14.09.2025
Why create Build Canada Homes when other federal organizations exist to support 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.
What is considered affordable and deeply affordable for Build Canada Homes?
Build Canada Homes recognizes that housing should cost less than 30% of household's before-tax income and will seek to build homes at prices that reflect the realities of different regions across Canada and across the income spectrum.
Affordable Housing
Housing is considered affordable when it costs less than 30% of a household's before-tax income, based on the median household income in a given region.
This type of housing is aimed at middle-income households, such as essential workers (e.g., construction workers, care providers, teachers, nurses, etc.).
It reflects what people in the middle of the income spectrum can reasonably afford in their local area.
Deeply Affordable Housing
Housing is considered deeply affordable when it costs less than 30% of a household's before-tax income, based on the median income of low- or very-low-income households in a region.
This type of housing supports those with limited or fixed incomes, such as minimum wage earners, low-income seniors, or people receiving social assistance.
It ensures that even the most economically vulnerable can access safe and stable housing, including people experiencing homelessness through housing first approaches and supportive housing options.
How will Build Canada Homes support Indigenous housing on and off reserve?
Indigenous communities face significant affordable housing needs. Build Canada Homes will work with Indigenous partners to drive, long-term affordable housing solutions that respect Indigenous leadership and knowledge and complement other federal and Indigenous-led housing investments, including on- and off-reserve Indigenous housing programs and distinctions-based housing strategies.
Implementation of Build Canada Homes will respect the Government of Canada's constitutional and policy commitments to upholding the honour of the Crown, rights recognition, and furthering relationships with Indigenous peoples. It will leverage opportunities to advance reconciliation and build in Duty to Consult and other requirements as appropriate, such as section 82 of the Impact Assessment Act, which includes an assessment of effects to the health and socio-economic impacts to Indigenous peoples. Ongoing engagement with Indigenous partners will help inform the evolving design of Build Canada Homes and its approach to advancing Indigenous housing.
How will Build Canada Homes help people who are experiencing or at risk of homelessness?
By increasing the availability of affordable and deeply affordable housing, Build Canada Homes will help create more options to help people exit homelessness, and prevent them from experiencing homelessness in the first place.
In particular, Build Canada Homes will deploy $1 billion to build transitional and supportive housing. It will collaborate with key provincial, territorial, municipal, and Indigenous partners to pair these federal investments with employment and health care supports.
Who has been engaged so far on the design of Build Canada Homes?
HICC has undertaken broad engagement and gathered insights from over 100 interested partners and stakeholders including but not limited to:
- Project proponents
- Private and community housing providers
- Developers and manufacturers leveraging modern methods of construction such as factory-built housing
- Provincial, territorial and municipal governments
- Indigenous governments and partners
- Financial institutions
- Academics and research organizations
- Institutional investors and other sources of private capital
A market sounding was also recently conducted via the HICC website and over 600 submissions were received. Engagement activities will continue, and feedback taken onboard to inform the design and implementation of Build Canada Homes.
How will Build Canada Homes maintain these new affordable homes for the long-term?
Ensuring Build Canada Homes invests in housing that is owned and operated by non-market housing providers is key for ensuring homes are affordable for the long term. These mission driven organizations will do all they can to deliver affordability for their tenants.
Keeping public land under public ownership by leasing rather than selling is also a key measure that can help ensure long-term affordability, by ensuring the land continues to be used for a public purpose.
Additionally, Build Canada Homes will partner with the private sector on mixed-market housing projects that prioritize affordable housing. This approach is essential to making projects financially viable over the long term, while ensuring that affordable homes remain truly affordable. By blending market and non-market housing, Build Canada Homes can unlock new sources of capital, reduce reliance on public subsidies, and create inclusive communities that are built to last.
How are small, rural, northern or Indigenous communities going to access this funding, if it's prioritizing portfolios/large projects?
Smaller organizations will be encouraged to team up to create larger project portfolios, and provinces and territories will play a key role in bringing together projects from across their jurisdictions, including rural and remote areas.
