December 2, 2025

On November 22, Build Canada Homes (BCH) released its Investment Policy Framework. Under the Framework, BCH “… will prioritize projects that include the following features: 

• Ready to Build: Construction ready to begin within 12 months; 
• Affordability: Depth and duration of affordability that meets local needs, supports community stability and creates capacity in non-profit housing; 
• Innovation & Speed: Leverage modern construction methods like modular and factory-built housing to cut costs and speed up delivery; 
• Strong Partnership: Collaborative projects and bundled submissions for regional impact; and 
• Made in Canada: Use Canadian materials to strengthen supply chains and support local manufacturing.” 

In terms of affordability, “BCH will use an income-based definition of affordability that is applicable to the reality of diverse regions and income groups. The definition assumes that housing is affordable when rents are no more than 30% of before-tax income (based on median household income of an area). Rent levels would be assessed against the local median household income levels.” 

There is also an expectation that proposals “Demonstrate a clear need for BCH support in order for the project to proceed, and present a sustainable financial model that does not rely on ongoing operational funding.” 

BCH also desires increased accessibility as well as sustainable designs that use lower-carbon construction materials and projects that “… strengthen climate resilience, and optimize long-term operational performance.” 

BCH “Funding may be used to cover various costs including, but not limited to:  

• Construction costs (labour, materials, supplies); and  
• Land or building acquisition for new builds and redevelopment; 
• Project proposals which integrate the use of modern methods of construction or technologies, such as factory-built construction; and  
• Firm-level investments in factory-built housing manufacturing capacity, to the extent that they are directly needed as part of a large-scale housing development or portfolio-level opportunity.” 

The Federal Government expects that provinces and municipalities “… will help identify and advance priority projects with BCH including by providing land, accelerating the approval process, and waiving applicable fees.” 

BCH has developed a portal for organizations with shovel-ready projects aligned with their framework.  

September 23, 2025

As mentioned in previous updates, on September 14, the Federal Government announced the launch of Build Canada Homes, a program intended to build affordable housing at scale. On August 28, UDI submitted feedback to Housing, Infrastructure and Communities Canada on the Build Canada Homes (BCH) Market Sounding Guide. Priority recommendations include:  

• Recapitalize or replace key federal loan programs (ACLP, MLI Select);
• Provide loan guarantees so banks can finance projects with lower presale thresholds;
• Develop attainable homeownership programs accessible to all builders;
• Avoid imposing additional standards that increase costs and delay delivery;
• Align BCH with provincial and municipal housing programs while addressing fees and approval timelines.  

More information can be found in the official announcement. 

September 9, 2025

On August 28, UDI submitted feedback to Housing, Infrastructure and Communities Canada on the Build Canada Homes (BCH) Market Sounding Guide. With Canada’s housing market facing its deepest downturn in decades, urgent federal action is needed to restore the capacity of market builders, who deliver 95% of new homes. Without immediate support, housing starts will continue to decline, further undermining affordability and jobs. 

UDI supports the program’s proposed mix of loans, guarantees, equity partnerships, and attainable homeownership opportunities, but stressed these must be implemented quickly and without new cost burdens. These programs must also be accessible to market builders, who have the experience and capacity to deliver the majority of new homes Canadians need. Priority recommendations include: 

• Recapitalize or replace key federal loan programs (ACLP, MLI Select);
• Provide loan guarantees so banks can finance projects with lower presale thresholds;
• Develop attainable homeownership programs accessible to all builders;
• Avoid imposing additional standards that increase costs and delay delivery;
• Align BCH with provincial and municipal housing programs while addressing fees and approval timelines. 

UDI’s full recommendations can be reviewed in the letter.