The federal government is launching a new $6-billion infrastructure investment program designed to help curb the country’s chronic housing shortage.

The Canada Housing Infrastructure Fund will available to municipalities, provinces and territories to construct and upgrade critical infrastructure to support the construction of more homes, including water, wastewater, stormwater, and solid waste management systems. Investors, developers and politicians alike have cited a lack of infrastructure and related funding as barriers to new-home construction, especially multi-family developments.

Ottawa will provide $1 billion to municipalities to support urgent infrastructure needs that will directly create more housing, the Prime Minister’s Office said in a news release.

Provinces and territories will be able to access $5 billion if they commit to “key actions” that increase housing supply. The key actions include requiring municipalities to adopt four units as-of-right on single plots; implement a three-year freeze on development cost increases,

Provinces and territories will be able to access $5 billion if they commit to “key actions” that increase housing supply. The key actions include requiring municipalities to:

• Adopt four units as-of-right and allow more “missing middle homes, including duplexes, triplexes, townhouses, and other multi-unit apartments.

• Adopt forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing options.

• Require as-of-right construction for the government’s upcoming federal government’s housing design catalogue.

Provinces and territories will have until January 2025 and April 2025, respectively, to secure an agreement with the federal government.

Ottawa also announced that municipalities will be required to take action to unlock housing supply in order to access funding for public transit. The actions include eliminating minimum parking requirements and allowing high-density housing near high-frequency transit lines and post-secondary institutions; and completing a housing needs assessment for cities with populations above 30,000.

The federal government is also topping up the Housing Accelerator Fund with an additional $400 million so that more municipalities can cut red tape, fast-track home construction, and invest in affordable housing. 

The Prime Minister Office said the move will fast-track 12,000 more home in the next three years.

The investments are part of the federal government’s 2024 budget, to be introduced in the House of Commons on April 16.

Meanwhile, the Canada Infrastructure Bank has launched the Infrastructure for Housing Initiative, which will provide municipalities and Indigenous communities with a financing tool designed to offset infrastructure constraints related to new housing supply.

CIB is looking to partner on water, transportation, transit and clean power projects.

Photo: CNW Group/Canada Newswire