Build Canada Homes' Investment policy, which will provide details on the types of projects and strategies Build Canada homes will fund, will ensure these communities are well served by the Build Canada Homes model.
How can I apply for funding under Build Canada Homes? / Who do I talk to at Build Canada Homes about my project?
Build Canada Homes will have targeted engagements with provinces and territories, Indigenous governing organizations and high-capacity, non-market housing providers to identify early investment opportunities and shovel-ready projects.
In the coming weeks, Build Canada Homes will release its first investment framework that details the types of investments it will prioritize, and form the basis for project intakes and funding decisions. The framework will build on the market sounding guide that was released in August and garnered more than 600 responses.
Proponents are encouraged to start thinking about how large-scale projects in their portfolio could align with early investment opportunities under Build Canada Homes. In the interim while investment details are being finalized, questions can be sent to BCHInquiries-DemandesMC@infc.gc.ca.
Canada is facing a severe housing shortage. While some cities have seen progress, far too many people—especially younger Canadians—still struggle to find homes within their reach. In response, the federal government is launching a bold plan with record-level investments to dramatically expand housing supply.
Prime Minister Mark Carney today announced Build Canada Homes, a new federal agency tasked with building affordable housing on a large scale. Its work will target homelessness by developing transitional and supportive housing in partnership with provinces, territories, municipalities, and Indigenous communities. The agency will also deliver deeply affordable and community housing for low-income families and collaborate with private developers to create affordable options for middle-class Canadians.
Build Canada Homes is designed to overhaul how governments and the private sector work together, using modern construction methods to spark the growth of a whole new housing industry in Canada. It will unlock public land, provide flexible financial tools, draw in private capital, facilitate large-scale projects, and support advanced manufacturers to produce the homes Canadians need.
The federal government will contribute land, speed up approvals, and offer strong incentives, while private partners bring building capacity, innovation, supply chains, and financing. Though its primary focus is non-market housing, Build Canada Homes will deliver a mix of housing types as part of a nationwide push to double construction, restore affordability, and reduce homelessness.
Three core pillars of the plan
1. Large-scale, rapid construction
Build Canada Homes will partner with industry, other governments, and Indigenous communities to deliver housing quickly and at scale. Acting as a federal “one-stop shop” for affordable housing, it will simplify access to the resources builders need. With an initial $13 billion in funding, the agency will finance projects, provide land, and help major developments get off the ground. By using public land, it will remove land costs from projects and reduce risk for private builders.
To speed up development on federal property, Canada Lands Company will move under the Build Canada Homes umbrella. This shift gives the agency access to 88 federally owned sites—covering about 463 hectares, roughly the size of downtown Ottawa—and ministers have been instructed to identify more federal land suitable for housing.
2. Modern, efficient building methods
Build Canada Homes will invest in innovative construction technologies to build faster and more sustainably all year round. Factory-built, modular, and mass-timber construction will be a priority. Through bulk purchasing and long-term financing, the agency aims to cut build times by up to 50%, reduce costs by as much as 20%, and lower construction emissions by about 20%. Low-carbon materials, energy-efficient designs, and advanced manufacturing will help create a new housing industry that is quicker, cleaner, and more cost-effective.
3. Strengthening Canadian supply chains
Under a new “Buy Canadian” policy, Build Canada Homes will favour projects using Canadian lumber, steel, aluminum, and other domestically sourced materials. This will reinforce home-grown industries, build up supply chains, and create well-paid jobs across the country, ensuring new homes are built with maximum use of Canadian resources.
Leadership
To lead this ambitious effort, the Prime Minister has appointed Ana Bailão as CEO of Build Canada Homes. A veteran housing advocate, Bailão served more than a decade on Toronto City Council—acting as Deputy Mayor, Chair of the Planning and Housing Committee, and a board member at Toronto Community Housing—where she launched the Housing Now initiative to build homes on city-owned land. Most recently, she headed Affordable Housing & Public Affairs at private developer Dream Unlimited Corporation.
