Canada’s National Housing Strategy (NHS) is a 10-year, $115+ billion plan launched in 2017 to improve access to safe, affordable, and inclusive housing. Its priorities are to:
- Improve housing outcomes for people in greatest need
- Create and renew housing supply across the country
- Reduce homelessness and core housing need
Under the NHS, the federal government aims to support the creation of 240,000 new housing units, the repair or renovation of 300,000 units, and the protection of 385,000 community housing units.
Delivering on this mandate requires no fewer than three federal agencies.
- Housing, Infrastructure and Communities (HIC): The federal department responsible for funding and advising on locally designed and delivered housing and homelessness initiatives, as well as new and upgraded infrastructure.
- Canada Mortgage and Housing Corporation (CMHC): Mandated to promote housing affordability and choice while supporting a stable and efficient housing finance system.
- Build Canada Homes (BCH): A newly established national Crown corporation tasked with accelerating the construction and supply of affordable housing, particularly non-market and community housing, while fostering innovation across the construction industry.
In the past, CMHC has been involved in many of the activities now overseen by HIC and BCH. It has funded municipal infrastructure for water and sewers, partnered with HIC on homelessness initiatives, supported the development of affordable housing, including non-market and community housing, and worked on demonstration projects for new construction methods.
Right now, this is a tangled mess. Overlapping roles have created an unnecessarily complex and inefficient operating model. The federal government should streamline mandates and responsibilities to reduce duplication and improve program delivery.
CMHC has a dual mandate: operating commercially while also delivering government housing programs funded through budgetary spending. Some long-standing legacy programs should remain with CMHC, but any program requiring new spending approval should be given over to HIC or BCH. This would eliminate the agency’s dual – and often confusing – role, ending years of overlapping responsibilities and unclear accountability between CMHC and HIC. The 2022 Federal Audit Report on Chronic Homelessness underscored this issue, finding minimal accountability for achieving the National Housing Strategy’s goal of reducing chronic homelessness by 50 per cent by 2027-28. Assigning each program to a single agency would establish clear lines of accountability.
CMHC’s core expertise is in housing finance. Its focus should be on mortgage insurance and securitization activities. Alongside its market programs, this would include MLI Select and the Apartment Construction Loan Program.
Realigning CMHC Programs: Clarifying Roles and Responsibilities
Several CMHC programs and staff should be transferred to other agencies. If I were managing this realignment, here’s how I would approach it:
| Program | Description | Program Fit | Recommended Realignment |
|---|---|---|---|
| Apartment Construction Loan Program (Direct Insured Lending) | Low-interest repayable loans to support the construction of new rental apartment projects. | Requires knowledge of multifamily lending; aligns well with CMHC expertise in multifamily loan insurance. | Keep program within CMHC |
| Co-op Housing Development Program | Funding to support the construction of new co-op housing projects. | Aligns with the role of BCH | Transfer staff and program to BCH |
| Affordable Housing Fund | Low-interest repayable loans, forgivable loans, and/or contributions for the creation of new affordable and community housing covering a broad range of housing needs. | Aligns with the role of BCH | Transfer staff and program to BCH |
| Affordable Housing Innovation Fund | Flexible financing options to encourage new funding models and innovative building techniques to revolutionize the affordable housing sector. | Aligns with the role of BCH | Transfer staff and program to BCH |
| Canada Greener Affordable Housing Program | Finances retrofits to meet climate goals, offering incentives for energy efficiency and accessibility. | Aligns with the role of BCH | Transfer staff and program to BCH |
| Housing Accelerator Fund (HAF) | Incentivizes municipalities, provinces, territories, and Indigenous governments to remove barriers to housing supply and accelerate development. | Negotiations are being conducted by HIC | Transfer staff and program to HIC |
| Federal Lands Initiative | Forgivable loans to support the transfer of surplus federal properties at discounted or no cost for the development of affordable housing. | Aligns with HIC’s role as a government department | Transfer staff and program to HIC, with coordination required when land is later earmarked for BCH activity (e.g., Canada Lands) |
| Seed Funding | Interest-free loans and non-repayable contributions to develop affordable housing. | Aligns with the role of BCH | Transfer staff and program to BCH |
This realignment would allow CMHC to focus squarely on its financial role while giving HIC and BCH clearer mandates. To ensure a smooth transition, a technology support agreement between CMHC and BCH – and, if necessary, HIC – should be established. Since the launch of the National Housing Strategy, CMHC has undertaken a major technology upgrade to support the delivery of these programs. Between 2015 and 2023, its contract with Accenture totalled nearly $730 million. Ideally, the government would make good use of this technology as part of this multi-agency effort.
Streamlining responsibilities and clarifying mandates between CMHC, HIC, and BCH would not only improve accountability and efficiency but also strengthen the delivery of Canada’s National Housing Strategy. With clear roles and the right technology in place, these agencies can work together more effectively to meet the country’s housing needs.
Independent Opinion
The views and opinions expressed in this publication are solely and independently those of the author and do not necessarily reflect the views and opinions of any person or organization in any way affiliated with the author including, without limitation, any current or past employers of the author. While reasonable effort was taken to ensure the information and analysis in this publication is accurate, it has been prepared solely for general informational purposes. Any opinions, projections, or forward-looking statements expressed herein are solely those of the author. There are no warranties or representations being provided with respect to the accuracy and completeness of the content in this publication. Nothing in this publication should be construed as providing professional advice including investment advice on the matters discussed. The author does not assume any liability arising from any form of reliance on this publication. Readers are cautioned to always seek independent professional advice from a qualified professional before making any investment decisions.
