Build Canada Homes (BCH) is Canada's new federal agency created to build and finance affordable housing at scale. Launched on September 14, 2025, BCH provides flexible financing — including loans and non-repayable grants — to expand the supply of affordable housing across the country. The agency operates as a Special Operating Agency within Housing, Infrastructure and Communities Canada (HICC) and will evolve into a standalone federal agency.

BCH focuses primarily on non-market housing, supporting a mix of income needs as part of a national effort to double housing construction, restore affordability, and reduce homelessness. The agency works with provinces, territories, municipalities, Indigenous communities, non-profits, co-operatives, and private developers to deliver housing through three core functions: building affordable homes (including direct development on federal lands), financing affordable homes (deploying public capital and attracting private investment), and catalyzing the housing industry (driving adoption of modern construction methods such as factory-built and modular housing).

BCH is currently seeking shovel-ready projects that materially expand the stock of affordable housing. Shovel-ready projects are defined as those fully planned and ready to begin construction within 12 months or less. Over time, BCH intends to focus on larger-scale and portfolio-based projects.

Nova Scotia Partnership:

In December 2025, the Government of Canada and the Province of Nova Scotia announced a partnership of up to $300 million ($120 million federal, $180 million provincial) to accelerate the development of 1,430 new affordable homes. This includes 500 units of non-profit and community housing across the province and a mixed-market development of up to 930 units at Shannon Park in Dartmouth.

Eligible Projects:

BCH invests in projects that expand Canada's affordable housing supply through:

• New construction
• Acquisition, conversion, and repurposing of non-residential buildings into residential housing
• Conversions, rehabilitations, additions to existing buildings, and infill opportunities
• Increasing and/or deepening affordability targets in ongoing projects

BCH supports a range of housing forms:

• Mixed-income and mixed-use developments (with up to 30% ground-floor commercial or retail)
• Mixed-income housing in rural, remote, northern, and Indigenous communities (including ownership options where rental markets are limited)
• Student rental housing (on- and off-campus)
• Seniors' independent living housing
• Supportive and transitional housing for people experiencing or at imminent risk of homelessness
• Affordable ownership models through community-based contributions and income-sensitive financing
• Co-operative housing solutions

What Costs Can BCH Funding Support:

Funding focuses on closing financial gaps that would otherwise prevent a project from moving forward and increasing the number of affordable units or enhancing the depth of affordability. Eligible costs include, but are not limited to:

• Construction costs (labour, materials, supplies)
• Land or building acquisition for new builds and redevelopment
• Projects integrating modern methods of construction or technologies, such as factory-built construction
• Firm-level investments in factory-built housing manufacturing capacity (only to the extent they are directly needed as part of a large-scale housing development or portfolio-level opportunity)

How BCH Defines Affordability:

Housing is affordable when rents are no more than 30% of a household's before-tax income, based on the median income in the local area. BCH uses an income-based definition that reflects regional differences — so affordability thresholds vary by community. For example, the maximum affordable rent for a one-bedroom unit for low-income Canadians ranges from $548/month (Amherst, NS) to $838/month (Vancouver, BC).

Proposals Are Strengthened By:

• Construction readiness within 12 months
• Depth and duration of affordability that meets local needs
• Use of modern construction methods (modular, factory-built) to reduce costs and speed delivery
• Collaborative projects that leverage capital and bundle submissions for regional impact
• Use of Canadian materials to strengthen supply chains and support local manufacturing

Supportive and Transitional Housing ($1 Billion Allocation):

BCH is deploying $1 billion in capital funding specifically for supportive and transitional housing. These projects are expected to:

• Accelerate timelines by leveraging factory-built housing solutions
• Serve identified populations with specific support or transitional needs
• Demonstrate connection to the local homeless-serving system for tenant prioritization
• Ensure long-term operating and maintenance costs are funded through committed partnerships with provinces/territories or other funders, including wrap-around supportive services
• Demonstrate that the project would not proceed without BCH support

Private sector and for-profit proponents must partner long-term with non-profit or public organizations.

Sustainability and Climate Requirements:

BCH prioritizes low-carbon, climate-resilient, and innovative building materials (e.g., low-carbon concrete and steel, mass timber and softwood lumber) and efficient design. Investment decisions favour projects that demonstrate energy efficiency and climate performance, including climate-informed site selection and design features that address local hazards such as flooding, wildfire, hail, and extreme heat.