Partnership with Build Canada Homes promises 3,000 new homes, with focus on affordable and supportive housing

The Finance and Corporate Services and the Planning and Housing committees approved a federal-municipal partnership to advance the construction of 3,000 new mixed-income, affordable and supportive homes

In a joint meeting today, the Finance and Corporate Services Committee and the Planning and Housing Committee advanced a partnership with the federal government to support 3,000 affordable and market rental homes in Ottawa. The majority of these new homes will be more affordable than what the market can provide, including a significant number of new affordable and supportive housing units. 

This partnership is with Build Canada Homes, a new federal agency that launched in September 2025 to help grow the supply of mixed-income housing in Canada. This first-of-its-kind agreement for Ottawa represents a significant federal-municipal partnership that supports the accelerated delivery of affordable homes in Ottawa.

The partnership includes up to $400 million in federal and municipal contributions to support the development of 3,000 homes.

The 2,000 units on surplus federal lands would include a mix of market, affordable and deeply affordable homes. Up to 40 per cent of the homes on federal lands are targeted to be affordable. Mixed‑income housing like this brings people of different incomes together, helps residents do better in life, and supports the economy by making sure workers can afford to live where they work.

The agreement retains flexibility to help achieve this mixed-income approach. On federal lands, the targeted breakdown of those 2,000 units is as follows:

• 1,200 homes at market rates
• A target of 800 homes that would be affordable for moderate-income households and below
• Within those 800, a target of 200 more deeply affordable homes for the lowest-income households

Deep affordability for the lowest-income households is typically only possible with rent supplements, making it difficult to achieve this level of affordability under standard conditions. The mixed‑income development approach being advanced through this agreement supports that deeper affordability while also meeting the broad needs of a range of income earners.

Build Canada Homes will contribute federal lands to develop 2,000 homes. As part of the agreement, the City will receive $150 million of funding to support at least 1,000 homes for shovel-ready projects on the City’s Affordable Housing Pipeline, further advancing the City’s progress towards meeting its affordable housing developments goals. 

The City's contribution consists of waiving fees and charges to make building less expensive, and a tailored approval and permitting process to make the overall process faster. The City’s contribution also includes property tax exemptions for the affordable homes built on surplus federal lands, helping to keep operating costs low and maintain affordability for residents. This contribution is valued at $200 to $245 million. 

As directed by Council, the City is striving to become the most housing-friendly city in the country. This agreement with the federal government through Build Canada Homes is another example of the City using every tool possible to drive transformational change and help get new homes built in the short term.

City Council will consider the recommendations from today’s meetings on Wednesday, April 22.