Innovative Partnership Aims to Increase Affordable Housing

Vancouver, British Columbia, August 21, 2019

In another boost for hard-working Canadians, the Government of Canada is helping unlock at least $400 million worth of funding with the objective to build over 2000 units over the next two years in communities hit hardest by housing affordability.

Through the National Housing Strategy’s Affordable Housing Innovation Fund, $20 million is being invested in a new lending institution called HPC Housing Investment Corporation (HI-C). With this innovative financing model, HI-C will create and offer bonds in capital markets to investors at long-term fixed interest rates, generating funding for affordable housing providers and their projects. This investment in HI-C will showcase how a relatively small investment can be maximized to increase its impact on the affordable housing sector.

The Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard, on behalf of the Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) made the announcement today.

The first round of financing is complete and valued at approximately $33.1 million for two projects in BC and Alberta:

Railyard Housing Co-op – Community Land Trust (CLT) – Vancouver, BC: This 15-storey, 135-unit affordable housing building was formerly part of the east end Olympic Village. In Partnership with the City of Vancouver, CLT offers homes targeted to low-to-moderate income families, couples, seniors and individuals, with more than 10 homes provided at shelter rates. HI-C is providing take-out financing for this project at a 40-year fixed rate.
Parkdale Housing Development Project – Capital Region Housing Corporation – Edmonton, AB: Two buildings providing affordable housing to 136 low-to-moderate income families, couples, seniors and individuals in north-central Edmonton. HI-C is providing take-out financing for the two buildings, which were fully occupied at the end of 2018.

Quotes:

“With the federal government’s strategic investment in affordable housing providers this will undoubtedly open up new growth opportunities in the housing sector, and facilitate the development of more affordable housing stock in our city. This forward thinking solution is exactly what the National Housing Strategy’s Affordable Housing Innovation Fund is all about. I am looking forward to seeing the results of our government stepping up to help HI-C effectively meet the growing demands for affordable housing not only in the Great Vancouver Area, and B.C., but across Canada.”
— The Honourable Jonathan Wilkinson, Minister of Fisheries, Oceans and the Canadian Coast Guard

“HPC Housing Investment Corporation's innovative approach offers more financing options for affordable housing providers. Regardless of size or funding need, HI-C provides the financial expertise and underwriting required to bridge the gap between housing providers and debt investors. I am pleased to see the expansion of this model to support the development of social and affordable housing across the country."
— Shayne Ramsay, Chair and President, HPC Housing Investment Corporation and CEO, BC Housing

Quick facts:

The federal government’s initial $20 million commitment will create a new $400 million pool of funding for projects across Canada.
CMHC worked closely with HI-C providing guidance, feedback and education on the development of this new financial funding model.
HI-C is a federal non-share corporation with three founding members: BC Housing, Manitoba Housing Renewal Corporation and Ontario’s Housing Services Corporation.
The Affordable Housing Innovation Fund is providing $200 million over 5 years for projects that showcase new funding models and innovative building techniques, lowering the costs and risks of financing affordable housing projects.
The Government of Canada is currently rolling out its National Housing Strategy (NHS), an ambitious 10-year, $55 billion plan that will create 125,000 new housing units and lift 530,000 families out of housing need, as well as repair and renew more than 300,000 housing units and reduce chronic homelessness by 50 percent.

Associated links:

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC’s aim is that by 2030, everyone in Canada has a home they can afford, and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.

To find out more about the National Housing Strategy, visit www.placetocallhome.ca.

To learn more about the HPC Housing Investment Corporation, visit www.housinginvestment.ca