Government of Canada takes historic action to create new rental housing

By investing in the construction of more than 10,000 new rental housing units, the Government is taking action to improve the lives of hard working Canadians. It will allow more middle-class Canadians to spend more time with their children by living closer to public transit, schools and services.

The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for the Canada Mortgage and Housing Corporation, announced the launch of the Rental Construction Financing initiative.

The Rental Construction Financing initiative will provide $2.5 billion in low-cost loans to support the construction of new rental housing, relieving pressure in rental markets that are experiencing low vacancy rates and high rents.

The initiative will complement commitments made in Budget 2017, which will invest more than $11.2 billion over 11 years for initiatives designed to build, renew and repair Canada’s stock of affordable housing. These significant investments are made as part of a new National Housing Strategy that will be launched later this year and help ensure that Canadians have housing that meets their needs.

Quote:

“Canada’s middle class will benefit from the construction of new rental housing. Through these significant investments, our Government is taking action to increase the supply of new rental developments, providing housing options that are closer to public transit, schools and services for hard-working Canadian families.”
— Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation

Quick facts:

• The rental market is an important housing option for approximately 30% of Canadians.
• The Rental Construction Financing initiative was announced as part of Budget 2016 and is expected to fund the construction of more than 10,000 new rental housing units in Canada.
• Starting in 2017, the initiative will provide up to $625 million in loans each year for four years to encourage the development of new rental housing by municipalities, non-profit organizations and housing developers.
• Combined with Budget 2017's new direct lending initiative for the renewal of affordable housing, it is expected that the amount of capital available for lending at low cost will be more than $10 billion over 11 years.
• CMHC also announced new mortgage insurance measures to support affordable rental housing projects.