New milestone reached in the rapid construction of 500 highly prefabricated housing units

The governments of Canada and Quebec announced a call for projects by the Société d’habitation du Québec (SHQ) to fund the construction of highly prefabricated multi-unit housing to respond more quickly to the needs of low- and moderate-income Quebec households. Through this initiative, the first batch of 500 units will be built by 2026 as part of a new phase of the Programme d’habitation abordable Québec (PHAQ) for the design and construction of prefabricated buildings.

Co-operatives, offices, housing non-profits and private sector businesses are invited to look at the project submission information on the Société d’habitation du Québec website. The deadline for submissions is March 12, 2025.

These 500 highly prefabricated housing units will be built thanks to the Canada – Quebec Agreement under the Housing Accelerator Fund (HAF), to which the Government of Canada has contributed $992 million. The Government of Quebec has added $992 million to that amount to support the Stratégie québécoise en habitation. These investments aim to create 8,000 social and affordable housing units in Quebec.

PHAQ gets upgrades

The new changes to PHAQ provide additional flexibility in project delivery, clearing the way for the construction of highly prefabricated multi-unit housing. A complete list of all the changes is posted on the PHAQ Web page.

Quotes:

“To build more quickly, we need to think differently and change our practices. This call for projects, involving highly prefabricated housing, clearly demonstrates the proactive and collaborative approach we’re taking so we can increase the supply of affordable housing throughout Quebec. Opening up the potential for prefabricated housing gives us another way to quickly meet the housing needs of Quebec households.”

“In the face of labour shortages and rising construction costs, we must innovate and build affordable housing faster and easier. That's exactly what these investments in modular housing will allow us to do.”

Highlights:

• A request for qualifications to design and build highly prefabricated multi-unit housing was made to consortia last fall. After this call for projects, there will be a period for the selected applicants and consortia to network. The multi-unit housing model will then be developed, followed by factory production and on-site construction with delivery scheduled for 2026.
• Projects submitted must meet the stated regional needs and be supported by the municipality where they will be built.
• Multi-unit dwellings will be medium density with 24 or 36 units and 2 or 3 storeys. They will include bachelor and one- and two-bedroom units, with slight variations in type and layout depending on needs.
• Rents for the new units will be affordable, meeting PHAQ’s affordable housing thresholds as established by the SHQ.
• Launched in March 2023, the Housing Accelerator Fund is a $4-billion Government of Canada initiative to which $400 million was added in the 2024 budget. It aims to accelerate the construction of 112,000 housing units across the country.

About the Société d’habitation du Québec:

As a leader in housing, the SHQ’s mission is to meet the housing needs of Quebecers through its expertise and services to citizens. It does this by providing affordable and low-rental housing and offering a range of assistance programs to support the construction, renovation and adaptation of homes, and access to homeownership.

To find out more about its activities, visit www.habitation.gouv.qc.ca/english.html.

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About Canada Mortgage and Housing Corporation:

Visit canada.ca/housing for the most requested Government of Canada housing information.

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 everyone in Canada has a home they can afford, and that meets their needs.

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Sources:

Justine Vézina
Press Secretary to the Minister Responsible for Housing
justine.vezina@habitation.gouv.qc.ca

Sofia Ouslis
Office of the Minister of Housing, Infrastructure and Communities
sofia.ouslis@infc.gc.ca

For information on this news release contact:

Media Relations
Société d’habitation du Québec
medias@shq.gouv.qc.ca