OTTAWA – The Canadian government is launching a new initiative called Build Canada Homes, aimed at increasing the construction of affordable housing while prioritizing the use of Canadian-made materials. A consultation document released by the housing department outlines the program's goals and strategies.

Build Canada Homes is designed to expedite the conversion of federal lands into housing and to promote construction methods that are both cost-effective and environmentally friendly. The government is exploring various financial tools, including loans, equity investments, and loan guarantees, to support this initiative.

The program is still in development, and the housing department is accepting public feedback until the end of the month. The document emphasizes that Build Canada Homes will focus on projects that can deliver a significant number of affordable housing units. It will also consider initiatives led by co-ops, non-profits, and Indigenous housing providers.

The government aims to utilize Canadian-made materials and regional production hubs to enhance the efficiency of public spending. This includes offering below-market-rate loans and engaging private or philanthropic capital. Additionally, the initiative will prioritize innovative construction methods, such as prefabricated and 3D-printed homes.

Housing affordability has been a pressing issue in Canada, particularly highlighted during the recent federal election. The Canada Mortgage and Housing Corporation reported that the country needs to construct between 430,000 and 480,000 new housing units over the next decade to stabilize housing costs.

Prime Minister Mark Carney's election platform included a commitment to invest $6 billion in the Build Canada Homes initiative. The plan also involves providing over $25 billion in financing to support prefabricated homebuilders and incentivizing companies to hire apprentices and recent graduates.

Caroline Desrochers, parliamentary secretary to the minister of housing and infrastructure, stated that the government is considering whether Build Canada Homes will operate as a separate agency or as part of the existing Housing, Infrastructure and Communities Canada unit. She indicated that the program is expected to launch in the fall, with preliminary work already underway.

Desrochers emphasized the importance of avoiding additional bureaucracy, stating, "We are going to start doing work right now with what we have already." The government is also collaborating with various promoters and modular home companies to identify projects that are ready for funding and construction.