Affordable Housing Initiative (AHI)
Since 2001, the Government of Canada has committed to an investment of $1 billion through the Affordable Housing Initiative (AHI). The AHI is the vehicle through which the federal government, through Canada Mortgage and Housing Corporation, provides contributions to increase the supply of off reserve affordable housing, in partnership with provinces and territories. A multilateral housing framework was agreed to by Federal, Provincial and Territorial housing Ministers in November 2001. This framework established the broad parameters for bilateral Affordable Housing Program Agreements which have been signed with each province and territory.
Provinces and Territories cost-match the federal investment. This funding may come from provincial or territorial sources and from other parties (e.g. municipalities, private sector, donations etc.). These contributions may be in the form of a grant, a stream of ongoing subsidies or the value of in-kind contributions (e.g. land). The bilateral agreements set out the share of the federal funding that is available in each province or territory, as well as the overall terms and conditions that must be met. Within these terms and conditions, each provincial or territorial housing agency has designed its own housing programs and is responsible for program delivery, including the selection of housing projects that are chosen to receive AHI funding.
The AHI has two phases. The first phase, which announced the provision of $680 million for affordable housing in 2001, provides funding for the creation of new rental housing, major renovation and conversion. Project proponents are found within the non-profit sector, private or public sector (e.g. municipal non-profit housing corporation). Homeownership is eligible in remote areas and in urban redevelopment areas subject to a maximum funding amount. The units produced under the AHI must rent at prices at or below median market rents. For the first phase, the average amount of federal funding may not exceed $25,000 per housing unit.
The second phase of the AHI, announced in 2003, includes a federal commitment of $320 million to provide additional funding for housing targeted to low-income households in communities where there is a significant need for affordable housing. To be considered "low income" a household must be qualified to be on a social housing waiting list. Provinces and Territories are encouraged to consider Aboriginal people, persons with disabilities and recent immigrants as priorities. Under the second phase, the maximum federal funding is 50% of capital costs to a maximum of $75,000 per housing unit to reduce rents to levels affordable to low income households.
New program flexibilities under the AHI were introduced in 2004/05, in the areas of home ownership programs, targeting of AHI-funded programs, cost-sharing arrangements and provision of rent supplements.
The table below shows each province and territory's share of the federal AHI dollars, as well as the federal dollars and number of housing units committed and /or announced in each jurisdiction.
Information on each Province's and Territory's AHI-funded housing programs may be found by contacting the provincial or territorial housing agency.
Funding
Provinces and Territories
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