In a series of announcements in late January, the Canadian Mortgage and Housing Corporation (CMHC) announced various critical funding and initiatives targeting the housing crisis across Ontario. These investments, which span several programs under the National Housing Strategy (NHS), prioritize the construction and repair of affordable homes for diverse communities, including those in urgent need. With a combined total investment of over $2.23 billion, the initiatives are set to address pressing housing challenges through innovative programs and collaborative agreements with municipalities and housing providers.
National Housing Strategy (NHS) Grant: $2.1 Billion to Build and Repair 22,417 Homes
On January 26, 2025, the federal government announced over $2.1 billion in contributions and low-cost loans to support the construction and repair of 22,417 homes across Ontario. The funding, distributed through various NHS initiatives, will target communities most in need, ensuring affordable and sustainable housing for vulnerable populations.
Funding Breakdown:
Affordable Housing Fund (AHF): $305.7 million in loans and $129.6 million in contributions for 38 projects, creating 2,319 new units and repairing 1,047 units.
Affordable Housing Innovation Fund (AHIF): $118,750 in loans and $96.3 million in contributions for seven projects, creating 3,671 new units.
Apartment Construction Loan Program (ACLP): $1.44 billion in loans for 15 projects, creating 3,306 new rental units with affordability conditions.
Canada Greener Affordable Housing (CGAH): $7.9 million in loans and $38.8 million in contributions for 161 projects, repairing 10,615 units.
Rapid Housing Initiative (RHI): $85.8 million in contributions for 11 projects, creating 246 new units and repairing 45 units.
Federal Lands Initiative (FLI): $9.9 million in contributions for two projects, creating 1,168 new units.
The NHS funding will benefit low-income individuals, seniors, Indigenous Peoples, veterans, people with disabilities, and those at risk of homelessness. The funded projects will focus on rapid construction, retrofitting existing units for energy efficiency, and increasing the supply of purpose-built rental housing.
Housing Accelerator Fund (HAF) Grants: $138 Million for 23 Municipalities
On January 27, 2025, the federal government announced nearly $138 million in funding under the second round of the Housing Accelerator Fund (HAF) to 23 municipalities across Ontario. This investment aims to fast-track the construction of over 4,200 homes within three years, leading to an estimated 44,700 homes over the next decade.
The funding will go to 23 municipalities and communities:
City of Sault Ste. Marie
City of Greater Sudbury
City of North Bay
Town of Saugeen Shores
Loyalist Township
Town of Whitchurch-Stouffville
City of Peterborough
Town of Carleton Place
The Town of Georgina
City of St. Thomas
Municipality of Mississippi Mills
Caledon
City of Belleville
Municipality of Middlesex Centre
Orillia
The Corporation of the Municipality of Strathroy-Caradoc
The Corporation of the Municipality of Brockton
Town of Espanola
Seguin Township
The Municipality of North Middlesex
Lucan Biddulph
Temagami First Nation
Ginoogaming First Nation
HAF requires participating municipalities to develop action plans addressing zoning barriers, streamlining permitting, and allowing for greater housing density. The funding will be distributed in phases, rewarding municipalities that meet their housing targets. These initiatives aim to improve housing supply near transit hubs and educational institutions, promoting affordability and accessibility.
Housing Accelerator Fund (HAF) Grant for Greater Sudbury: $16 Million Investment
Also announced on January 27, 2025, Greater Sudbury will receive $16 million under the HAF to support the construction of 495 homes over three years, contributing to 4,250 homes over the next decade.
The action plan for Greater Sudbury includes:
Zoning Reform: Amend zoning policies to allow up to four units as-of-right on residential lots.
Affordable Housing Initiatives: Enhance the Affordable Housing Community Improvement Plan, adding a “concierge” position to assist developers.
Land Development: Accelerate preparation and disposal of city-owned land for affordable housing.
Cost Reductions: Exempt or reduce development charges for accessory dwelling units and multiplexes.
Residential Land Strategy: Align zoned land availability with servicing requirements to support long-term housing development.
Background
The Housing Accelerator Fund (HAF) is a $4.4 billion initiative launched in March 2023 to fast-track home construction by helping municipalities speed up approvals and remove zoning barriers. Budget 2024 added $400 million to further encourage rapid housing development, aiming to approve at least 112,000 new homes by 2028 and support 750,000 new homes over the next decade. Funding is provided based on municipal action plans, with continued support tied to progress in expediting housing supply.
The Affordable Housing Fund (AHF) is a $14.6 billion program focused on building, repairing, and renewing affordable housing. As of September 2024, the program has supported the creation of over 40,000 new units and the repair of 166,000 units. Budget 2024 extended the AHF to 2028 to 2029 and introduced new funding streams to support rapid housing, community housing, and energy-efficient renovations.
The Apartment Construction Loan Program (ACLP) is a $55 billion initiative providing low-cost loans to developers to boost the supply of rental housing across Canada. The program aims to support over 131,000 new rental homes by 2031 to 2032, with 53,000 units already funded as of September 2024.
Launched in 2017, the National Housing Strategy (NHS) is a 10-year, $82 billion federal initiative that focuses on increasing the supply of affordable housing, repairing existing homes, and reducing homelessness. Its funding streams include a mix of contributions, low-cost loans, and innovative financing models.
The Rapid Housing Initiative (RHI) is a key NHS program administered by the Canada Mortgage and Housing Corporation (CMHC). This initiative funds the quick construction of affordable housing and the conversion of existing buildings into permanent housing.
The Federal Lands Initiative (FLI) is a $318 million program that transfers surplus federal lands and buildings for affordable housing projects, ensuring that unused government properties are repurposed to create much-needed housing across Canada.
The Affordable Housing Innovation Fund (AHIF) is a $615.5 million program that supports creative funding models and new construction techniques for affordable housing projects.
The Canada Greener Affordable Housing (CGAH) program provides $1.2 billion to improve energy efficiency and climate resilience in affordable rental housing. The program supports deep energy retrofits for multi-unit residential buildings, helping lower-income tenants benefit from reduced utility costs while reducing greenhouse gas emissions.