Housing Accelerator Fund

All information is directly from CMHC

The Housing Accelerator Fund – launching in summer 2023 – provides incentive funding to local governments to boost housing supply across Canada. 

The Housing Accelerator Fund provides incentive funding to local governments encouraging initiatives aimed at increasing housing supply. It also supports the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse. 

What Is the Housing Accelerator Fund? 

Federal Budget 2022 announced $4 billion in funding until 2026-27, to launch the Housing Accelerator Fund. 

The Fund is an application-based program with 1 application window in 2023. 

The program is intended to drive transformational change within the sphere of control of the local government regarding land use planning and development approvals. The Fund’s objective is to accelerate the supply of housing across Canada, resulting in at least 100,000 more housing units permitted than would have occurred without the program.  

The Housing Accelerator Fund aims to support lasting changes that will improve housing supply for years to come. 

Eligibility Highlights 

• Local governments in Canada with delegated authority over land use planning and development approvals, including First Nations, Métis and Inuit governments, can apply. 

• Regional districts, provinces or territories are eligible to apply if there isn’t a municipal-level authority. 

Housing Accelerator Fund: Large/Urban Stream 

Incentives for local governments to boost housing supply across Canada. 

The Large/Urban Stream of the Housing Accelerator Fund provides incentive funding to local governments. The funding is meant to remove barriers and support the development of affordable, inclusive, equitable and climate-resilient communities. 

To be eligible for the Large/Urban Stream, applicants must have a population of 10,000+ and be in a Canadian province. Approved participants can use incentive funding for investments in: 

• Housing Accelerator Fund action plans 

• affordable housing 

• housing-related infrastructure 

• community-related infrastructure that supports housing 

The framework for determining the amount of incentive funding includes base funding, top-up funding and an affordable housing bonus. 

NOTE: Municipalities with smaller populations, territories and Indigenous communities should apply for the Small/Rural/North/Indigenous Stream 

Housing Accelerator Fund: Small/Rural/North/Indigenous Stream 

Incentives for local governments to boost housing supply across Canada. 

The Small/Rural/North/Indigenous Stream of the Housing Accelerator Fund provides incentive funding to local governments. The funding is meant to remove barriers and support the development of affordable, inclusive, equitable and climate-resilient communities. 

To be eligible for the Small/Rural/North/Indigenous Stream, applicants must meet one of the following criteria: 

• have a population under 10,000 in any Canadian province 

• be in a territory 

• be an Indigenous government 

Approved participants can use incentive funding for investments in: 

• Housing Accelerator Fund action plans 

• affordable housing 

• housing-related infrastructure 

• community-related infrastructure that supports housing 

The framework for determining the amount of incentive funding includes base funding, top-up funding and an affordable housing bonus. 

NOTE: Larger municipalities should apply to the Large/Urban Stream 

Who is Eligible? 

Eligible applicants include: 

• Local governments within Canada that have delegated authority over land use planning and development approvals with a population* of 10,000 or more 

• In the absence of a municipal-level authority, a regional district or province that has authority for land use planning and development approvals 

*Population based on 2021 census data. 

To be eligible for incentive funding, you’ll need to: 

• present an application, including an action plan that outlines supply growth targets and specific initiatives to grow housing supply and speed up housing approvals 

• have a minimum of 7 initiatives in your action plan    

• commit to a housing supply growth target within the action plan that increases the average annual rate of growth by at least 10%. The growth rate must also exceed 1.1% 

• complete or update a housing needs assessment report (this requirement may be waived if you recently completed or updated a housing needs assessment) 

• agree to follow the program’s reporting requirements 

Fund Details 

Incentive funding can be used for prescribed uses, which fall under 4 categories: 

1. investments in Housing Accelerator Fund action plans 

2. investments in affordable housing 

3. investments in housing-related infrastructure 

4. investments in community-related infrastructure that supports housing 

Funding methodology 

If you qualify, you can receive funding based on your overall growth commitments and projected units that align with priority areas. There are 3 components of the funding framework: 

5. base funding 

6. top-up funding 

7. an affordable housing bonus 

Your committed targets would be included in the action plan and reflected in the contribution agreement, if approved. 

Approval Process  

Evaluation criteria 

We will review all applications to determine if they meet program requirements. We'll use the following criteria:   

• the commitment to increase housing supply (exceeding minimum growth expectations) 

• the relevance of proposed initiatives to the objectives of the Housing Accelerator Fund 

• the effectiveness of proposed initiatives in increasing the supply of housing 

• having a current housing needs assessment report is considered an asset 

Application Steps 

• Assess your local context, including housing challenges and opportunities and determine if the Housing Accelerator Fund is right for you. (Start Now) 

• Develop your action plan that aligns with program requirements. See Appendix A of the Pre-Application Reference Guide (Start Now) 

• Get the necessary approvals for your action plan – for example Chief Financial Officer attestation and/or Council approval. (Start Now) 

• CMHC invites applicants to apply*/Client portal opens for application intake. Submit your application before the submission deadline. (Summer 2023) 

• CMHC evaluates and prioritizes applications. You will be notified of the status of your application. (Summer/Fall 2023) 

• We will confirm the funding amount for approved applicants and email the contribution agreement for signature. (Summer/Fall 2023) 

• Get Council (or equivalent) approval, if not already obtained. (Required before signing a contribution agreement) 

Once approved, you’ll receive the first scheduled advance shortly after the contribution agreement has been executed. (Anticipated for Fall 2023) 

*We will encourage several anticipated growth leaders within the large/urban stream to apply to the Housing Accelerator Fund before the intake portal opens. These are cities that are expected to contribute significantly towards the 100,000-unit target for the program. Considering these cities earlier in the process will help us manage the overall funding envelope. 

Pre-Application Resources  

These resources help you determine if this program is right for you: 

• Pre-Application Reference Guide: Outlines program requirements, including the information you will be required to submit as part of your application 

• Housing Needs Assessment Resource Sheet: Provides general information on how to prepare a housing needs assessment 

• Program Highlight Sheet: Summarizes the key aspects of the program 

We’ll offer information sessions to support potential applicants. Sign up to be notified about upcoming information sessions and when the application intake window opens.