I was lucky enough to participate in some of the consultations for the first National Housing Strategy (NHS) a decade ago. It was exciting – the federal government was about to jump back into non-market community housing[1] after a long and difficult absence.

It was a big deal, for three reasons:

1. The feds were back, with a significant commitment,
2. It was a 10-year strategy, when we weren’t used to getting long-term commitments from government, and
3. It was a financial commitment that grew from $50 billion to over $100 billion.

The National Housing Strategy Act also recognized the right to housing in Canada, for the first time.

We know that it wasn’t all perfect, but it was still a big deal.

CMHC, as the federal government’s lead on NHS delivery, didn’t have the flexibility and the tools it needed to get the job done.

The biggest single envelope, the Rental Construction Financing Initiative (now the Apartment Construction Loan Program) delivered questionable affordability outcomes.

Urban, rural, and northern Indigenous housing was recognized a priority in the NHS consultations, but dedicated funding wasn’t committed until Budget 2023, and most of that still hasn’t made it into communities.

Despite these shortcomings (and I know you can name others) it’s still a big deal. But the first NHS is reaching the end of its lifecycle. Many program and funding envelopes have already ended. By March 31, 2028, most existing NHS commitments will have run their course. That's not far away.

The federal government will soon launch formal consultations on the second iteration of the national housing strategy: NHS 2.0. In fact, they are receiving recommendations from CHRA and other interested groups.

 

What do we need to see in NHS 2.0? 

First, we need to address some of the things that were missing or underemphasized in NHS 1.0.

• A lack of intergovernmental coordination has been a major weakness in Canada’s response the housing crisis. The federal government must play a leadership role in fixing that. NHS 2.0 must clearly articulate the expected role for each order of government: the federal government and its agencies, including CMHC and Build Canada Homes; provincial and territorial governments; municipalities; and First Nations and Indigenous governments.
• Focus on the whole housing system. The housing system is interconnected, from multi-million-dollar mansions to people living in encampments, and the strategy needs to take a deliberate systemic approach.
  • Within two years of launching the NHS, the federal government was introducing new initiatives. Some had unintended consequences, like the first-time homebuyer program stimulating demand and driving up purchase prices. Others were welcome, but could have used some field-testing, like successive rounds of the Rapid Housing Initiative. A strategy is more than a collection of programs; it needs to be an integrated plan.
  • Most importantly, a systems approach means shifting from focusing on individual buildings and units, to focusing on the system that builds, preserves and operates housing. NHS 2.0 should include tools that build sector capacity and scale (the Community Housing Transformation Centre is high on our list), support portfolio-level growth, and strengthen non-market community housing sector infrastructure
  • We have to ditch the “trickle-down” supply side thinking and move beyond the idea that affordability challenges can be solved simply by increasing the supply of expensive housing. Housing supply matters, but government investment should be targeted to households that are not adequately served by the private market. That means prioritizing community housing for moderate-, low- and very low-income households.

Targeting government interventions where they are needed most also supports a rights-based approach. NHS 2.0 should use the Build Canada Homes income-based affordability framework to clearly articulate how housing inventions will support the progressive realization of the right to housing for each income band in the framework.  While we know that scaling up non-market community housing also gives options for median and moderate-income households, it is especially important for low and very low-income households.

We need to more than double the share of non-market community housing over the term of the next National Housing Strategy, from our current 4.5% to at least 9%, as we work towards a longer-term goal of a 20% share. Within that growth we also need to quadruple the supply of Indigenous-led community housing.

NHS 2.0 and the federal budget in Fall 2026 must also strengthen key elements of the existing housing system:

1. Federal-Provincial and Federal-Territorial Agreements: among other things, FPT bilateral agreements fund 30,000 Canada Housing Benefits, and renovation funding for existing housing stock. FPT agreements are a significant NHS commitment, and governments are at the negotiating table right now to renew and extend them. So here’s what we would like to see in the new versions:
   1. Extension and expansion of Canada Housing Benefits: these can become an important source of deeper affordability in new community housing.
   2. Significant investment in preservation, repair, and renewal of existing community housing properties: the existing stock is a mix of legacy federal, provincial and federal-provincial.

• Operating funding for supportive housing: whether it comes from the federal government, or from provinces, NHS 2.0 must include operating funding and wrap-around supports that help many people live independently. We know that investments in housing save money on health and hospital costs, so let’s invest health and social spending dollars in supportive housing to realize better social and economic benefits over time.

2. Recapitalize Build Canada Homes: The “initial” capitalization of $13bn for BCH falls short of the Liberal election commitment of $35bn. Budget 2026 needs to bring the total up to the 2025 election commitment and ensure a stable, predictable, extended timeline for BCH funding and financing.
3. Prioritize Indigenous-led community housing: top priorities should come first, not last. We’re please that the Budget 2023 commitment of $4bn for urban, rural, and northern Indigenous housing is finally moving forward, but the job isn’t finished. NHS 2.0, and its associated funding commitments, must prioritize Indigenous-led community housing up-front, not as an afterthought years later.
4. Reaching Home: local coordination around homelessness response and prevention services is crucial. Reaching Home provides funding and infrastructure to support that local on-the-ground coordination. It must be expanded and extended.
5. Housing Accelerator Fund: HAF has been used to accelerate all housing development. It has also been used to directly fund new non-market community housing in many municipalities. Sometimes that local funding helps new projects get to shovel-readiness before direct federal funding and financing is available.
6. Sector Transformation: We need to more than double the supply of community housing and work towards a 20% share of Canada’s housing stock. To reach that ambitious goal, we must build a lot more sector capacity in every part of the country. The Community Housing Transformation Centre is a sector-led resource to transform the community housing sector and prepare us to work towards a 20% market share. Current NHS funding runs out in March 2028, but dollar-for-dollar it has had greater impact than much larger funds administered directly by federal agencies.

NHS 2.0 is an opportunity to build on what worked, address what didn't, and apply the lessons learned over the past eight years. Having—and keeping—the federal government at the table is a big deal. The housing crisis did not emerge overnight, and it won't be solved overnight. But sustained federal leadership matters. As consultations begin, let's be clear about our priorities, ambitious in our goals, and ready to work together to get the job done.

[1] We didn’t call it “non-market” or even “community housing” back then: What’s in a Name? Get the Job Done. - Canadian Housing & Renewal Association