In a move to support housing development across Canada, the federal government has allocated performance-based bonuses to several cities through the Housing Accelerator Fund (HAF). This initiative, introduced in 2022, is aimed at accelerating the construction of new housing units by providing financial incentives to local governments in exchange for implementing policy changes, adjustments to zoning regulations, and streamlined processes that support new housing projects.
Launched in March 2023, the Housing Accelerator Fund has already seen significant investment, and in January 2024, an additional round of funding was announced. The program continues to gain traction as municipalities work to meet their housing targets and address the ongoing housing shortage.
Key Goals of the Housing Accelerator Fund
The core idea behind the Housing Accelerator Fund is to encourage municipalities to make meaningful changes that remove barriers to new housing construction. When a local government applies for funding, it agrees to create an action plan and targets for housing development over a three-year and ten-year period. In return, the federal government provides financial support, helping municipalities implement their strategies to meet these ambitious housing goals.
Initially set at $4 billion, the HAF fund was bolstered by an additional $400 million in Budget 2024. These financial resources are intended to support changes that will result in increased housing production, ensuring that cities can meet the needs of their growing populations.
Bonus Funding for Top-Performing Cities
As part of the program’s latest funding announcement in January 2024, the federal government awarded $73.8 million in performance-based bonuses to 28 cities across Canada. These bonuses were given to communities that met or exceeded their housing targets, adhered to their action plans, and proposed additional initiatives that would accelerate the pace of housing development.
The bonuses, which represent up to 10% of the original funding agreements, are not only a reward for meeting expectations but also an incentive for continued progress. This additional funding serves as a tool to keep the momentum going in cities that are performing well and pushing forward with their housing development strategies.
Calgary and Vancouver Among the Largest Recipients
Among the cities that received notable bonuses, Calgary stands out with the largest award of $22.8 million. This bonus, which is about 10% of Calgary’s original funding agreement of $228 million, reflects the city’s significant progress in achieving its housing goals. The city has expanded its ten-year housing target from 35,000 to 42,667 units, further emphasizing its commitment to addressing the housing crisis.
Vancouver, another major urban center, received $4.4 million as part of its bonus. Along with Surrey, which received $5.1 million, Vancouver is making strides in increasing its housing supply, particularly in light of the region’s high demand for residential properties.
Other top-performing cities that received bonuses include Edmonton ($17.5 million), London, Ontario ($7.4 million), and Coquitlam, BC ($2.5 million). These cities have demonstrated successful implementation of their housing plans and continue to work towards achieving their long-term goals.
List of Cities Receiving Housing Accelerator Fund Bonuses
Here is a detailed list of the cities that received funding through the Housing Accelerator Fund, with a breakdown of the bonus amounts:
- Calgary, AB – $22,843,000
- Edmonton, AB – $17,484,000
- London, ON – $7,391,000
- Surrey, BC – $5,100,000
- Vancouver, BC – $4,375,000
- Kitchener, ON – $4,214,000
- Coquitlam, BC – $2,480,000
- Thunder Bay, ON – $2,077,000
- Waterloo, ON – $1,350,000
- Moncton, NB – $1,280,000
- Saint John, NB – $918,000
- Iqaluit, NU – $887,000
- Sylvan Lake, AB – $540,000
- Edmundston, NB – $415,000
- Bathurst, NB – $320,000
- Grand-Bouctouche, NB – $284,000
- Tsawwassen First Nation, BC – $284,000
- Caraquet, NB – $269,000
- Humboldt, SK – $226,000
- Gibsons, BC – $204,000
- Bow Island, AB – $160,000
- Bowen Island, BC – $160,000
- Tobique First Nation, NB – $142,000
- Tsal’alh First Nation, BC – $142,000
- Dawson City, YT – $118,000
- Bilijk, NB – $71,000
- Lheidli T’enneh First Nation, BC – $71,000
- Brokenhead, MB – $64,000
The Impact of the Housing Accelerator Fund
The performance-based bonuses are not just a reflection of the success these cities have had in accelerating housing development, but also an indicator of where the Housing Accelerator Fund is making an impact. By providing financial support for municipal action plans, the HAF is helping Canadian cities tackle the housing shortage head-on.
As the program progresses, more cities are expected to participate, bringing more innovative strategies to the table. This continued investment is crucial for meeting the housing demands of a growing population, particularly in major urban centers like Vancouver, Calgary, and beyond.
Coldwell Banker Horizon Realty is committed to providing up-to-date insights and analysis on the real estate market in the Okanagan and across Canada. Stay tuned for further updates on how government initiatives, like the Housing Accelerator Fund, are shaping the future of housing development.
The content of this article is for informational purposes only and should not be considered as financial, legal, or professional advice. Coldwell Banker Horizon Realty makes no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of Coldwell Banker Horizon Realty or its agents. Real estate market conditions and government policies may change, and readers should verify the latest updates with appropriate professionals.
