Accessibility Notice

To respond to the need for improved housing in First Nations communities, the Government of Canada is making a significant investment in housing and is working with partners to establish training and development programs. In July 1996, the Government of Canada announced a new federal on-reserve housing policy for First Nations that represented a fundamental shift in thinking and encourages First Nations to tailor their housing plans to meet the needs of their communities.

The 1996 policy framework gives First Nations the flexibility to determine how housing funds should be used. The new approach is founded on four key pillars:

• First Nation control (community-based housing programs);
• First Nation expertise (capacity development);
• shared responsibility (shelter charges and ownership options); and
• better access to private capital (debt financing).

As part of the housing program, INAC provides capital for new construction and renovation, and funding for activities such as maintenance, insurance, debt servicing, and the planning and management of the housing portfolio. The funding is not intended to cover the full cost of housing, so First Nations and individuals are required to identify and obtain other necessary funding. The housing program is administered by First Nations or their designated housing authorities.

As a result of the flexibility provided under the 1996 policy, more and more First Nations are actively seeking a range of innovative solutions in all aspects of housing, from program design and construction techniques to new management and governance models.

Although housing conditions have improved, there is still work to be done. The lack of adequate, affordable housing is a great challenge for many First Nations. The average income in these communities is less than half the Canadian average. Their birth rate is double the national average, which means an ever-increasing demand for housing. The projected number of new households in First Nations will average 4,500 per year over the next 10 years. Too few houses results in overcrowding. Overcrowding not only reduces the life span of a house, it worsens social problems such as poor health conditions, family tensions and violence.

According to the most recent census, about 12% of houses in First Nation communities are overcrowded, compared to one percent elsewhere in Canada. Data, as of March 31, 2005, indicates that of the almost 96,800 houses in First Nation communities, more than 21,200 (21.9%) are in need of major repairs and about 5,500 (5.7%) need to be replaced.

The Crown ownership of First Nations lands makes it difficult for community members to obtain financing for housing construction or mortgages. As a result, housing loans made by private financial institutions on reserves cannot be secured by conventional mortgages. To facilitate access to housing loans, INAC provides Ministerial Loan Guarantees (PDF 101 Kb).

The department and First Nations also work closely with the Canada Mortgage and Housing Corporation (CMHC) which has housing programs available on reserve, such as the Non-Profit Rental Program (Section 95) and the Residential Rehabilitation Assistance Program. Together, INAC and CMHC also provide funding for training to assist First Nations in administering their own housing programs.

In February 2005, the Government of Canada announced $295 million would be provided over five years to increase the supply of housing by 6400 units (4400 of which are CMHC Section 95 fully subsidized units and 2000 are INAC targeted as homeowner or market rental units).

In addition, funding for renovations would be increased by 1500 units (1100 through CMHC’s Residential Rehabilitation Assistance Program and 400 through INAC’s renovation program). INAC will also receive funding to service 5400 lots. The majority of this new housing and renovation work is planned to be in place by 2007-08.

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