As both large and smaller municipalities struggle with housing demands, several are using funds from the federal $4 billion Housing Accelerator Fund (HAF) in a novel incentive program that puts dollars into the pockets of developers and builders.
HAF, which runs until 2026-27, has provided funds to Canadian municipalities in four areas: implementing the initiatives, supporting delivery of affordable housing, building infrastructure to support housing or developing community related infrastructure to support housing.
It has two feed streams: one for communities, including First Nations, with less than 10,000 people and a second for larger urban municipalities.
While many municipalities have internalized funds with zoning, parking and permitting changes, the incentive program flows funds through to the builders, albeit MURB developers through to private owners.
Saskatchewan’s Moosomin, a small community, has an incentive program that is seeing new housing built and one developer and construction company in line to receive a $214,000 grant when 24 units near completion. The town received approval for up to $992,000 in funding from the HAF in February 2024 and has offered $30,000 for the first new unit built and $8,000 for each additional unit in multi-residential structures.
“This program offers a very fast response,” said CEO Stu Niebergall of the Regina and Region Home Builders’ Association. “Out of everyone in Canada, it is the little town of Moosomin that has shown us the way.”
Moosomin’s program is not complex, he said, also commending the HAF program for keeping it simple for municipalities.
On the larger feed stream, the City of Winnipeg in February completed round two funding for 12 projects qualifying for $25 million. Round one in 2024 saw $25 million allocated to 11 projects. Both rounds expect to create a total of 2,553 new housing units, according to the city’s website.
Of those new units, 1,230 will be affordable units. Grants up to $35,000 per unit for affordable multi-family projects were available and up to $25,000 for projects located downtown. Projects that qualify for the affordable housing grant could be eligible for an additional $15,000.
“It has definitely worked,” said Moosomin’s economic development officer Casey McCormac, as the HAF incentive program has spurred development in the town of 2,800 located near Saskatchewan-Manitoba border.
The town is a regional hub for burgeoning resource development around the area and is struggling to find permanent, rental and senior housing.
“A house that goes on the market, sells the next day,” she said.
Manitoba’s Keller Developments is currently completing two 12-unit buildings and will see a payout of $214,000. Half will be paid out when a temporary occupancy permit is issued, said McCormac, and the other half when a permanent occupancy permit is issued.
Another six-unit modular building is also under construction and another five applicants are in the permitting stage or starting construction.
“It is an incentive to get people to build,” said McCormac, adding the construction must be new and applies to new family homes, ready-to-move units, modular homes, mobile homes, tiny homes, apartments, condos and townhouses. Garage units, basement suites and backyard suits qualify for the $8,000 additional unit incentive.
McCormac said the town receives the funding in phases and it must reach a certain level of new construction to gain further funding. Currently, 35 new units have been built to reach the threshold of 43 units.
Keller Development’s Doug Morrow, project manager for the Moosomin project, said the program was “definitely an incentive to build in the area.”
Construction costs are rising and “every bit helps,” he said.
But town support came in other ways.
“Everyone in town was good to work with,” Morrow said as the town was quick to answer grant questions as well as getting the projects out of the ground.
Although Keller is a vertically-integrated company, it hired trades and purchased locally when possible, he said.
Company owner Evan Keller, addressing the local chamber of commerce, said his company keeps half of what it develops and either sells or rents the remainder.
The City of Winnipeg’s program has also met with success from Manitoba builders, said Lanny McInnes, CEO of the Manitoba Home Builders Association.
“The City of Winnipeg did a grant program as part of their HAF incentive for promoting multi-family housing downtown and in core areas,” he said, adding it is a means of drawing in developers and builders to non-traditional markets such as low-cost and affordable housing.
The Winnipeg projects have been over-subscribed, he said.
“The math may not have always added up before,” McInnes said, but incentives rejig the viability of such projects.
Companies and projects awarded contracts in Winnipeg’s February’s round two are Market Lands North Tower Project Inc., North End Women’s Centre, Village Canadien Co-op Ltee., Main Street Project Inc., Space 2 Developers, Living Gospel Church Inc., Brokenhead Ojibway Nation Development Corp., Selam Housing, Veritas Development Group Ltd., Southern Chiefs Organization Reconciliation Foundation Inc., The Forks Renewal Corporation, True North Real Estate Development.
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