developers, and cooled investor interest in new housing projects.
  • However, despite the interest rate hikes, investment increased in purpose-built rentals, which rose from 82,921 starts in 2022 to 95,852 starts in 2024. Programs such as the Apartment Construction Loan Program may have helped mitigate some of the impacts of rising interest rates for rental construction.
  • On September 17, 2025, the BoC’s decision to decrease the policy rate noted housing activity was up at a healthy pace. Previous rate decisions (four consecutive holds) highlighted declining residential investment since the start of the trade dispute with the United States – despite rates remaining lower than what they were 18 months ago.
    • In the near-term, Canada Mortgage and Housing Corporation suggests that economic uncertainty and trade tensions will continue to impact Canada’s housing market, but anticipates a gradual recovery by 2026.
    • In the medium-to-longer term, lowering borrowing costs could accelerate new construction by boosting demand and lowering financing costs for new developments.
  • Despite lower borrowing costs, affordability challenges will continue to limit buyers’ ability to own a home. The housing supply gap remains wide, despite narrowing because of reduced immigration targets for permanent and non-permanent residents in 2024. These lower targets are already starting to materialize as the latest estimates show that Canada’s population remained virtually unchanged during the second quarter of 2025.
  • Interest rates are one of many factors that impact housing supply, demand and affordability. Additionally, the impacts of interest rate changes are broad, and ill-suited for targeting specific sectors, subsectors, or regions. Changes to monetary policy also will not alleviate pressures such as zoning restrictions, development charges, permitting and construction delays. Monetary policy can also not fully address the role of ongoing economic uncertainty in weakening both consumer and business confidence, which translates into fewer home sales and reduced residential investment.

Market Housing Supply Gap

Issue / question

What is the Government of Canada doing to address the market housing supply gap?

Suggested response

  • This government is committed to using every tool at its disposal to double the rate of homebuilding nationwide.
  • This includes, through the creation of Build Canada Homes, building affordable homes, supporting builders with financing, and encouraging better building methods.
  • The federal government is taking action to increase the supply of housing by cutting the GST on the construction of rental housing and by building on the success of programs that incentivize communities to reduce barriers, cut red tape, invest in housing enabling infrastructure, and make homebuilding easier.

Background

  • Canada is facing a housing supply gap, with the growth in demand for housing exceeding new construction. This scarcity has resulted in housing prices and rents growing far faster than Canadians’ income.
  • One of the main drivers of the housing shortage has been the strong growth in housing demand driven by immigration-led population growth. Restrictive and time-consuming planning processes, increasing building costs, and low productivity in the construction sector have also impacted the pace of home construction.
  • Various published estimates of the supply gap, based on different methodologies, indicate that millions of new homes need to be built over the next decade to meet the demand for housing.
    • In June 2025, Canada Mortgage and Housing Corporation released a Housing Supply Gap report estimating that housing starts would need to increase from approximately 250,000 to 430,000 – 480,000 annually over the next decade to restore affordability to pre-pandemic levels.
    • In August 2025, the Parliamentary Budget Office estimated that 690,000 additional housing units, on top of baseline completions, will be needed by 2035 to eliminate the housing gap in Canada.
  • The federal government has also introduced a number of initiatives aimed at increasing the supply of market housing, including:
    • Removing the Goods and Services Tax on the construction of new rental buildings to bring down the costs of homebuilding;
    • Providing a $30 billion top-up to a flagship housing program – the Apartment Construction Loan Program – that provides low-interest loans to builders and developers to boost the construction of rental housing;
    • Launching the $4.4 billion Housing Accelerator Fund – a program that incentivizes local government to remove barriers that slow the construction of housing; and,
    • Launching a Housing Design Catalogue to help change how homes are built by simplifying the delivery of housing across the country.
  • To better match immigration with the capacity to build new homes, the Government of Canada announced, in the fall of 2024, a reduction in permanent resident targets from 500,000 to 395,000 in 2025, with admissions falling to 365,000 in 2027. This decrease was coupled with cuts to temporary immigration to 5% of the total population by the end of 2026.

Affordable and Non-Market Housing

Issue / question

What is the Government of Canada doing to build more affordable housing?

