💰 New homebuilding funds

Together with

SiteJobs

Good morning! ⬆️ Germany has one. Japan has one. The U.S. has one. They are giant towers that rise hundreds of feet in the air but nobody lives in them. Why? These towers are used to test elevator equipment in extreme scenarios.

⏰ Today’s read: 5 minutes

MARKETS

Economy:  The Canadian government faces a potential financial loss on the sale of the Trans Mountain pipeline as its current value is estimated below its $34.2-billion construction cost, according to a report by the Parliamentary Budget Officer (PBO). While the pipeline's worth is projected between $29.6 billion and $33.4 billion, depending on long-term contract renewals, factors such as market conditions, sale timing, and buyer interest will influence the final sale outcome.

THE BIG STORY

Future homebuilding: Canada unleashes two new funds

As Canada grapples with a housing crisis, Ottawa has launched a two pronged approach: the Canada Housing Infrastructure Fund (CHIF) and the Regional Homebuilding Innovation Fund (RHII). Together, these initiatives aim to enhance housing availability and modernize construction practices across the country.

Canada Housing Infrastructure Fund (CHIF)

In April 2024, the Canadian government announced the Canada Housing Infrastructure Fund, allocating $6 billion over ten years to support critical infrastructure that enables housing development. This fund is divided into two main streams: $1 billion for municipalities to address urgent infrastructure needs, and $5 billion for provinces and territories to secure agreements that promote long-term housing supply initiatives.

Why it matters: The CHIF focuses on essential services such as drinking water, wastewater management, stormwater systems, and solid waste infrastructure - all critical components for new housing. Here’s how the Federation of Canadian Municipalities put it:  “For every new home built, there must be a corresponding investment in infrastructure.” This initiative is expected to facilitate the construction of approximately 12,000 new homes over the next three years.

Timelines and requirements: Provinces must secure agreements by January 1, 2025, or risk losing their allocations to municipalities. The fund aims to ensure that communities of all sizes, including northern, rural, and Indigenous populations, benefit from these investments.

Regional Homebuilding Innovation Fund (RHII): We can’t just build more. We need to build smarter. Complementing the CHIF is the Regional Homebuilding Innovation Fund, which will invest $50 million over two years starting in 2024. This initiative aims to revolutionize homebuilding practices by supporting innovative solutions such as modular construction, 3D printing, and climate-resilient building techniques.

Driving innovation: Administered by Canada’s regional development agencies, the RHII provides interest-free loans of up to $5 million for projects that demonstrate innovative approaches to residential construction. Less than 1% of revenue is reinvested in R&D in construction, according to McKinsey, while automotive and aerospace invest 3.5% and 4.5% respectively. This helps de-risk innovation efforts and enable innovators like these to swing for the fences. 

A Holistic approach: Both the CHIF and RHII represent a comprehensive strategy by the Canadian government to address housing challenges through infrastructure investment and innovative construction practices. But these funds don’t matter if they aren’t utilized. Builders and communities have an opportunity to turbocharge housing construction. Let’s hope they take it.

NEED TO KNOW

The week's headlines

Big dig: 🌊 Metro Vancouver is starting work on the $495-million Stanley Park Water Supply Tunnel, a major infrastructure project designed to replace an aging 1930s water main and enhance the resilience and capacity of the regional water system. The new 1.4-kilometer tunnel will run deep beneath Stanley Park and feature three construction shafts.

Battery low: 🪫 Umicore, a Belgian materials technology company, has announced an indefinite pause on its planned battery materials plant in Loyalist, Ontario, to maximize existing plant capacity as it reevaluates its battery materials business strategy. This decision will shift North American supply of high-nickel cathode materials to its Cheonan, Korea, plant instead.

Prompt payment: 💰 Alberta has proposed amendments to ensure consistent prompt payment rules across all construction projects, extending the Prompt Payment and Construction Lien Act (PPCLA) requirements to both public and private sectors. Previously, these rules primarily applied to private sector projects.

Water bill:💰Calgary has request over $1.5 billion in major water infrastructure projects for 2025, aimed at addressing population growth and recent infrastructure failures. To fund these projects— which include two new feeder mains, a new water treatment plant, and significant upgrades to two wastewater treatment plants—the city seeks approval to borrow over $1 billion, to be repaid via utility bills and off-site levies over a maximum 25-year term.

PROJECT SPOTLIGHT

Higher education

The York University Markham Campus (YUMC) is the first university campus in Markham. This multi-level academic tower is a gateway for York Region’s post-secondary community, with features such as cantilevers, curves, and large windows that maximize sunlight and create engaging spaces for teaching and research.

PROJECT UPDATES

Vancouver approves False Creek park designs

BC Hydro completes reservoir filling of Site C Dam

Ontario takes next step toward Hamilton LRT construction

Renderings released for Heather Lands development

Norway House Cree Nation purchases Minago nickel-PGM project

Get our full breakdown of the week’s project updates in the link below

WHAT WE’RE TALKING ABOUT

PHOTOS: Site C Dam’s reservoir is filled up

READ: 🏠 Canadian rent actually went DOWN 

REPORT: 👀 Calgary is the top real estate market to watch 

READ: 🚗 Gardiner Expressway work 1 year ahead of schedule

VIDEO: 🏗️ Is Canada’s supertall skyscraper in crisis?

TOP CONSTRUCTION JOBS

🔥 Check out all roles up for grabs right now at SiteNews Jobs or put your job post in front of tens of thousands of construction professionals here. Hurry up before our free trial ends!

Struggling to fill a role? send us an email at [email protected] to connect with one of our specialized recruitment experts.

ADVERTISE WITH SITENEWS

Get your message and brand in front of Canada’s construction leaders and decision-makers by advertising in our newsletter. Learn how to partner with us here.

Here’s to a great rest of the week!

Disclaimer: SiteNews is an independently-operated news website. Views expressed are that of the editorial team and are based on publicly available information unless otherwise noted through sponsored content.