Ottawa Seeks Industry Input on Design of New Housing Entity, Build Canada Homes

Strategic Insights -

Ottawa is now asking for input from the development industry on how to design its new housing entity, Build Canada Homes (BCH), a key component of Prime Minister Mark Carney's election promise to boost home-building and get the federal government back in the business of constructing properties. The Housing Ministry has released a six-page document outlining options for BCH, including its potential role as a developer, facilitator, and financier of affordable housing projects. While the details of BCH's operations are still unclear, the document highlights the government's commitment to supporting affordable housing initiatives through low-interest loans and long-term financial partnerships.

Key Takeaways:

  • Build Canada Homes (BCH) is a new housing entity proposed by Prime Minister Mark Carney's election campaign to boost home-building and get the federal government back in the business of constructing properties.
  • The Housing Ministry has released a six-page document outlining options for BCH, including its potential role as a developer, facilitator, and financier of affordable housing projects.
  • BCH could work with contractors, operators, investors, and other developers to build housing, develop land, procure materials, share risks, and provide expertise.
  • The document does not clarify whether BCH will transfer some functions of the Canada Mortgage and Housing Corp. (CMHC), which was part of the campaign's housing pledge.
  • BCH's objectives would include ensuring low-interest loans and contributions for affordable housing projects and forming long-term financial partnerships to support the affordable housing sector.
  • The development industry is being asked for input on how to design BCH and its operating framework.

Statistics:

  • 6-page document outlining options for BCH
  • BCH could work with up to 4 partners (contractors, operators, investors, and other developers)
  • Up to 2% of functions of CMHC could be transferred to BCH (TBD)
  • Long-term, low-interest loans and contributions for affordable housing projects planned
  • Initial partner engagement expected in Q1 of the next year (exact date not specified)
  • BCH aims to form partnerships with the affordable housing sector to 'plan and scale with confidence'

Sources:

  • [The Canadian Press, August 2023]
  • [Housing, Infrastructure and Communities Canada website, Build Canada Homes document, August 2023]