Suggested response

  • Helping Canadians access affordable and non-market housing is a key priority for this government.
  • Building on the success of previous federal initiatives like the National Housing Strategy and Canada’s Housing Plan, this government will provide strong leadership to scale up affordable housing.
  • Through Build Canada Homes, this government will support affordable, non-market housing using modern and sustainable methods of construction, predictable and scalable financing solutions, and collaborative partnerships with all levels of government, Indigenous communities, and both the not-for-profit and private sectors.

Background

  • Non-market housing, or community housing, provides affordable homes with below-market rents that grow at a slower pace relative to the market (i.e., generally in line with operating costs, rather than market rental rates). Current supply of non-market housing is not enough to keep up with demand. Given the sector’s growth rate is less than half that of market housing, the share of non-market housing decreases each year.
  • In 2021, 47% of renter households in Canada reported experiencing one or more of the following challenges: housing cost over 30% of their income, housing that was not suitable for the size of their household, or housing in need of repairs.
  • Nearly half of non-market housing was built before 1980, with 87% built prior to 1996.
  • The sector is highly fragmented, with about half of the total units managed by several thousand small providers, each of which typically owns fewer than 100 units. The largest 40 providers, typically provincial housing corporations and larger municipalities, own and manage the other half of the stock.
  • Much of the current non-market housing stock relies on ongoing support from all levels of government, through legacy operating agreements and rent subsidies. Current investments have preserved existing non-market housing and helped grow its stock, but not to the scale needed to help restore housing affordability. The Government of Canada’s investments in non-market housing include:
    • The Affordable Housing Fund, which is providing $15.9 billion over 11 years in long-term, low-cost repayable and forgivable loans to build new affordable housing and to repair and renew existing affordable and community housing;
    • The Co-operative Housing Development Program, which is providing $1.5 billion over seven years in low-cost repayable and forgivable loans to build a new generation of non-profit co-op housing;
    • The Federal Community Housing Initiative, a $618 million investment to help preserve 48,000 community housing units;
    • The Canada Community Housing Initiative ($4.3 billion in federal funding with an additional $4.3 billion cost-matched by provinces and territories) to preserve and expand community housing; and
    • The Canada Rental Protection Fund which is a $1.5 billion investment to help the community housing sector acquire rental apartment buildings and preserve affordability of rents over the long term.

Housing and Immigration

Issue / question

What is the Government of Canada doing to address the impact of high levels of immigration on housing?

Suggested response

  • This government is committed to make housing more affordable, returning overall immigration rates to sustainable levels, and attracting the best talent in the world to help build our economy.
  • By taking bold action to build more homes faster, the federal government is making it easier for Canadians and new immigrants to own or rent a home.
  • This government will continue to calibrate immigration levels with housing supply and demand for other public services, and is committed to fostering a well-managed, responsive, and sustainable immigration system.

Background

  • Canada has experienced unprecedented population growth in recent years, which has increased demand for housing. Statistics Canada indicates that immigration accounted for more than 97% of this growth in 2024. Further, according to estimates from the Parliamentary Budget Officer, in 2024, there were approximately 482,000 new households formed while only 276,000 housing units were completed.
  • In April 2024, the Government of Canada released Solving the Housing Crisis: Canada’s Housing Plan which sets out an ambitious suite of measures. These measures, alongside subsequent announcements, will benefit newcomers and Canadians alike, and include:
    • $1.1 billion over three years for the Interim Housing Assistance Program which helps provincial and municipal governments prevent homelessness for asylum claimants on a cost-sharing basis;
    • $50 million over two years for Canada’s Foreign Credential Recognition Program, with a focus on residential construction to help skilled trades newcomers get more homes built;
    • New funding for affordable housing programs, including the Affordable Housing Fund and a new $1.5 billion Canada Rental Protection Fund;
    • The removal of the Goods and Services Tax on the construction of new rental buildings, including the construction of student residences built by public universities, public colleges, and public-school authorities; and
    • Launching the Blueprints for the Renters’ Bill of Rights and Home Buyers’ Bill of Rights to help protect renters from unfair practices and help make the process of buying a home fairer, simpler, and more transparent.
  • These actions complement immigration measures taken to reduce the volume of temporary and permanent residents:
    • In March 2024, the Government of Canada announced a commitment to decrease the number of temporary residents from 6.5% of Canada’s total population down to 5% by 2026. To reach the reduction in temporary residents, a series of immigration measures have been introduced (e.g., introduction of international student caps).
    • In the 2025-2027 Immigration Levels Plan, released on October 24, 2024, the Government of Canada announced a pause in Canada’s population growth for two years, before returning to growth of 0.8% in 2027. The Plan includes for the first time targets for both temporary residents and permanent residents’ admissions. It highlights the importance of ensuring a well-managed, responsive, and sustainable immigration system to help balance housing supply with housing demand.
  • In its mandate letter priorities from May 21, 2025, the federal government committed to both make housing more affordable and returning overall immigration rates to sustainable levels – while attracting the best talent in the world to help build our economy.

