Build more houses, faster | Prime Minister of Canada

Right now in cities across the country, it’s too difficult to build the housing we need, especially affordable housing. Housing policies are often barriers to delivering results, and many Canadians – from young families to seniors and newcomers – struggle to find an affordable place to call home. It is clear that we need to accelerate change to make the system work for all Canadians.

Prime Minister Justin Trudeau was in Guelph, Ontario today to launch the Housing Acceleration Fund (HAF), a $4 billion initiative that will provide funding to local governments to accelerate the construction of 100,000 new homes across Canada. Local governments are now being asked to develop innovative action plans, in line with the flexible criteria, to remove barriers to building more homes, faster.

The Fund will help cities and Indigenous governments unlock new housing supply by accelerating development and approvals, such as fixing outdated permit systems, introducing zoning reforms to increase density or promoting development at proximity to public transport. Local governments are encouraged to think big and innovate in their approaches. They could speed up project timelines, allow for increased housing density, encourage affordable housing, and more. The Fund will provide seed funding to support implementation, as well as additional funding once results are achieved.

Over the next decade, the Government of Canada aims to double the rate of housing construction to make housing more affordable. Building more housing, including affordable housing, is key to making life more affordable and building an economy that works for all Canadians. When we work together at all levels of government, we can build a better future for the middle class and those working hard to join it.

Estimate

“Canada has the fastest growing population in the G7, but our housing supply has not kept up with demand. The Housing Acceleration Fund will help local governments cut red tape and backlogs, build the homes we need, and give more people in Canada a safe and affordable place to call home. We will continue to work to make life more affordable and create stronger, more prosperous communities from coast to coast.

“The Housing Accelerator Fund is a bold new initiative to address Canada’s pressing housing need. We recognize that the key to increasing housing affordability is to increase the supply of housing available to Canadians. In partnership with local governments, this fund will allow us to create long-term systemic change in our housing system and have a tangible impact on increasing housing supply. Through this initiative, our government is helping more Canadians access a home that meets their needs and affords them. This is an important step towards building housing faster in our cities and ensuring that everyone has a safe and affordable place to call home.

Fast facts

• The application portal for the Housing Acceleration Fund (HAF) will open in June. Local governments are encouraged to begin preparing their proposed action plans today. A complete list of eligible system reforms is available on the Canada Mortgage and Housing Corporation website.
• The FHA is a $4 billion initiative of the Government of Canada that will run until 2026-2027. It was announced in Budget 2022, along with other initiatives to make housing more affordable and accessible for Canadians, including:
  • Investing $1.5 billion to launch a third round of the Rapid Housing Initiative and create at least 4,500 additional affordable housing units across Canada, with 25% of investments going to women-focused housing projects;
  • Launched a new tax-free First Home Savings Account to allow Canadians to save up to $40,000 tax-free to help them buy their first home;
  • Doubling the First-Time Home Buyers Tax Credit to provide up to $1,500 in direct support to homebuyers to offset closing costs associated with buying a first home;
  • Launched a $200 million stream under the Affordable Housing Innovation Fund to develop and expand rent-to-own projects.
• To guide the design and mechanism of the HAF, the federal government sought feedback from Canadians and consulted with stakeholders throughout 2022. Consultations with Indigenous communities and organizations are ongoing.
• Local governments interested in applying for the HAF will need to meet program requirements and submit an action plan as part of their application. The action plan should detail the local government’s commitment to a goal of growth in housing supply; alignment with federal priorities of building dense, affordable, inclusive and diverse communities; and the initiatives they plan to undertake to increase and accelerate the supply of housing in their communities. Where there is no authority at the municipal level, a regional district, province or territory may also submit an application to the HAF. Support can also be provided to jurisdictions requesting assistance due to capacity issues.
• The Government of Canada will negotiate an agreement with Quebec to ensure that municipalities in the province can access the program while respecting the laws of the province.
• The FHA is part of a larger federal government package of measures to support housing creation under Canada’s National Housing Strategy (NHS), a more than $82 billion plan that will is already committed to creating and repairing more than 400,000 units. The progress of programs and initiatives across the NHS is updated quarterly at www.placetocallhome.ca. THE Map of Housing Finance Initiatives shows affordable housing projects that have been developed by the NHS.

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