Government pours more money into Housing Accelerator Fund
Canada is launching the second round of its Housing Accelerator Fund (HAF) to expedite home construction, addressing the nation's housing crisis.
The federal government announced the reopening of the HAF application portal from July 15 to September 13. This follows high demand in the program's first round, with over 500 applications received.
Budget 2024 allocated an additional $400 million to HAF. This funding aims to encourage more local governments to fast-track home construction, potentially resulting in an additional 12,000 new homes over the next four years.
The second round of the HAF funding will be available only to applicants from the first round who were not selected. Interested parties must update and resubmit their applications, incorporating best practices from the previous round into their action plans to accelerate housing supply and enhance affordability.
Additionally, cities applying under the large/urban stream must commit to implementing four units as-of-right bylaws in their action plans.
The Canada Mortgage and Housing Corporation (CMHC) will evaluate the applications, with successful applicants to be selected by the end of 2024. Priority will be given to ambitious and innovative applications.
Read more: Fraser: Municipal housing accelerator fund applicants must show flexibility on zoning
In the first round, HAF aimed to cut red tape and fast-track at least 100,000 permitted new homes over the first three years. Cities and regions estimate that this initiative will lead to the creation of over 750,000 new homes in towns, cities, and Indigenous communities across Canada over the next decade.
The program requires local governments to submit innovative action plans and provides upfront funding to ensure timely construction, along with additional funds upon delivering results.
“Local governments are encouraged to think big and be bold in their approaches, which could include accelerating project timelines, allowing increased housing density, and encouraging affordable housing units,” the government said in a statement.
Sean Fraser, minister of housing, infrastructure and communities, commented: "With the Housing Accelerator Fund, we are making it easier to build the homes that Canadians need at prices they can afford. There is more work to be done but this program has dramatically changed how communities build homes in this country. With this additional funding, we will keep building on the momentum, and working with partners across the country, to end the housing crisis once and for all."
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