Build Canada Homes

Issue / question

What is Build Canada Homes?

Suggested response

  • The Government of Canada is stepping up with a bold approach to increase housing supply and has launched Build Canada Homes — a new federal agency that will build affordable housing at scale.
  • With an initial capital investment of $13 billion, Build Canada Homes will bring together financing and partnerships to streamline development timelines, leverage public lands, and reduce barriers to build affordable homes for low- and middle-income Canadians.
  • This new federal agency will harness public-private collaboration, deploy modern methods of construction, and catalyze the creation of an entirely new Canadian housing industry.
  • Build Canada Homes has a mandate to move quickly and will prioritize development on six federal sites to build 4,000 factory-built homes – with additional capacity of up to 45,000 units across its current portfolio.

Background

  • Build Canada Homes is a new federal agency that finances and builds large scale affordable housing developments.
  • It works primarily with non-market housing providers to deliver affordable housing options that serve a large segment of the working population, as well as students and seniors living on fixed income that are priced out of the market. Build Canada Homes also acts as a developer, building on land, or working with other partners to develop underutilized public land.
  • As it conducts these activities, Build Canada Homes will help transform Canada’s housing industry by generating demand for new and innovative methods of construction that reduce build time, cost per unit, or amount of resources (materials/workers) needed to get more homes built faster.
  • Build Canada Homes will partner on and lead developments of affordable housing projects, and by using public lands, take land costs out of the equation. Build Canada Homes will leverage sites already listed on the Canada Public Land Bank and other federal sites from across departments.
  • In its first six projects on federal land, Build Canada Homes will deploy a “direct-build” approach, overseeing and leading construction projects focused on affordable mixed-income communities. This first tranche of sites will be in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton.
  • To help protect existing affordable rental housing, the $1.5 billion Canada Rental Protection Fund will be launched under Build Canada Homes. This initiative will support the community housing sector in acquiring at-risk rental apartment buildings, ensuring they remain affordable over the long term. It also aligns with Build Canada Homes’ broader mandate to grow the supply of affordable and non-market housing – not only by building new homes, but also by preserving the ones on which Canadians already rely.
  • Build Canada Homes will deploy $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness. It will collaborate with key provincial, territorial, municipal, and Indigenous partners to pair these federal investments with employment and health care supports.
  • Build Canada Homes will partner with the Nunavut Housing Corporation to build over 700 public, affordable, and supportive housing units. Approximately 30% of the units are expected to be built off-site, using innovative construction methods such as factory-built housing.
  • What makes Build Canada Homes different is how it works:
    • Unlocking multi-year pipelines of projects through the portfolio approach,
    • Leveraging modern methods of construction such as factory-built housing, and
    • Building on public lands to deliver more affordable homes faster.
  • By combining flexible financing, access to land, and development expertise under one roof, Build Canada Homes will make it simpler and faster to get big projects off the ground. Introducing early federal financing will decrease project risk and incentivize private investment.
  • Build Canada Homes will act as a one-stop-shop for proponents at every phase of the development process, working in close partnership with developers, investors, manufacturers, other orders of government and Indigenous partners to get housing financed and built.

