An Update on the Canada Housing Infrastructure Fund
The Canada Housing Infrastructure Fund (CHIF) is allocated $5.7 billion over 10-years. Funding ramps up over 6 years, reaching a peak of $972 million in planned spending in 2029-30. Funding was initially allocated primarily to the provincial and territorial agreements stream. However, agreements have not yet been signed with three of Canada’s largest provinces and if agreements are not signed, the $3.0 billion in HICC funding allocated for these provinces would be reallocated to the direct delivery stream. The CHIF is just one of a wide range of transfer payments to sub-national government to support infrastructure.
In April 2024, the Government of Canada announced the Canada Housing Infrastructure Fund (CHIF) as part of its new Housing Plan. The CHIF is administered by Housing, Infrastructure and Communities Canada (HICC) and intended to support the supply of additional housing. It aims to do so by:
- Contributing to the fiscal capacity of subnational governments to invest in the infrastructure needed to support additional housing; and
- Requiring subnational governments to agree to conditions that support the supply of additional housing.[^1]
Through the 2024 Budget, the Government of Canada announced its intention to allocate $5.7 billion over 10 years for the CHIF. Funding ramps up over 6 years, reaching a peak of $972 million in planned spending in 2029-30. Of the $5.7 billion in funding allocated for the CHIF, $4.76 billion was initially allocated for the provincial and territorial agreements stream, and $0.98 billion was allocated for the direct delivery stream.
PBO based on data provided by HICC.
PBO based on data provided by HICC.
To date, HICC has signed CHIF agreements with British Columbia, all Atlantic provinces, Manitoba, Saskatchewan and the Territories. The initial window to finalize agreements has passed, but the deadline has been extended and negotiations are ongoing.[^2] Under the CHIF program terms, if no HICC agreements are signed for Ontario, Quebec, or Alberta, the $3.0 billion in HICC funding allocated for these provinces (63% of funding for the stream), will need to be reallocated to the direct delivery stream. The difference between the funding initially allocated for British Columbia and the agreement signed for $250 million has already been transferred to the direct delivery stream.
HICC has also committed $369.5 million in funding under the direct delivery stream to 25 projects, mostly related to upgrading water and wastewater infrastructure to be able to meet demand from proposed developments.[^3]
HICC provides a wide range of transfer payments to sub-national governments to support infrastructure. Some funding is ongoing, while other funding is provided through limited duration commitments. Over the period of 2017-18 to 2029-30, the largest HICC infrastructure transfer payments are:
- The Canada Community-Building Fund (formerly the Gas Tax Fund): $34 billion;
- The Investing in Canada Infrastructure Program:[^4] $26 billion;
- Various Public Transit funds: $17 billion;[^5] and
- The 2014 10-year New Building Canada Fund: $12 billion.[^6]
PBO based on data provided by HICC.
PBO based on data provided by HICC.
The CHIF is not explicitly framed as a renewal of any existing funding stream. However, it does ramp up across 2028-29 to 2029-30 at a time when other time-limited funding is declining, partially mitigating the decline in real transfers in those years.
PBO based on data provided by HICC.
PBO based on data provided by HICC.
Purchasing power is based on the implicit price index for general governments gross fixed capital formation, including the PBO economic model’s projection for that price index.