Carney's Build Canada Homes (BCH) Announces First Development Project

On October 14, 2025, Build Canada Homes announced its first concrete development project—540 homes at the Arbo Downsview site in Toronto, alongside a $283 million federal infrastructure investment that will catalyze construction of up to 63,000 homes in Toronto's Downsview area. The announcement marks exactly one month since Prime Minister Mark Carney launched the $13 billion federal housing agency on September 14, 2025.

Build Canada Homes First Project: Key Facts

Arbo Downsview Development Specifications:

• Location: Downsview area, Toronto, Ontario
• Total Units: 540 homes
• Affordable Housing: Minimum 40% of units
• Unit Mix: Studios, one-bedroom, two-bedroom, and three-bedroom homes
• Construction Method: Factory-built housing, prefabrication, modular construction, and mass timber
• Target Market: Middle-class families
• RFQ Launch: Week of October 14, 2025
• Requirement: Design-Build teams must prioritize Canadian materials (lumber, steel, aluminum, mass timber)

What is the Black Creek Infrastructure Investment?

The federal government, through the Canada Housing Infrastructure Fund (CHIF), will invest up to $283 million to expand Toronto's Black Creek sewer system. The City of Toronto will contribute an additional $425 million, bringing total investment to $708 million.

Black Creek Sanitary Trunk Sewer Project Details:

• Federal Investment: $283 million (via CHIF)
• Toronto Investment: $425 million
• Total Project Cost: $708 million
• Infrastructure: 17 kilometers of new sewer infrastructure
• Current System Age: Built in 1960s
• Current Users: Serves 350,000+ residents
• Problem: System stretched beyond capacity, causing flooding and blocking new housing approvals
• Homes Enabled: Up to 63,000 new homes
• Additional Residents Supported: 130,400
• Jobs Created: 65,000+ jobs once complete
• Immediate Jobs: Construction and engineering careers during build

Who is Leading Build Canada Homes?

Ana Bailão serves as Chief Executive Officer of Build Canada Homes. Her background includes:

• Toronto City Council member (over 10 years)
• Deputy Mayor of Toronto (2017-2022)
• Chair of Planning and Housing Committee
• Board member of Toronto Community Housing
• Created Housing Now program using city lands for affordable housing
• Former Head of Affordable Housing at Dream Unlimited (private developer)

What is Build Canada Homes?

Build Canada Homes launched on September 14, 2025, as a Special Operating Agency within Housing, Infrastructure and Communities Canada (HICC). The agency will transition to a standalone federal entity in early 2026.

Build Canada Homes Mandate:

• Build transitional and supportive housing
• Develop deeply affordable and community housing for low-income households
• Partner with private developers for middle-class affordable homes
• Transform public-private collaboration
• Deploy modern construction methods
• Catalyze a new Canadian housing industry using domestic materials

Initial Funding: $13 billion in federal capital

Minister Responsible: The Hon. Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

Build Canada Homes Initial Investments (September 2025)

1. Federal Land Development Program

• Sites: 6 initial locations (Dartmouth NS, Longueuil QC, Ottawa ON, Toronto ON, Winnipeg MB, Edmonton AB)
• Initial Homes: 4,000 factory-built homes
• Full Portfolio Capacity: Up to 45,000 units
• Approach: Direct-build model with Build Canada Homes overseeing construction
• Focus: Affordable mixed-income communities

2. Canada Rental Protection Fund

• Investment: $1.5 billion
• Purpose: Help community housing sector acquire at-risk apartment buildings
• Goal: Maintain long-term affordability of existing rental housing

3. Nunavut Housing Partnership

• Total Units: 700+ public, affordable, and supportive housing units
• Off-Site Construction: Approximately 30% of units
• Methods: Factory-built housing and innovative construction

4. Affordable Housing Fund Top-Up

• Investment: $1.5 billion in additional loans
• Timeline: Starting 2025-26
• Expected Units: 5,000+ new affordable units
• Program: Affordable Housing Fund New Construction Stream

Why Was Build Canada Homes Created?

Canada Mortgage and Housing Corporation (CMHC) estimates Canada needs between 3.2 and 4.8 million new housing starts by 2035 to restore affordability. Current construction rates are insufficient:

Toronto Housing Crisis Statistics (2025):

• On pace for lowest annual housing starts in 30 years
• Condominium construction down 60% in first half of 2025
• First-time homebuyers require nearly 4 years to save for down payment nationally

What is the Buy Canadian Policy?

Build Canada Homes operates under the federal government's Buy Canadian policy, which requires:

• Prioritization of Canadian lumber, steel, aluminum, and mass timber
• Strengthening domestic supply chains
• Scaling up home-grown housing industry
• Creating high-paying careers across Canada
• Maximizing Canadian resources in construction

What Are Modern Methods of Construction used for BCH?

Build Canada Homes emphasizes factory-built housing and modern construction methods:

Factory-Built Housing Benefits:

• Speed: Up to 50% faster construction timelines
• Cost Reduction: Economies of scale in manufacturing
• Quality Control: Controlled factory environment
• Waste Reduction: Precise manufacturing reduces construction waste
• Weather-Independent: Year-round production
• Job Creation: Manufacturing sector employment

Construction Methods Prioritized:

• Factory-built modular housing
• Prefabrication
• Mass timber construction
• Standardized components
• Off-site manufacturing

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What's Coming in Budget 2025?

