Build Canada Homes Act

Summary#

• This bill creates a new federal Crown corporation called Build Canada Homes. Its job is to increase the supply of affordable homes and promote faster, smarter ways to build.

• The bill sets up the corporation’s board and CEO, gives it wide powers to finance and build housing, and funds it with federal money. It also lets the federal cabinet move land and duties from the Canada Lands Company (the federal real estate firm) to the new corporation and reorganize that company.

• Key changes:

  • Creates Build Canada Homes with a chair and 8–10 directors, plus a full-time CEO.
  • Lets it develop land and construct housing; give loans, grants, and investments; buy, sell, or lease property; and partner with provinces, territories, cities, non-profits, and builders.
  • Allows federal funding of up to $11.5 billion, and separate authority up to $1.515 billion to support related entities such as the Canada Lands Company.
  • Permits borrowing, with a cap on borrowing from non-federal sources, and allows loan guarantees with the Finance Minister’s approval.
  • Enables cabinet to transfer federal real estate and obligations from the Canada Lands Company, and to direct reorganizations.
  • Requires a review after five years and then every ten years.

What it means for you#

• Renters and people seeking affordable housing

  • More affordable homes could be built over time, including on federal land.
  • New projects may use factory-built or other faster building methods to cut costs and time.
  • The bill does not set unit targets or deadlines, so timing will depend on future plans.

• First-time homebuyers

  • More homes on the market in some areas could ease pressure on prices.
  • Entry-level and modest homes may be a focus, but details will depend on the projects funded.

• Non-profits, co-ops, and community housing providers

  • New options for grants, low-cost loans, equity investments, and partnerships.
  • The corporation can deliver programs on behalf of other governments, which may simplify funding.

• Builders and developers

  • Potential access to financing, public land, and partnerships on large projects.
  • The new public builder may also compete for land and projects in some markets.
  • Fees may be charged for services the corporation provides.

• Provinces, territories, and cities

  • Can partner with the corporation to plan and deliver housing.
  • Federal land may be unlocked for housing projects in local communities.

• Taxpayers

  • Significant federal funding and financial risk if projects or loans underperform.
  • Some standard federal rules for property sales and borrowing do not apply to the corporation in certain cases, which may affect oversight.
  • The law requires periodic reviews and public reporting to Parliament.

• Current users of federal properties

  • Some federal sites could be repurposed for housing, which may change how certain lands are used.

Expenses#

Estimated federal commitment: up to CAD $11.5 billion for the new corporation, plus up to CAD $1.515 billion for related entities, with added borrowing powers.

• Up to CAD $11.5 billion in total federal payments to fund Build Canada Homes’ operations and activities (a cumulative cap, not annual).
• The Finance Minister may also lend money to the corporation from the federal treasury.
• The corporation may borrow from other sources, up to CAD $400 million outstanding at any time (this limit can be changed by cabinet).
• Loan guarantees are allowed but only with the Finance Minister’s approval.
• Separate cap of up to CAD $1.515 billion for payments to support the Canada Lands Company or another designated entity working toward the same housing purpose.
• Ongoing operating costs, project-level spending, and revenues will depend on future decisions and are not specified in the bill.

Proponents' View#

• A dedicated public builder-investor can speed up construction of affordable homes and fill market gaps.
• Using federal land and federal capital together can lower project costs and scale up building quickly.
• Flexible tools (grants, loans, equity, and partnerships) let the corporation unlock stalled projects and boost supply where it’s most needed.
• Promoting innovative methods, like factory-built homes, can cut build times and reduce costs.
• Central coordination and data-sharing can guide smarter investments and avoid fragmented efforts.
• Periodic reviews and reporting to Parliament provide accountability over time.

Opponents' View#

• Large public spending and wide financial powers create taxpayer risk if projects lose money or go over budget.
• Broad cabinet directives and exemptions from some usual federal rules may weaken transparency and oversight.
• A public builder could crowd out private firms or duplicate work done by the Canada Mortgage and Housing Corporation and others.
• Reorganizing the federal real estate arm and shifting lands could be complex, slow, or disruptive.
• The law sets no hard targets or timelines, so it may not deliver homes quickly enough to meet demand.
• Housing is shared across levels of government; a stronger federal role could complicate local planning or priorities.