Build Canada Homes is designed to act fast. To demonstrate that urgency, the Prime Minister unveiled the agency’s first four projects and programs:
Factory-built housing on federal land: Using sites from Canada Lands Company, Build Canada Homes will begin with six locations—Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton—to deliver 4,000 factory-built homes, with capacity for up to 45,000 more units in its wider portfolio. The agency will take a “direct-build” approach, leading and managing these mixed-income community developments itself.
Protecting existing affordable rentals: A new $1.5 billion Canada Rental Protection Fund under Build Canada Homes will help community housing providers purchase at-risk rental buildings and keep them affordable for the long term. This complements the agency’s broader mission to expand non-market housing by preserving as well as building homes Canadians rely on.
Transitional and supportive housing: Build Canada Homes will invest $1 billion to develop housing for people experiencing or at risk of homelessness. These projects will be coordinated with provinces, territories, municipalities, and Indigenous partners, and paired with employment and health supports.
Indigenous housing in Nunavut: In partnership with the Nunavut Housing Corporation, more than 700 public, affordable, and supportive units will be built, about 30 percent of them off-site using factory-built and other innovative construction methods.
More details on these initiatives will follow in the coming months. In the meantime, Build Canada Homes will immediately begin working with provinces, territories, cities, Indigenous communities, investors, and proven builders to bring additional projects forward this year.
The agency’s goal is not just to increase housing supply but to create a new Canadian housing industry—one that improves construction productivity, uses Canadian materials, generates well-paid jobs throughout the supply chain, and positions Canada as a global leader in modern homebuilding. By providing early financing, land, and certainty, Build Canada Homes will give private builders the confidence to build at speed and scale. Additional measures to reduce builder costs and attract private capital will be outlined in Budget 2025.
Quick facts
Launch: Build Canada Homes (BCH) begins today as a Special Operating Agency within Housing, Infrastructure and Communities Canada (HICC), which sets its investment policy and governance.
Purpose: BCH streamlines federal housing programs and, over the fall, will incubate within government before transitioning into a standalone agency reporting to the Minister of Housing and Infrastructure in the new year. Its early performance will guide decisions on long-term funding.
Complementary measures: BCH is one tool among many. The government has also tabled Bill C-4 to eliminate GST for first-time buyers on new homes up to $1 million and reduce GST for homes between $1 million and $1.5 million, saving first-time buyers up to $50,000.
Partnerships: Alongside BCH, the Canada Mortgage and Housing Corporation will continue its existing programs, such as the Apartment Construction Loan Program and Mortgage Loan Insurance.
Land strategy: Ministerial responsibility for Canada Lands Company Ltd. has been transferred to the Minister of Housing and Infrastructure, enabling BCH to access federal land holdings and expertise to speed up affordable housing delivery nationwide.
Canada’s housing challenge is too large for “business as usual.” Build Canada Homes represents a bold new approach—combining public land, flexible financing, private capital, and modern manufacturing to build affordable homes at scale.
Its objectives are clear:
- Build affordable homes.
- Finance affordable homes.
- Catalyze a new housing industry.
Its mandate:
- Increase the share of non-market, mission-driven housing for low- and middle-income households.
- Create conditions for a high-capacity, growth-oriented non-market sector less reliant on ongoing subsidies.
- Generate predictable demand for Canadian factory-built housing to reduce construction time and costs.
Currently operating within HICC, Build Canada Homes combines flexible financing, land access, and development expertise under one roof, unlocking multi-year project pipelines, leveraging modern building methods, and using public lands to deliver affordable homes faster. This integrated approach lowers project risk and encourages private investment.
Affordable vs. deeply affordable housing
Affordable housing: Costs less than 30 percent of a household’s before-tax income, based on median local incomes—aimed at middle-income earners such as teachers, nurses, and care providers.
Deeply affordable housing: Costs less than 30 percent of the before-tax income of low- or very-low-income households—supporting minimum-wage earners, low-income seniors, and those on social assistance, including people exiting homelessness.
