Document shows majority of federal affordable homes approved not yet constructed

The response from Canada Mortgage and Housing Corporation, which is dated Nov. 30, says only 1,449 affordable units have been completed.

The federal government has set aside billions of dollars to quickly build affordable housing across the country, but delays in construction suggest many of the projects approved for funding are missing their deadlines.

The Rapid Housing Initiative is a federal program launched in 2020 that provides funding to cities and non-profit organizations to build affordable homes for vulnerable Canadians, including those experiencing homelessness.

The federal government offered $2.5 billion during the first two rounds of project funding, with the condition that approved units must be built within 12 months in most places or 18 months in northern or remote communities.

But a document put together by the Canada Mortgage and Housing Corporation in response to a written question from a member of parliament shows the majority of units approved have not yet been constructed.

The first round of applications closed at the end of March 2021 and resulted in 4,792 units approved for funding, while a further 5,473 got the green light during the second round that closed a year later.

The response from CMHC, which is dated Nov. 30, says only 1,449 units have been completed.

Neither CMHC nor Housing Minister Ahmed Hussen’s office would say how many projects missed the 12 or 18-month deadlines. A CMHC spokesperson, however, acknowledged some projects have been delayed.

“Due to unprecedented circumstances faced by housing developers over the last few years including supply chain disruptions, rising costs and severe weather-related events, some projects are expected to and will take longer, mainly due to infrastructure and construction challenges,” said Leonard Catling.