Finance Minister François-Philippe Champagne announced that Budget 2025 (scheduled for November 4, 2025) will include:

• Additional measures to lower costs for builders
• Incentives to catalyze private capital in homebuilding
• Policies to double the pace of housing construction across Canada
• Spending reductions on government operations to fund housing investments

As Minister Champagne stated: "Our full, ambitious plan — to be detailed in Budget 2025 — will lower costs for builders, catalyse private capital investments, and double the pace of homebuilding across Canada."

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Build Canada Homes vs. CMHC: What's the Difference?

While Canada Mortgage and Housing Corporation (CMHC) continues operating, Build Canada Homes has distinct functions:

Build Canada Homes:

• Directly builds and finances affordable housing
• One-stop shop for affordable housing programs
• Takes direct control of development projects
• Manages federal land portfolio for housing
• Focuses on non-market and below-market housing
• Partners with private sector on specific projects

CMHC (Continuing Functions):

• Delivers market housing programs
• Provides Apartment Construction Loan Program
• Offers Mortgage Loan Insurance products
• Conducts housing market research and insights
• Continues existing affordable housing programs until funding depleted
• Supports overall housing system well-being

Infrastructure as Housing Enabler: The New Paradigm

The October 14, 2025 announcement represents a paradigm shift: recognizing that housing construction requires supporting infrastructure investment.

As Minister Robertson explained: "Homes for families can only be built if the drinking water, stormwater, and wastewater infrastructure is in place to support them."

Infrastructure-First Approach Benefits:

1. Removes approval barriers for housing developments
2. Prevents flooding and infrastructure failures
3. Enables long-term density increases
4. Creates construction jobs immediately
5. Supports population growth sustainably

Toronto Mayor Olivia Chow emphasized the partnership: "This investment from the federal government, alongside the City of Toronto's $425 million contribution, builds on that momentum, helping us unlock new housing opportunities and transform communities like Downsview."

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What Industry Experts Are Saying

Carl Laffan, Toronto-based architectural design manager, noted in his analysis that less than 1% of Build Canada Homes' federal land portfolio is located within Canada's three most populous cities, stating: "This will not materially impact supply or affordability in our densest urban locations where land value and demand is at its highest."

The Royal Architectural Institute of Canada (RAIC) supported the initiative publicly, urging: "The RAIC strongly supports the intent of Build Canada Homes and urges the federal government to recognize architecture and design as essential to its success."

Timeline: Build Canada Homes Major Milestones

September 14, 2025: Prime Minister Mark Carney launches Build Canada Homes with $13 billion commitment, announces Ana Bailão as CEO

September 19, 2025: Minister Robertson highlights Build Canada Homes in Vancouver and Toronto announcements, announces $1.5 billion Affordable Housing Fund top-up

October 14, 2025: Build Canada Homes announces first development project (Arbo Downsview, 540 units) and Black Creek infrastructure investment ($283 million)

Week of October 14, 2025: RFQ launches for Arbo Downsview Design-Build teams

November 4, 2025: Budget 2025 tabled with additional builder incentives and housing measures

Early 2026: Build Canada Homes transitions from Special Operating Agency to standalone federal entity

Coming Months: Additional site announcements, RFQ results, construction begins on initial projects

How This Affects Developers, Builders, and Entrepreneurs

Immediate Opportunities:

• Submit qualifications for Arbo Downsview RFQ
• Develop factory-built housing expertise and capacity
• Establish Canadian materials supply relationships
• Partner with Indigenous communities on housing projects
• Position for Budget 2025 incentive programs

Medium-Term Strategic Positioning:

• Invest in modern construction methods capabilities
• Scale manufacturing capacity for modular/prefab housing
• Develop mass timber construction expertise
• Create portfolio demonstrating affordable housing track record
• Build relationships with Build Canada Homes team

Market Implications:

• Increased demand for Canadian building materials
• Factory-built housing industry expansion
• More public-private partnership opportunities
• Infrastructure-enabled development sites
• Potential regulatory streamlining in Budget 2025

Frequently Asked Questions About Build Canada Homes

Q: When will construction begin on Build Canada Homes projects?A: The Arbo Downsview RFQ launched in October 2025, with Design-Build team selection expected in coming months. Construction timelines depend on team selection, approvals, and design completion. Black Creek infrastructure construction is also beginning, with specific timelines to be announced.

Q: Who can apply to build Build Canada Homes projects?A: Design-Build teams with proven expertise in factory-built housing, modern construction methods, and commitment to using Canadian materials can respond to RFQs as they are released.

Q: Will Build Canada Homes only build affordable housing?A: Build Canada Homes focuses primarily on non-market housing but will partner with private developers to build affordable homes for the middle class. Projects include transitional housing, supportive housing, deeply affordable housing, community housing, and mixed-income communities with affordability requirements.

Q: How does someone access Build Canada Homes housing?A: Specific tenant selection processes will be announced as projects near completion. Deeply affordable units will likely use existing affordable housing waitlists; middle-class affordable units may have income thresholds.

Q: What federal lands are available for Build Canada Homes projects?A: Build Canada Homes has access to 88 federal properties suitable for housing, spanning 463 hectares (approximately the size of downtown Ottawa). Initial sites are in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton, with additional sites to be announced.

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