Last week, Council passed a motion that would see Ottawa, the first city in Canada to do so, to partner with the Federal Government to build thousands of affordable and deeply affordable homes. 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. 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.