Housing Accelerator Fund

Issue / question

How will the Housing Accelerator Fund increase housing supply?

Suggested response

  • This government is investing $4.4 billion, through the Housing Accelerator Fund, to eliminate barriers to development and build more homes faster.
  • More than 200 communities across Canada are benefitting from this funding. For example, in Edmonton, the Fund has helped to streamline approvals by implementing an online tool that allows some homebuilders to apply for a development permit and start building on the same day.
  • This government is committed to delivering on this program. It is expected to lead to an estimated 800,000 permitted new homes in towns, cities, and Indigenous communities across Canada.

Background

  • The Housing Accelerator Fund (HAF) was announced as part of Budget 2022, with an initial $4 billion in funding (over five years) until 2026-27 and a target to fast-track permits for at least 100,000 housing units over the next three years and lead to the creation of over 800,000 permitted homes over the next decade. Budget 2024 announced an additional $400 million in funding (bringing the total to $4.4 billion) until 2027-28.
  • HAF encourages local governments to implement lasting initiatives such as growing housing supply faster than the historical average, increasing densification, speeding up approval times, tackling NIMBYism, establishing inclusionary zoning bylaws, and encouraging public transit-oriented development. The application window for the second round of funding was open over the summer of 2024. Most agreements have now been finalized and will enable at least 12,000 more housing units.
  • Incentive funding can be used for investments in HAF action plans, affordable housing, housing-related infrastructure, or community-related infrastructure that supports housing. The framework for determining the amount of incentive funding includes base and top-up funding and an affordable housing bonus.
  • The Government of Canada signed 241 agreements under the first and second rounds of funding. This includes two agreements between the governments of Canada and Quebec, with a total contribution of $992 million to accelerate the construction of residential units.
  • The 2024 Fall Economic Statement listed all the communities with HAF agreements from the first round and committed to developing a public progress tracker. Communities’ first annual progress reports were due between November 2024 and March 2025 and are being posted on Canada Mortgage and Housing Corporation’s website.
  • Top performing communities were eligible to receive additional funding, up to 10% of the value of their original agreement, from the initial round’s uncommitted funding. To be considered a top performer, communities met their unit forecasts, delivered on their HAF Action Plan commitments for the first year, and proposed additional initiatives to accelerate housing. Communities selected were announced in March 2025.
  • Based on successful applications to date, a list of 10 HAF best practices has been developed and was updated for Round 2. Municipalities are encouraged to align with these best practices when developing their plans.

Federal Lands Initiative

Issue / question

How is the Government of Canada’s Federal Lands Initiative leveraging federally owned land and properties to increase the supply of affordable, energy efficient and accessible housing?

Suggested response

  • The Government of Canada is investing over $318 million in the Federal Lands Initiative to help turn unused government land and buildings into affordable housing.
  • These federal properties can be sold to affordable housing providers at a discounted rate as low as $1, depending on the level of social benefits being delivered.
  • As of June 30, 2025, over $142 million in funding has been committed under the Federal Lands Initiative to support the creation of 4,899 new and 208 repaired housing units.

Background

  • The Federal Lands Initiative (FLI) is a $318.9 million fund that supports the transfer of surplus federal lands and buildings to eligible proponents. This is available at discounted to no cost to be developed or renovated for use as affordable housing. The discount on the property will depend on the level of social outcomes achieved by the winning proposal. Once transferred, the property will be developed or renovated into affordable, sustainable, accessible, and socially inclusive housing.
  • The FLI was launched in 2018 with an initial $200 million over 10 years, and a target of creating 4,000 units by making suitable properties available to selected proponents. Budget 2024 topped up the FLI with $112.6 million over five years with an additional $4.3 million in future years, with the investment expected to unlock a minimum of an additional 1,500 units, bringing the total to 5,500 new units.
  • The FLI facilitates subsidies for the transfer of federal lands to housing providers to encourage the development of sustainable, accessible, mixed-income, mixed-use developments, and communities. Surplus federal properties across Canada are made available to partners that repurpose them to provide housing at less-than-market rates. The partners receive the federal properties at a value somewhere between market value and $1. The difference between market value and transfer value represents the government’s contribution towards the provision of affordable housing.
  • Each housing project must meet the following National Housing Strategy requirements:
    • Affordability: 30% of units must have rents at less than 80% of local median market rents;
    • Energy efficiency: a minimum 25% reduction in energy consumption and greenhouse gas emissions compared to either national building codes or past performance; and
    • Accessibility: 20% of units must meet accessibility standards.
  • In addition, the Government of Canada created the Canada Land Bank, where the government publishes an inventory of federal properties that have been identified as suitable for housing development. There are currently 88 properties listed on the website that can support the construction of thousands of new homes; with work underway to identify additional federal properties.
  • Building on the success of FLI, the recent launch of Build Canada Homes will build affordable housing and catalyse a new Canadian housing industry. Build Canada Homes will bring all aspects of housing under one roof to make it simpler and faster to get projects off the ground. This includes streamlining construction on public lands by having access to the government’s land portfolio, including federal properties under the Canada Land Bank that are suitable for housing construction.

