Canada Launches 1.5 Billion Dollar Fund to Protect Affordable Rentals

Canada has launched a $1.5 billion federal fund to help nonprofit organizations, housing cooperatives and Indigenous governments acquire existing rental properties and preserve affordable homes. Announced on September 22, the Canada Rental Protection Fund aims to protect 7,000 rental units over five years by preventing properties from leaving the affordable housing sector.

The initiative, announced in Budget 2024 and incorporated into the Build Canada Homes framework, will provide grants and low-interest loans to eligible organizations. According to the federal government, the program is designed to preserve existing affordable housing while expanding long-term community ownership.

Ray Sullivan, board chair of the Canadian Housing Acquisition Fund, which will administer the program, said Canada's housing strategy must address losses in the existing rental market alongside new construction.

"This is one of the gaps in the National Housing Strategy," said Sullivan.

He cited a national ratio of one government-assisted affordable home built for every 11 affordable homes lost in the private market. In Ottawa, he said, the ratio reaches one to 30, highlighting the challenge facing housing providers in some communities.

Sullivan described the growing interest in acquisition-based programs as a "welcome shift." He said nonprofit ownership can help stabilize rents and reduce the risk of tenants being displaced when buildings change hands.

"We know that when non-profits — instead of a REIT, speculator, or private owner — buy these buildings, they will stabilize those rents and those tenancies are more protected," said Sullivan.

The fund also responds to concerns raised by housing advocates about existing properties losing their affordability after sales. Sullivan said the program would help preserve these homes for current residents and future community use.

"What we’re doing is taking an asset and moving it into the non-market column. That not only stabilizes those tenancies and those rents, but then becomes an asset that is removed from the speculative private market," said Sullivan.

The program follows a model established in British Columbia, where a similar fund launched with $500 million and has distributed more than half of its initial funding, according to The Globe and Mail. Eligible organizations will prequalify before identifying buildings and submitting acquisition proposals for review.

Properties generally must have at least 40 percent of their units priced at 30 percent of the median renter household income. Applications will also be assessed against local housing needs, existing rents and the depth of affordability within each building.

Approximately $1 billion of the federal fund is expected to be distributed through low-interest loans, while about $480 million will be provided as grants, Sullivan said. The loans will have 10-year repayment terms, allowing funds to return to the program for future use.

T’Brenn Kelly-McKinnon, chief investment officer of the Canadian Housing Acquisition Fund and interim chief executive officer of British Columbia's rental protection fund, said the federal initiative is envisioned as a 30-year program. Its organizers intend to deploy most of the initial funding within five years.

The fund's launch comes amid concerns about displacement in Yellowknife. In September, the Yellowknife Women's Society sought public assistance after all 26 of its Housing First clients received eviction notices following property sales involving six apartment buildings acquired by Balto Capital Inc. and a separate notice from Northview, according to the society's statements reported by Cabin Radio and CKLB Radio.

Sullivan said the situation reflected a broader national concern about affordable housing being lost when private owners sell rental buildings.

"This is the pattern we see across the country," said Sullivan.

He described the consequences of changes in ownership as potentially extending beyond rent increases to the loss of housing for vulnerable tenants.

"When that ‘for sale’ sign goes up on the front yard, the next result is tenants out on the streets. Whether it’s through rapid rent increases, through rent evictions, whatever it is – we see that displacement," said Sullivan.

Sullivan reiterated the imbalance between construction and losses in the existing market, arguing that new supply alone cannot address the problem.

"When we look at the statistics across the country, for every one new affordable home that’s built with government assistance, we’re losing 11 in the private market," said Sullivan.

He acknowledged that building new affordable housing remains necessary but argued that preserving existing homes must also be part of the response.

"doesn’t work when there’s a giant hole in the bottom of the bucket and we’re actually losing ground," Sullivan said, describing an approach focused exclusively on construction.

The program is intended to help approved organizations move quickly when properties become available for purchase.

"You need to be able to beat the private market," said Sullivan.

However, the fund does not cover ongoing operating expenses, including property management, maintenance staff and security. Frédérique Dombrowski, a spokesperson for the Canadian Housing Acquisition Fund, told Cabin Radio that assistance would cover property acquisitions and work needed to keep units safe and viable, but would not include continuing operating subsidies.

Tony Brushett, executive director of the Salvation Army in Yellowknife, said the organization was unlikely to apply because it lacks the resources to become a landlord, despite operating a men's shelter and transitional housing.

"sounds great," Brushett said of the initiative.

He explained that purchasing a building would require operational support beyond the acquisition itself.

"The barrier for us would be becoming a landlord," said Brushett, "which we can’t do without the promise of a ton of operational funding for a property manager, maintenance staff, and likely even security."

The Canadian Housing Acquisition Fund has begun assembling a seven-member investment committee to review proposals and had received dozens of applications since the program's announcement, according to Sullivan. Organizers aim to help participating groups complete property acquisitions in early 2027.

Sullivan said the longer-term objective is to establish community-owned housing as a durable part of Canada's affordable rental supply, with the possibility of additional contributions from the federal government if the program succeeds.

"This is about more than protecting the affordability we have today, it’s about growing the community housing sector for the future. Every home acquired becomes part of Canada’s community housing stock for the long term, creating lasting affordability and a stronger foundation for communities across the country," said Sullivan.