Ottawa Construction News staff writer
A landmark partnership between the City of Ottawa and the federal government’s new housing agency has cleared a major hurdle, paving the way for 3,000 new homes aimed at tackling the city’s affordability crisis.
In a joint meeting Fri. Apr. 10, the Finance and Corporate Services Committee and the Planning and Housing Committee advanced an agreement with Build Canada Homes. The deal, first announced in late 2025, represents a total investment and contribution package valued at approximately $400 million.
Under the terms of the agreement, 2,000 homes will be constructed on surplus federal lands, while $150 million in federal funding will be directed to the city to accelerate 1,000 “shovel-ready” projects currently in Ottawa’s affordable housing pipeline.
The city’s contribution to the deal is valued at between $200 million and $245 million. This will be delivered through waived development fees, property tax exemptions for affordable units on federal lands, and a “tailored” approval process designed to fast-track construction.
“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,” the city stated in a news release following the meeting.
The 2,000 units slated for federal land will follow a mixed-income model. According to the committee report, the targeted breakdown includes:
- 1,200 market-rate homes;
- 800 homes for moderate-income households and below;
- 200 “deeply affordable” homes for the city’s lowest-income residents within that 800-unit allocation.
The city noted that achieving “deep affordability” is typically difficult under standard market conditions and often requires the rent supplements supported by this mixed-income approach.
Build Canada Homes, which launched in September 2025, is a federal agency focused on growing the supply of mixed-income housing by leveraging public land and modern construction methods. This agreement is the first of its kind for a Canadian municipality.
City Council is scheduled to give final consideration to the committees’ recommendations on Wednesday, April 22. If approved, the partnership is expected to significantly advance Ottawa’s goal of becoming the most “housing-friendly” city in Canada.