Canada Housing Infrastructure Fund

Issue / question

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

Suggested response

  • This government is making significant investments in critical infrastructure to directly support the construction of new homes and address the housing crisis.
  • The Canada Housing Infrastructure Fund is investing up to $6 billion for the construction and upgrading of infrastructure – including drinking water, wastewater, stormwater, and solid waste systems – that in turn supports the creation of new homes.
  • Funding will be provided to provinces and territories on the condition that they commit to key actions that increase housing supply by lowering the cost of construction and increasing density. Municipalities and Indigenous communities can also access funding to support pressing infrastructure needs to enable even more housing.
  • Under the agreements with provinces and territories, 20% of the allocation is to be directed to projects in rural, northern, or Indigenous communities.

Background

  • The Government of Canada put forward in Budget 2024 several key measures to cut red tape, build more homes, and help communities grow. The Budget announced the launch of a new Canada Housing Infrastructure Fund (CHIF) to accelerate the construction and upgrading of housing-enabling infrastructure relating to drinking water, wastewater, stormwater and solid waste infrastructure systems to support the construction of more homes.
  • The CHIF was launched in fall 2024 to provide up to $6 billion to municipalities, Indigenous communities and other eligible recipients to support pressing infrastructure needs that will directly create more housing, and to provinces and territories (PTs) through agreements to support long-term PT priorities while advancing federal housing objectives. The CHIF has a direct delivery stream and a provincial and territorial agreement stream.
  • To date, PT agreements have been signed with 10 provinces and territories, with two in active negotiations.
  • Allocation funding for those PTs that do not conclude an agreement will be transferred to the direct delivery stream.
  • Eligible applicants seeking support for pressing drinking water, wastewater, stormwater and solid waste infrastructure needs could apply to the Direct Delivery stream until March 31, 2025. In recognition of the unique infrastructure and housing needs and realities in Indigenous communities, Indigenous applicants had until the week of May 19, 2025, to submit their applications. At least 10% of direct delivery funding will be dedicated to Indigenous recipients.
  • The CHIF direct delivery intakes are now closed and received hundreds of applications from across the country. This speaks to the great need for critical water, wastewater, stormwater and solid waste infrastructure all across Canada.
  • Funding results will be communicated in writing directly to applicants, once decisions are made.

Housing and infrastructure in the Territories/North

Issue / question

How is the Government of Canada addressing the infrastructure gaps that are limiting housing and infrastructure development in the North?

Suggested response

  • This government recognizes the unique circumstances that rural and northern communities face and the importance of investments in northern infrastructure to improve housing stock, accelerate housing development, and meet the growing housing demand.
  • Over the next decade, investments of more than $500 million in the territories will be made through programs such as the Canada Housing Infrastructure Fund and the Canada Community-Building Fund.
  • Since 2015, total investments in the territories have exceeded $4 billion, supporting housing-enabling infrastructure, local infrastructure, resilient infrastructure, and efforts to solve homelessness and encampments.

