National Housing Strategy's $40 billion fund open to innovators

Innovation is a hallmark of Canada’s first-ever National Housing Strategy (NHS), which is investing $40 billion over 10 years, with new ideas and concepts being put forth to create more affordable rental and social housing.

“Within the $40 billion funding are a number of different programs and innovation programs for new housing,” said Dany Skelling, Canada Mortgage and Housing Corporation’s (CMHC) affordable housing specialist, who is also a presenter at the Nov. 7 and 8 Buildex event in Calgary.

His presentation is entitled Innovations in Affordable Housing – Part of Canada’s National Housing Strategy.

The initiatives, according to Skelling, can focus on innovations that lower operating costs such as new heating systems or result in more efficient construction methods such as prefabrication or reusing materials such as shipping containers. 

The NHS will create 100,000 new housing units, renew 300,000 housing units, reduce chronic homelessness by 50 per cent and provide the housing needed for approximately half-a-million families.

While some of the program will be within the provincial government, the CMHC will lead and deliver the remainder of the NHS. It will either work with other federal departments or agencies to deliver the programs or contract through third parties.

Skelling said his session will provide the opportunity for anyone in construction with questions regarding the program to gain more insight into the overall strategy but also provide information on the various initiatives and how those in construction might apply for funding.

The Canada-wide program is also all-inclusive, as it not only provides funding for new and renovated housing stock, but also deals with a First Nations requirement on and off reserve lands and can also provide the technical assistance, tools and resources to work with the community housing sector and local organizations with special housing needs.

“We want to reduce the barriers to affordable housing and ultimately we are looking to fund the risk that comes with trying new things to create affordable housing,” he said.

That risk could be associated with attempting to work with or introduce a new building material, a new building concept or, even a new financing model.

Skelling said the program’s initiatives that are aimed at innovation are not prescriptive on the part of the federal government but instead are relying on the private sector to come forward with inspirational ideas that might be carried into the market place.

The NHS sets out criteria and eligibility to apply for funding under the various initiatives.

“There is only so much funding,” said Skelling, adding applicants will be evaluated according to the criteria. Many of the programs are available each year the program runs. 

 Some of the initiatives that Skelling will discuss are:

• The Innovation Fund – Approximately $200 million in funding will be available to create up to 4,000 new affordable units over five years. This innovation funding will look at new funding models,  innovative ideas plus reduce reliance on government long-term funding. The scope involves affordable homeownership, retrofit models and affordable rental projects.
• The National Housing Strategy Demonstrations Initiative – There is $500,000 available for the 2018-2019 year which will grow to $1.5 million in subsequent years. The intent of the program is to highlight through demonstrations innovative practices, technologies, programs, policies and strategies that can be transferred to improve the performance, viability and effectiveness of affordable housing projects. Funding for each demonstration project ranges from $25,000 to $250,000.
•  Solutions Labs — These labs will bring experts and housing stakeholders together to rapidly incubate and scale potential solutions to housing pressures. Housing sector teams with diverse experience and knowledge are invited to identify housing challenges in key areas outlined in the strategy and propose strategies to develop solutions. These solutions will be transferrable to the general marketplace where others face the same problems. There is up to $500,000 in funding available for the 2018–2019 year. Annual funding will grow to $3 million in subsequent years.

Skelling said he will discuss examples at the Buildex session and is urging building contractors and designers to attend.   

“We are looking for any number of ideas and are keeping an open mind for those ideas that are transformational,” he said.