Investing in affordable homes in Hamilton

Every Canadian deserves a safe and affordable place to call home. The COVID-19 crisis has made it clear that affordable housing is key to Canada’s recovery as communities across the country, including those in Hamilton, are dealing with the devastating impacts of rising levels of homelessness and housing need.

Today, the Honourable Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible for Canada Mortgage and Housing Corporation (CMHC), alongside the Honourable Filomena Tassi, Minister of Labour, the Honourable Marco Mendicino, Minister of Immigration, Refugees and Citizenship, and Bob Bratina, Member of Parliament for Hamilton East – Stoney Creek, met with Fred Eisenberg, Mayor of Hamilton, to discuss investments from Budget 2021: A Recovery Plan for Jobs, Growth, and Resilience and to announce Hamilton will be receiving $145.6 million in funding from the federal government for the repair and regeneration of 6,290 affordable housing units.

Many of these units will be for priority vulnerable groups, with almost half of the units dedicated to seniors across the city.

This funding is being delivered through CMHC’s National Housing Co-Investment Fund (NHCF), which supports new and revitalization construction of mixed-income, mixed-tenure, and mixed-use affordable housing. The NHCF is a key pillar of the Government of Canada’s National Housing Strategy (NHS).

Budget 2021, announced just last week, makes $750 million in NHCF funding available in 2021 – 22 and 2022 – 23. This will accelerate the creation of 3,400 new units, and the repair of 13,700 units.

Quotes:

“Every Canadian deserves a safe and affordable place to call home. Today’s announcement for the rejuvenation of nearly 6,300 affordable homes across Hamilton will improve the living standards and housing conditions for thousands of vulnerable residents and families across Hamilton. This comes on the heels of last week’s federal budget proposing an additional $2.5 billion and a reallocation of $1.3 billion in funding to speed up the construction and repair of over 35,000 additional housing units. This is the National Housing Strategy at work.”

“Today’s announcement of $145 million to repair 6,290 affordable community housing units in Hamilton is historic. This is an investment that will improve lives and make our city a better place. I am proud to have worked hard with Hamilton’s affordable housing and anti-poverty advocates as well as with my Liberal colleagues to have achieved it. When people have safe and stable housing they gain the confidence to succeed and achieve their potential.”

“Current events remind us that nothing is more important than a home. Hard working middle-class families in Hamilton deserve a safe and affordable place to call home where they can thrive and spend more time with their loved ones. This investment will ensure that the existing affordable housing supply operated by the City of Hamilton is in good repair and will serve the needs of its residents for years to come.”

“Housing is about dignity. This investment is a crucial step towards ensuring that the most vulnerable among us have access to the housing and supports that meet their needs, including our seniors. As a result of today’s announcement, we are acting to meet the unique housing needs of our city so that residents of Hamilton can be safe and can continue to thrive.”

“On behalf of my Council colleagues, we are grateful for this historic contribution from the Government of Canada. Safe, affordable housing is a critical determinant of health and wellbeing in a community, which is why addressing homelessness and affordable housing remains a top priority for Hamilton City Council. This funding demonstrates our collective commitment to safe and dignified housing for vulnerable members of the community and supports much needed repair and renewal — improving accessibility and energy efficiency — to a large portion of affordable housing units that will continue to provide critical affordable housing for thousands of Hamiltonians in the years to come.”

Quick facts:

• CityHousing Hamilton is receiving two loans over a 9-year period under the NHCF for a total of $145.6 million in financial support: That includes a $58.2 million forgivable loan and a $87.4 million repayable loan.
• All 6,290 units under this agreement will exceed NHCF affordability criteria, with an average lease rate of 61.4% of Median Market Rent (MMR).
• A minimum of 20% of the 6,290 units will meet NHCF accessibility requirements.
• The project aims to reduce greenhouse gas (GHG) emissions and improve energy efficiency by 25% respectively over the applicable building code.
• With a budget of $13.2 billion, the NHCF gives priority to projects that help people who need it most, including women and children fleeing family violence, seniors, Indigenous people, people with disabilities, those with mental health or addiction issues, veterans and young adults.
• Through the NHCF, the Government of Canada will work with partners to build up to 60,000 new affordable homes and repair up to 240,000 existing affordable and community homes.
• Under the NHCF, investments are also planned to create or repair at least 4,000 shelter spaces for victims of family violence, as well as create at least 7,000 new affordable housing units for seniors and 2,400 new affordable housing units for people with developmental disabilities.
• To help Canadians find affordable housing, Budget 2021 proposes to provide an additional $2.5 billion over seven years in new funding and a reallocation of $1.3 billion in previously announced funding to speed up the construction, repair, and support over 35,000 additional housing units.
• In Budget 2021, $750 million in existing funding under NHCF is proposed to be advanced to 2021 – 22 and 2022 – 23. This will accelerate the creation of 3,400 new units, and the repair of 13,700 units. $250 million in existing funding will also be allocated to support the construction, repair, and operating costs of an estimated 560 units of transitional housing and shelter spaces for women and children fleeing violence. Advancing these funds will help the Government to address gender-based violence.
• Canada's National Housing Strategy (NHS) is a 10-year, $70+ billion plan that will give more Canadians a place to call home — this includes more than $13 billion committed through the 2020 Fall Economic Statement.

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.

Information on this release:

Mikaela Harrison
Office of the Minister of Families, Children and Social Development
mikaela.harrison@hrsdc-rhdcc.gc.ca

Audrey-Anne Coulombe
Canada Mortgage and Housing Corporation, Media Relations
acoulomb@cmhc-schl.gc.ca

Jen Recine
City of Hamilton, Communications
jen.recine@hamilton.ca