Build Canada Homes signals strong federal leadership, united approach to tackle Canada’s housing and affordability crisis

OTTAWA, ON, Sept. 14, 2025 /CNW/ – The Federation of Canadian Municipalities (FCM) welcomes the federal government’s Build Canada Homes (BCH) initiative as a strong signal of leadership on the housing crisis. This announcement shows a clear commitment to working in partnership with municipalities—as well as provinces and territories, Indigenous governments, housing providers, non-profits, and developers—to deliver practical, results-driven solutions that meet the urgent housing needs of Canadians.

Municipalities are already leading on housing, and their continued leadership will be essential to the success of BCH. Local governments are champions in addressing homelessness and driving affordable housing solutions that meet the needs of their communities. FCM commends the federal government in particular for the inclusion of supportive and transitional housing for Canadians experiencing homelessness and emphasizes the need for sustained federal-provincial funding to make lasting progress on homeless encampments. Through BCH, municipalities can contribute land, support modular construction, and continue leading on zoning, approvals, infrastructure, and community planning. Municipal leadership is essential to the success of any national housing strategy.

To help meet the federal goal of building 500,000 homes per year, FCM is committed to working with all governments to make that ambition a reality. Reaching that scale will require more than BCH alone—it will require new investments in the infrastructure communities need to support housing, like roads, water systems, and public transit through proven tools like the Canada Community-Building Fund.

“Build Canada Homes is an opportunity to work together to deliver the housing Canadians need,” said Rebecca Bligh, President of FCM. “Municipalities are ready to help shape the right mix of housing to meet affordability and homelessness challenges. With the right federal tools—including infrastructure investments that keep pace with growth—we can build lasting solutions in communities across the country.”

FCM has put forward a set of recommendations to help BCH succeed, including:

• Speed, predictability and scale: Build on proven models like the Rapid Housing Initiative to deliver housing quickly and efficiently.
• Continuity and stability: Establishing BCH will take time, and it’s critical to maintain momentum in funding and building urgently needed housing. Projects already in the pipeline—such as those under the Affordable Housing Fund—should be prioritized for funding through BCH.
• Infrastructure alignment: Pair housing investments with predictable funding for housing-enabling infrastructure such as water, roads, and transit.
• Build capacity to deliver: Smaller communities and non-profit housing developers often need help early in the process, like figuring out if a project is doable or meeting building standards. Supporting them ensures housing gets built in all parts of the country. FCM could help deliver that support in partnership with the federal government.
• Facilitate funding for repairs and conversions: Canada can add more affordable housing by fixing older buildings and converting unused spaces like offices into homes. BCH should support these efforts to preserve existing housing and create new units faster.
• Use public land to protect long-term affordability: The federal government could help create more deeply affordable housing by redeveloping older or underused public housing properties. If it keeps ownership of these properties and leases them to community housing providers at no cost, it can ensure the housing remains affordable over the long term.
• Regional benefits and reach: BCH should make sure affordable housing is built everywhere, not just in big cities, but also in rural, northern, and mid-sized communities. It should also include smaller developers and modular housing builders so that the benefits of the program are shared across the country.

FCM also sees a unique opportunity for BCH to kickstart Canada’s modular housing sector—delivering high-quality, permanent housing faster and more affordably, while supporting Canadian manufacturing and construction jobs.

As the federal government unveils more details about Build Canada Homes and with the federal budget on the horizon, FCM continues to advocate for a collaborative approach. A set of recommended federal actions has been put forward to help address the housing and homelessness crisis—actions aimed at delivering deeply affordable housing at scale, supported by the infrastructure and tools communities need to succeed.

SOURCE Federation of Canadian Municipalities (FCM)