Canada launches Build Canada Homes; Ottawa partnership targets up to 3,000 new units starting in 2026

By Tahani Elghazaly
Published January 9, 2026

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The Government of Canada says it has launched Build Canada Homes, a new federal agency designed to build and finance affordable housing at scale through federal land activation and partnerships with provinces and municipalities.

Officials said a key early step is a partnership with the City of Ottawa worth up to C$400 million to accelerate up to 3,000 mixed-income and affordable homes, combining streamlined approvals with Build Canada Homes financing to unlock federal and municipal sites for construction beginning in 2026.

Ottawa is expected to reduce or waive development charges, permit fees, and certain property taxes to speed delivery.

The federal update also cited Direct Build sites moving forward, including an 18-acre federal site in Ottawa (Heron) expected to accommodate roughly 1,100 homes.