Background

  • Since 2015-2016, Housing, Infrastructure and Communities Canada (HICC) has invested over $4 billion in infrastructure, housing, and homelessness projects across the Territories. This includes close to $1.66 billion for housing, including over $1 billion through the National Housing Strategy, as of June 2025. This investment is supporting over 6,000 new or repaired units, protecting over 3,000 community housing units, and supporting nearly 3,500 households. Additional investments have also been provided to support First Nations, Inuit and Métis infrastructure and housing needs.
  • Key issues impeding access to housing in the Territories include: aging facilities/public housing infrastructure, increased costs for operations and maintenance, an extremely tight rental housing market, lack of affordable housing, and public housing waitlists. According to Canada Mortgage and Housing Corporation’s 2023 Northern Housing Report, the proportion of Territorial households living in core housing need is above the national average of 7.7%:
    • 9.9% of households in the Yukon;
    • 11.4% of households in the Northwest Territories;
    • 40.5% of the population in Nunavut.
  • The Canada Infrastructure Bank is a formal partner on five projects across the Territories, including $10 million in investments to accelerate development work for two large projects in Nunavut (Kivalliq Hydro-Fibre Link and Grays Bay Road and Port project) and a $100 million investment in a project located in the Northwest Territories (Inuvialuit Energy Security Project).
  • Northern Canada faces needs and gaps in respect of core foundational infrastructure, including relative to the rest of Canada.
    • According to the 2020 Canada Core Public Infrastructure data, the total replacement cost for assets in poor and very poor condition are estimated to be $3.09 billion in the Yukon, $227.7 million in the Northwest Territories, and $108 million in Nunavut.
    • Inuit identified the need for $75.1 billion over 35 years for 115 projects in order to help close the infrastructure gap in Inuit Nunangat.
    • In their “Closing the Infrastructure Gap by 2030” report, the Assembly of First Nations identified the need for $17.8 billion to address the infrastructure gap in the Northwest Territories and $10.6 billion to cover the needs of 18 First Nations in Yukon.
    • The North Slave Métis Alliance and the Northwest Territory Métis Nation have also cited the need to address critical infrastructure.
  • Existing infrastructure is operating close to or beyond useful lifespan and is more vulnerable to climate change and Northern climate conditions. The lack of basic infrastructure as well as the impacts of climate (e.g., drought, melting permafrost), short building seasons, difficult access to material supply, and a limited labour supply all contribute to increased costs to build, maintain and operate housing and infrastructure.

Federal Homelessness Programming

Issue / question

What is the Government of Canada doing to address homelessness?

Suggested response

  • This government is working to prevent and reduce homelessness in our communities by investing $5 billion in Reaching Home. Since 2019, the program has helped over 110,000 people attain more stable housing and helped over 197,000 people with homelessness prevention services.
  • This is complemented by investments to address unsheltered homelessness and Veteran homelessness.
  • Acknowledging that more needs to be done, this government will continue to work with communities, Indigenous partners, service providers and all levels of government to reduce homelessness.

Background

  • Reaching Home: Canada’s Homelessness Strategy: Launched in 2019 as part of the National Housing Strategy, this program is now a $5 billion investment over nine years, through 2027-28 (including an investment of $1 billion through Budget 2024). Reaching Home provides funding to specific communities through the Designated Communities, Indigenous Homelessness, Rural and Remote Homelessness and Territorial Homelessness streams.
  • As of September 2025, Reaching Home has supported over 9,900 projects since April 2019. As a result:
    • Nearly 198,000 people received prevention services such as short-term rental assistance or landlord mediation;
    • Over 110,000 people have been assisted in attaining more stable housing;
    • Nearly 48,000 people began receiving income assistance; and
    • Over 18,000 people started new paid employment.
  • The Indigenous Homelessness funding stream allocates funding directly to off reserve organizations that provide culturally appropriate services to Indigenous people experiencing homelessness. The Distinctions-based Approaches stream provides dedicated funding to address specific needs of First Nations, Inuit and Métis individuals.
  • Through Budget 2022, $18.1 million was invested in Action Research on Chronic Homelessness through 2024-25. Project extensions have been approved for three projects, allowing their work to continue through 2025-26.
  • Veteran Homelessness Program: The Services and Supports Stream provides up to $72.9 million in funding for rent supplements and wrap-around services and the Capacity Building Stream provides up to $6.2 million in funding to support research on Veteran homelessness and capacity building. 34 projects are in place.
  • Unsheltered Homelessness and Encampments Initiative: Budget 2024 announced $250 million over two years through 2025-26 to address the urgent issue of unsheltered homelessness. Cost-matched funding agreements have been signed with eight provinces, the three territories, as well as with municipalities in Ontario and Saskatchewan.
  • Homelessness Reduction Innovation Fund: As part of the Budget 2024 investment in Reaching Home, $50 million is allocated to help communities develop innovative projects to prevent homelessness and accelerate new homes for people experiencing homelessness. The Canadian Alliance to End Homelessness will distribute $45 million to communities and has launched its first two calls for proposals to select projects. The Government of Canada and the Government of Quebec will collaborate on strategies to implement this funding in Quebec.

