Federal Government Announces Partnership To Create More Affordable Housing
Finding affordable housing in Mississauga can be challenging. Now a new partnership hopes to help Canadians find a home that they can afford.
On Wednesday (August 21), the federal government announced a planned $400 million worth of funding to build over 2,000 units over the next two years in communities hit hardest by housing affordability.
Jonathan Wilkinson, the Minister of Fisheries, Oceans and the Canadian Coast Guard, announced on behalf of Jean-Yves Duclos, Minister of Families, Children and Social Development. Duclos is also the Minister Responsible for Canada Mortgage, and Housing Corporation (CMHC) made the announcement today.
“With the federal government’s strategic investment in affordable housing providers, this will undoubtedly open up new growth opportunities in the housing sector, and facilitate the development of more affordable housing stock in our city,” said Wilkinson. “This forward-thinking solution is exactly what the National Housing Strategy’s Affordable Housing Innovation Fund is all about. I am looking forward to seeing the results of our government stepping up to help HI-C effectively meet the growing demands for affordable housing not only in the Great Vancouver Area, and B.C., but across Canada.”
Through the National Housing Strategy’s Affordable Housing Innovation Fund, $20 million will be invested in a new lending institution called HPC Housing Investment Corporation (HI-C). HI-C is a federal non-share corporation with three founding members: BC Housing, Manitoba Housing Renewal Corporation and Ontario’s Housing Services Corporation.
CMHC also worked closely with HI-C providing guidance, feedback and education on the development of this new financial funding model. HI-C plans to create and offer bonds in capital markets to investors at long-term fixed interest rates, generating funding for affordable housing providers and their projects.
“HPC Housing Investment Corporation’s innovative approach offers more financing options for affordable housing providers,” said Shayne Ramsay, the Chair and President of HPC Housing Investment Corporation. “Regardless of size or funding need, HI-C provides the financial expertise and underwriting required to bridge the gap between housing providers and debt investors. I am pleased to see the expansion of this model to support the development of social and affordable housing across the country.”
The Affordable Housing Innovation Fund will provide $200 million over five years for projects that showcase new funding models and innovative building techniques, lowering the costs and risks of financing affordable housing projects.