Federal Government Spending on Housing

Since 2006, the Government of Canada, through CMHC, has spent almost $19 billion in housing. By working with our partners, we have helped close to 915,000 Canadians individuals and families including low-income seniors, persons with disabilities, recent immigrants and Aboriginal people.

Since 1946, Canada Mortgage and Housing Corporation (CMHC) has played a vital role in helping Canadians access affordable, quality housing. Significant federal investments in affordable housing and strong oversight of Canada’s housing finance system have led to Canada being recognized as a country with one of the best housing systems in the world.

About 80 per cent of Canadians are able to meet their housing needs through the private market, without direct government assistance. For the 20 per cent of Canadians whose needs cannot be met in the marketplace, governments, community organizations, non-profit and cooperative groups, and the private sector are working together to provide affordable housing solutions.

The Government of Canada, through CMHC, provides approximately $2 billion annually for housing.

Assistance is provided across a broad continuum of housing programs and initiatives, from temporary shelter assistance, to transitional and supportive housing to help people live more independently, to housing and related assistance for low-income households.

Investments in Housing Assistance:

In recognition of the distinctive needs of Nunavut, the Government provided $100 million, over two years (2013/14-2014/15), to support affordable housing in Nunavut.

CMHC is currently working with provinces and territories to finalize the extension of the IAH to March 2019.

Investment in Affordable Housing (IAH)

Through the Investment in Affordable Housing (IAH), the federal government works with provinces and territories to better the living conditions of Canadians by improving access to housing that is sound, suitable and sustainable. The IAH provides close to $2 billion in federal funding over eight years to March 31, 2019.

Under the IAH, provinces and territories provide matching contributions and are responsible for program design and delivery. The IAH provides provinces and territories with the flexibility to invest in a range of affordable housing programs and initiatives to meet their local housing needs and priorities. Initiatives can include, for example, new construction, renovation, homeownership assistance, rent supplements, shelter allowances, and accommodations for victims of family violence. More than 217,000 households have benefitted from IAH funding since 2011.

Affordable Housing Initiative (AHI) (2001 – 2011)

The federal government introduced the Affordable Housing Initiative (AHI) in 2001. More than $1.2 billion in federal funding was cost-matched and delivered by provinces and territories under the initiative. Close to 52,400 units were funded under the AHI.

The approach to how the federal government invests in affordable housing today is built on the success of the AHI.

Existing Social Housing

Federal investments in existing social housing (built mostly between 1946 and 1993) continue to be substantial. Funding for social housing is provided through CMHC and is based on long-term agreements of 25 – 50 years, with the first agreements signed in the 1940s.Provinces and territories also contribute annually to the existing housing stock off reserve.

At the end of these agreements, the federal government funding will end as planned. At the same time, the mortgage on the properties will generally be paid off, and housing providers will find themselves with lower operating expenses as well as real estate assets that can be used to continue to offer affordable housing.

For those housing groups that need additional assistance after agreements mature, CMHC has been actively working with them to help prepare for the end of their agreements. Provinces and territories may also choose to use recently renewed Investment in Affordable Housing funds for projects whose agreements have matured.

First Nation Housing

Through Aboriginal Affairs and Northern Development Canada and CMHC, the federal government provided approximately $298 million in 2013/14 to address housing needs on-reserve. CMHC and AANDC focus on different aspects of housing on-reserve. AANDC delivers mainly at the community level providing funding to First Nations to use for services related to housing such as lot servicing and capacity development to address governance and community level issues.

CMHC’s funding on-reserve supports the construction of an estimated 500 new homes, renovation of some 1,000 existing houses, ongoing subsidies to some 27,750 social housing units and supports First Nations to improve their capacity to build, manage, and maintain housing on-reserve.

In 2007, the Government of Canada launched the $300 million First Nations Market Housing Fund, to help First Nations gain easier access to private lending for homeownership on-reserve and settlement lands.

Affordable Housing Centre

CMHC’s Affordable Housing Centre works with private, public and non-profit sectors to facilitate the creation of new affordable housing without the use of long-term federal assistance. Since its inception, the Centre has facilitated the production of more than 69,000 affordable housing units through the provision of housing knowledge, expertise and a range of financial tools including seed and proposal development funding and mortgage loan insurance flexibilities.