National Housing Strategy

Issue / question

What are the key accomplishments of the National Housing Strategy?

Suggested response

  • Since 2017, the Government of Canada has provided more than $115 billion in funding through the National Housing Strategy so more people living in Canada have access to safe, affordable and inclusive housing.
  • National Housing Strategy programs, like the Apartment Construction Loan Program, the Affordable Housing Fund, and the Co-op Housing Development Program, have committed over $69 billion to support the creation of over 170,000 new units and the repair of over 322,000 units.
  • To date, more than $4.4 billion in federal funding has been committed through bilateral agreements that is delivered by the provinces and territories. As of September 30, 2024, this has supported the repair of over 146,000 units of social housing and the maintenance of over 314,000 units of social housing.

Background

  • Launched in 2017, the National Housing Strategy (NHS) is currently a 10-year, $115+ billion plan to give more people in Canada a place to call home.
  • The NHS sets ambitious targets, including to reduce chronic homelessness in Canada by 50%, and take as many as 580,000 households out of housing need. The NHS is also targeting the creation of up to 240,000 new housing units and 300,000 repaired or renewed housing units.
  • The NHS includes a range of complementary programs and initiatives that address diverse needs across the entire housing continuum such as:
    • The Apartment Construction Loan Program provides $55 billion in loans to boost the construction of purpose-built rental.
    • The Affordable Housing Fund provides almost $16 billion in loans and contributions for new and repaired affordable and community housing. This includes a $1.5 billion top-up in loans for the Community Housing Sub-Stream supporting the creation of more than 5,000 new units.
    • Reaching Home: Canada’s Homelessness Strategy provides $5 billion in funding to urban, Indigenous, rural and remote communities to help them address their local homelessness needs.
    • The Co-op Housing Development Program provides $1.5 billion in loans and contributions to support the development of new rental co-op housing.
    • The Housing Accelerator Fund provides $4.4 billion in direct funding to municipalities that take action reduce the restrictive bureaucracy that will help boost housing supply.
  • Through the NHS, the federal government also has bilateral agreements with all provinces and territories totaling approximately $15.7 billion in cost-matched funding from 2018/19 to 2027/28. This includes:
    • the $8.6 billion Canada Community Housing Initiative
    • the $4.8 billion Canada Housing Benefit
    • the $2.2 billion Provinces and Territories Priorities Housing Initiative
    • $300 million (federal funding, not cost-matched) in Northern Funding.
  • The NHS respects the Government of Canada’s commitment to working on a nation-to-nation, Inuit-to-Crown, government-to-government basis with Indigenous peoples, which is why Indigenous Services Canada, with support from Canada Mortgage and Housing Corporation, engaged with First Nations, Métis Nation, and Inuit partners to develop distinctions-based housing strategies.
  • The NHS is anchored in the National Housing Strategy Act, which requires the Minister of Housing to develop and maintain a national housing strategy.

Canada Infrastructure Bank Involvement in Housing and Retrofits

Issue / question

How is the Canada Infrastructure Bank supporting housing development and retrofits?

