Federal Government Commits $85.5 Million to Sustainable Affordable Housing Projects

The Government of Canada, in partnership with the Federation of Canadian Municipalities (FCM), has announced an $85.5 million investment through the Green Municipal Fund to expand sustainable and affordable housing initiatives across the country. The funding will support 21 new projects, including capital and pilot projects and retrofits, as well as planning and feasibility studies aimed at building more energy-efficient, climate-resilient homes.

A Nationwide Push for Sustainable Housing

This funding is part of the Sustainable Affordable Housing (SAH) stream of the Green Municipal Fund, which helps municipalities and non-profit housing providers deliver housing that is both affordable and environmentally responsible. The latest announcement continues the federal effort to reduce energy consumption in Canada’s building sector, a major source of greenhouse gas emissions.

The projects selected span diverse regions and needs, from deep retrofits of existing units to innovative pilot projects that test new approaches to net-zero housing. Planning and feasibility studies will also ensure that future developments are designed with both affordability and sustainability in mind.

Building on Past Results

Since its launch in 2020, the SAH initiative has helped create or renovate more than 4,100 housing units nationwide. These units not only provide affordable homes but also incorporate design elements that lower long-term operating costs, improve energy efficiency, and create healthier living conditions. This dual focus on affordability and sustainability positions the program as a driver of long-term resilience in the housing sector.

Flagship Projects

Among the newly funded efforts is the retrofit of townhouse units at the Sundance Housing Co-operative in Edmonton. This project uses the Energiesprong approach, originally developed in the Netherlands, which can cut building energy use by as much as 94%. Notably, the method allows residents to remain in their homes throughout the renovation process.

Other projects will explore new construction models and technologies that can be scaled to different markets across Canada, offering insight into how sustainable housing can be delivered efficiently at a larger scale.

The Green Municipal Fund

The Green Municipal Fund, managed by the Federation of Canadian Municipalities (FCM) and supported by a $2.4 billion investment from the federal government, has been operating since 2000. To date, it has backed more than 2,700 projects across the country, avoiding nearly three million tonnes of greenhouse gas emissions annually while generating measurable economic benefits, including contributing more than 16,000 person-years of employment, $1.53 billion to national GDP, and $853 million in wages and salaries.

This $85.5 million injection reflects both the urgency of the housing affordability crisis and Canada’s broader commitment to its Green Buildings Strategy, which supports the national target of achieving net-zero emissions by 2050.

The projects supported under this funding round highlight a shift in how Canada approaches housing, with a push towards higher performance standards, reducing both environmental impact and operating costs over time.