Feds announce $4B fund aiming to build more homes, faster
March 22, 2023 | By Adam Freill
The Housing Accelerator Fund, launching this summer, will provide money for local governments to fast track the creation of 100,000 new homes across Canada.
The federal government has launched a $4 billion initiative aimed at helping Canadian municipalities build more housing. Citing a particular need for affordable housing, Prime Minister Justin Trudeau announced the launch of the Housing Accelerator Fund (HAF) during a stop in Guelph, Ont.
We’re funding local #governments for local solutions that:
➡️ remove barriers to #housing supply
➡️ accelerate the growth of supply
➡️ support development of communities✅Find out more: https://t.co/J7pUSFzDN3 pic.twitter.com/NXTKlKbrAf
— CMHC (@CMHC_ca) March 17, 2023
The program, first announced in Budget 2022, will launch this summer and run until 2026-27, and it aims to provide funding for local governments to fast track the creation of 100,000 new homes across Canada.
The fund will help cities, towns, and Indigenous governments unlock new housing supply by speeding up development and approvals, like fixing out-of-date permitting systems, introducing zoning reforms to build more density, or incentivizing development close to public transit.
“We recognize that the key to increasing housing affordability is to boost the supply of homes available to Canadians,” said Ahmed Hussen, Minister of Housing and Diversity and Inclusion. “By partnering with local governments, this fund will enable us to create long-term systemic changes in our housing system and make a tangible impact in increasing housing supply.”
The federal government says it is encouraging local governments to think big and be innovative in their approaches. The fund will provide upfront funding to support implementation of initiatives that accelerate project timelines, allow for increased housing density, encourage affordable housing units, and more. Additional funds will also be available upon delivering results.
“Canada has the fastest growing population in the G7, but our housing supply hasn’t kept up with demand,” stated Trudeau. “The Housing Accelerator Fund will help local governments cut red tape and backlogs, build the housing we need, and give more people in Canada a safe and affordable place to call home.”
Over the next decade, the Government of Canada aims to double the rate of housing construction to make housing more affordable. The HAF application portal will open in June. A full list of eligible system reforms is available on the website of the Canada Mortgage and Housing Corporation.
