Federal Lands Initiative

Budget 2024 and Canada’s Housing Plan

Budget 2024 allocated $112.6 million over 5 years to the Federal Lands Initiative, starting in 2024-25, with an additional $4.3 million in future years. This funding boosts the $200 million Federal Lands Initiative, aimed at unlocking more federal lands for housing providers to create new homes. This investment aims to create at least 1,500 homes, including 600 affordable homes and will prioritize new approaches, such as leasing, to make federal lands available to affordable housing providers.

The Public Lands for Homes Plan commits to leasing public lands instead of selling them, ensuring that public land remains public and affordable homes stay affordable.

How surplus federal property is made available for use as affordable housing:

1. Property identification: Federal government departments and Crown corporations identify property that is no longer needed.

2. Due diligence: Federal property owners perform necessary due diligence on the property (Indigenous consultations, environmental/physical condition assessments, etc.)

3. Property assessment: Federal property owners determine whether land and/or building(s) are suitable for use as affordable housing.

4. Property review: Federal Lands Initiative team reviews evaluated properties and expresses interest in suitable property. Re-zoning or pre-development work may be done at this stage.

5. Property for sale or lease: Suitable property is made available for sale or lease through the Federal Lands Initiative and posted to the CMHC-National Housing Strategy website.

6. Applications Accepted: Housing providers apply to purchase or lease property for affordable housing project. Proposals are evaluated based on accessibility, affordability, environmental efficiency and community need.

7. Project selection: Winning application is selected and property is sold or leased at discounted to no cost. Cost is based on the project’s social outcomes, proponent experience and project proposed. Agreements are signed to ensure the property is developed and maintained as affordable housing for no less than 25 years or as otherwise specified.

8. Housing is built or renovated: Affordable housing is created or rejuvenated to the benefit of the community.

The Federal Lands Initiative is open but not limited to the following groups:

• community housing organizations
• non-profit organizations or registered charities
• co-operative housing organizations
• municipal, provincial and territorial governments including their agencies
• Indigenous governments and organizations, including Tribal Councils
• for profit organizations

Eligible affordable housing projects include, but are not limited to:

• mixed-income
• mixed-use (commercial space should not exceed 30% of gross floor area)
• mixed-tenure
• shelters
• transitional housing
• supportive housing
• rental housing
• affordable homeownership
     

Minimum Requirements

Proposals to build or renovate surplus federal property into affordable housing must meet the following minimum requirements:

• Affordability: At least 30% of units must be less than 80% of Median Market Rent, for a minimum of 25 years.
• Accessibility: At least 20% of units must meet accessibility standards and projects must be barrier-free or demonstrate full universal design.
• Energy Efficiency: New projects are required to achieve either a 25% decrease in energy consumption and greenhouse gas (GHG) emissions relative to the 2015 National Energy Code for Buildings or the 2015 National Building Code; OR a 15% decrease relative to the 2017 National Energy Code for Buildings.
  For repair or renewal projects, a 25% decrease in energy use and greenhouse gas emissions relative to past performance of the property is required.
• Evidence of Community Need: Proponents must provide a clear description of how their project will meet the needs of the community and at least a letter of support from the municipality, a market study or waiting lists for social or affordable housing in the community.
• Experience: Proponents, or their team, must indicate a minimum of 5 years of experience in the construction/renovation and operation of projects of similar size and scope.
• Financial Viability: Projects must meet the minimum debt coverage ratio (DCR) of 1.10.

• Federal Lands Initiative Application Guide (PDF)
• Energy Efficiency and Accessibility Requirements Guide (PDF)

General inquiries about the National Housing Strategy or technical support

• Phone: 1-800-668-2642 (Business hours: 8 am to 7 pm Eastern Time)
• Email: contactcentre@cmhc.ca