Ottawa approves spending plan for $176.3 million in federal funding for affordable housing

Ottawa City Hall (CTV News Ottawa)

Councillors on Ottawa's planning committee have approved a plan to spend $176.3 million in federal funding to help build more houses over the next three years.

The allocated money is promised to the city through the Housing Accelerator Fund (HAF), which is a $4 billion federal fund to build more houses at an accelerated pace.

The city said in a news release on Wednesday 90 per cent of the $176.3 million will be allocated to building affordable housing projects by non-profit housing providers, and the remaining 10 per cent will be spent on other initiatives, such as accelerating disposal and preparation of city-owned lands for housing, streamlining planning approvals, implementing an affordable housing community improvement plan, and preparing a new comprehensive zoning by-law.

“Allocating most of the HAF funding to non-profit housing providers would align with the action plan for these funds that Council approved in July 2023. The action plan includes an affordable housing pipeline initiative that recognizes there are thousands of affordable units planned by non-profit housing providers that are awaiting capital funds to proceed,” reads the release.

The federal government announced Ottawa's share of funding under the HAF in February, committing the city to nine initiatives to deliver up to 4,450 new homes over the next three years. The initiatives include funding the construction of non-market affordable housing, expanding high-density housing around LRT stations and main streets and supportg the conversion of vacant office space into housing.

Staff say the city of Ottawa will receive the $176.3 million in four equal advances of $44 million each, with the first payment made when the city enters into the agreement.

While growth targets require issuing building permits for more than 37,500 new units by the end of 2026, 5.5 per cent of those new units – 2,067 homes -- should fall into the category of affordable houses.

Council will approve the plan on April 3.