Deeply Affordable Housing
Housing is considered deeply affordable when it costs less than 30 percent of a household’s pre-tax income, calculated against the median income of low- or very-low-income households in each region. This type of housing is aimed at people with limited or fixed incomes—such as minimum-wage earners, low-income seniors, or those receiving social assistance. It ensures the most economically vulnerable can access safe, stable homes, including individuals leaving homelessness through Housing First and other supportive housing programs.
Supporting Indigenous Housing On and Off Reserve
Indigenous communities face urgent and distinct housing needs. Build Canada Homes will work directly with Indigenous partners to deliver long-term, affordable solutions that reflect Indigenous leadership and knowledge. Its efforts will complement other federal and Indigenous-led housing initiatives, both on and off reserve, including distinctions-based housing strategies.
Implementation will respect Canada’s constitutional and policy obligations: upholding the honour of the Crown, recognizing rights, and deepening relationships with Indigenous peoples. This includes advancing reconciliation and meeting legal requirements such as Duty to Consult and section 82 of the Impact Assessment Act, which assesses health and socio-economic impacts on Indigenous peoples. Ongoing dialogue with Indigenous partners will guide how Build Canada Homes evolves and how it supports Indigenous housing priorities.
Helping People Experiencing or at Risk of Homelessness
By expanding the supply of affordable and deeply affordable housing, Build Canada Homes will create more pathways out of homelessness and prevent people from becoming homeless in the first place. It will invest $1 billion in transitional and supportive housing and work with provincial, territorial, municipal, and Indigenous partners to link these projects with employment and health-care supports.
Engagement to Date
Housing, Infrastructure and Communities Canada (HICC) has already engaged more than 100 stakeholders, including:
- Project proponents
- Private and community housing providers
- Developers and manufacturers using factory-built and other modern construction methods
- Provincial, territorial, and municipal governments
- Indigenous governments and partners
- Financial institutions
- Academics and research organizations
- Institutional investors and other private capital sources
A market-sounding exercise on HICC’s website attracted more than 600 submissions. Engagement will continue, and feedback will inform Build Canada Homes’ design and rollout.
Ensuring Long-Term Affordability
To keep homes affordable for decades, Build Canada Homes will prioritize investments in housing owned and managed by non-market providers. These mission-driven organizations are dedicated to maintaining affordability for tenants. Retaining public ownership of land—leasing instead of selling—is another way to protect long-term affordability by keeping land dedicated to public purposes.
The agency will also partner with the private sector on mixed-market developments where affordable housing is the focus. This blended approach makes projects financially viable, reduces dependence on ongoing public subsidies, and creates inclusive communities designed to last.
Access for Small, Rural, Northern or Indigenous Communities
Although Build Canada Homes is geared to large project portfolios, smaller organizations will be encouraged to collaborate to form bigger proposals. Provinces and territories will play a central role in bundling projects from rural and remote areas to ensure they benefit from Build Canada Homes’ funding model. The forthcoming Investment Policy will outline the types of projects and strategies the agency will support, including those serving smaller or remote communities.
Applying for Funding
Build Canada Homes will soon publish its first Investment Framework, detailing the types of projects it will prioritize and how funding decisions will be made. This framework will build on the August market-sounding exercise, which received more than 600 responses.
In the meantime, the agency is holding targeted discussions with provinces, territories, Indigenous governing bodies, and high-capacity non-market housing providers to identify early investment opportunities and shovel-ready projects.
Potential proponents should start planning how their large-scale projects could align with Build Canada Homes’ early investments. While the framework is being finalized, inquiries can be sent to BCHInquiries-DemandesMC@infc.gc.ca
Links
https://www.pm.gc.ca/en/news/news-releases/2025/09/14/prime-minister-carney-launches-build-canada-homes
https://housing-infrastructure.canada.ca/bch-mc/about-apropos-eng.html
https://housing-infrastructure.canada.ca/bch-mc/index-eng.html