Ontario Construction Report staff writer
Prime Minister Mark Carney has unveiled Build Canada Homes, a new federal agency tasked with overseeing large-scale construction of affordable housing across the country.
The agency, launched with an initial $13-billion budget, will manage development on federal lands, coordinate partnerships with provinces, municipalities, Indigenous communities and private developers, and prioritize faster, lower-cost building methods such as modular, factory-built and mass-timber construction.
So far, 88 federally owned sites totaling 463 hectares have been identified as suitable for housing.
Carney said the agency’s immediate priorities include:
- Construction of 4,000 factory-built homes on six federal sites in Ottawa, Toronto, Winnipeg and Edmonton.
- A $1.5-billion rental protection fund to help non-profits purchase aging buildings and keep them affordable.
- $1 billion for transitional and supportive housing for people experiencing or at risk of homelessness.
Ana Bailão, a former Toronto deputy mayor and housing executive, has been appointed CEO. She previously helped develop Toronto’s “Housing Now” program, which used city-owned land for residential projects.
Carney said the goal is to double the pace of housing construction, reduce building costs, shorten timelines, and lower homelessness rates. Build Canada Homes will also attempt to streamline permitting by providing federal approval for bulk housing projects.
The agency will operate under the Canada Mortgage and Housing Corporation (CMHC) definition of affordability—housing that costs less than 30 per cent of a household’s pre-tax income.
One of its first partnerships will be with the Nunavut Housing Corporation to deliver 700 homes, about 30 per cent of which will be built off-site and shipped north. Carney noted that factory-built homes can be produced year-round and assembled quickly, including during winter months.
Build Canada Homes will also follow the federal government’s new “Buy Canadian” policy, prioritizing Canadian-made materials such as lumber and steel in response to U.S. trade pressures.
While industry groups have welcomed the agency’s creation, critics question whether $13 billion and the current timelines will be enough to ease the housing crisis, pointing to past federal programs that struggled to keep pace with demand.
Further details on funding allocations and project delivery are expected in the November federal budget.