Suggested response

  • Through its Infrastructure for Housing Initiative, the Canada Infrastructure Bank (CIB) is investing in essential infrastructure—like water, wastewater, transit, and district energy—that enables new housing construction. The CIB is working with municipalities, provinces, and the private sector to enable up to 100,000 new homes across Canada.
  • The CIB’s Building Retrofits Initiative helps building owners make energy-efficient upgrades sooner, reducing emissions and cutting energy costs for both landlords and tenants.
  • CIB funding for retrofit projects includes tenant protection measures—rent can’t rise beyond provincial guidelines, and increased utility costs from the renovations can’t be passed on to tenants.
  • Together, these measures ensure retrofits support Canada’s climate goals while keeping housing affordable for Canadians.

Background

Housing:

  • On March 26, 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 are expected to be primarily last-mile, and net-new large-scale enabling infrastructure in areas such as:
    • Water: including water, wastewater, stormwater and conveyance;
    • Transportation: roads, bridges and related civil work;
    • Transit: electric buses, light-rail transit, stations and terminals; and
    • Clean power: district energy, electricity distribution and storage.
  • Under this initiative the CIB partners 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, is combined with the CIB’s concessional financing to provide a loan at a lower rate than what is available through traditional financing avenues. The loans will be repaid using specific revenue streams that are expected to grow as housing growth materializes (e.g., water ratepayers).
  • As of September 2025, the CIB has invested in one IHI project: up to $140 million toward water and wastewater infrastructure in Brandon and small communities in Southeast Manitoba, to strengthen and improve water and wastewater infrastructure in some of the province’s fastest growing communities, and to support future developments of approximately 15,000 new housing units.
  • Additionally, $2 million was committed in April 2024 under the CIB’s accelerator funding program to support analysis and assessment work toward the redevelopment of the Namur-Hippodrome area of Montréal, which could provide more than 10,000 housing units. This work will include determining efficient ways of delivering public transportation, power, and water; how to best deliver an eco-friendly project; and how to ensure proper integration into the existing subterranean infrastructure.
  • Prior to the launch of the IHI, the CIB had already announced financing to projects that will spur new housing, including:
    • A $7.9 million investment in the Netmizaaggamig Nishnaabeg community of Northern Ontario to help build critical infrastructure (e.g., electrical, broadband and water services) for the establishment 0f fully serviced building lots for approximately 55 multi-family affordable and social housing units (announced in January 2023).
    • $15 million invested toward significant road upgrades in the Enoch Cree Nation Reserve in Alberta which will also support investments in other social and community infrastructure initiatives (announced in August 2023).
    • Clean energy investments of $135 million in the Markham District Energy project to help expand future district energy systems and support future housing in the City of Markham (announced in November 2022).
    • $175 million in a district energy expansion project in Richmond, British Columbia. The project will enable expansion to more than 170 new residential and mixed-use commercial development sites in the area by 2050 (announced in August 2019).

Retrofits:

  • The CIB’s Building Retrofits Initiative (BRI) provides financing for capital costs of energy retrofits, using energy savings, efficiencies, and operating cost savings for repayment. Private-sector buildings eligible for funding under the BRI include commercial, industrial, and multi-unit residential buildings. The CIB’s financing is only available for building renovation projects that include decarbonization retrofits. Ultimately, energy savings, efficiencies, and operating cost savings are passed on to building owners and tenants.
  • In 2023-24, stakeholders expressed concern to the CIB and the Minister of Housing, Infrastructure and Communities that the CIB’s $130 million investment in the Avenue Living Asset Management retrofit project in Alberta and Saskatchewan could lead to renovictions and increased rental prices for tenants. The CIB has been working with Avenue Living and concerned stakeholders to mitigate these concerns. It has also adjusted its standard terms for building retrofits to avoid similar situations for future projects.
  • The CIB’s investment will finance retrofits at 240 properties (totalling more than 6,400 residential units) within Avenue Living’s portfolio.
  • Another BRI project involving residential units is the GDI Integrated Facility Services Retrofits. Announced in July 2024, the CIB’s $100 million investment will provide opportunities for GDI clients (i.e., building owners and operators of commercial, institutional and multi-residential buildings across Canada) to upgrade aging infrastructure with new mechanical and electrical systems, clean and renewable power sources and energy storage facilities.

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