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BCNPHA was pleased to see that Federal Budget 2026, tabled on November 5th, reaffirmed the federal government’s role as a primary funder and leader in housing delivery. The budget featured meaningful commitments to non-market and supportive housing including recapitalization of Build Canada Homes and a systems-approach to delivering housing in Canada.
BCNPHA and non-profit housing providers have been calling on governments to provide a reliable investment pipeline after two years of the community housing sector grappling with uncertainty. This budget sets us in that direction, while clearly outlining the roles and responsibilities in housing delivery of each level of government, with the federal government providing leadership, funding, and enabling conditions.
What is in Budget 2026
A key question ahead of this year’s budget was what the federal government’s vision for housing will be, given the complexity of multiple realities facing Canada today. The budget outlines a system approach to delivering housing with three pillars supported by a $44.7 billion investment in housing over 10 years:
Pillar 1: Ending Homelessness in 10 years
Pillar 2: Expanding Non-Market Housing
Pillar 3: Building a Housing Market that Works for All
What We Are Excited For
The recapitalization and expansion of Build Canada Homes, and the inclusion of a systems-based approach to deliver a spectrum of housing and supports is well aligned with calls from the non-profit housing sector’s advocacy. While we know that an additional $13 billion will be accounted for quickly and likely before the target of 200,000 homes is reached, we are hopeful that further details in the years to come on what will replace the National Housing Strategy will identify opportunities for further recapitalization of Build Canada Homes as the strategy moves forward.
There are many highlights, signaling the federal government sees non-market housing as critical to both creating affordability and for boosting Canada’s economy, including the adoption of targets for the homes delivered through Build Canada Homes, something BCNPHA and our partners have advocated for. Now, at least 10% of investments through Build Canada Homes will go to Indigenous-led projects and the total housing investments set out in the budget aim to deliver 200,000 homes in the next decade.
Setting a goal to end homelessness is a welcome focus of the budget, and it is a goal our sector shares. Through Pillar 1 in the strategy, the budget reaffirms the importance of adequately funded supportive housing as the reliable, long-term solution to ending homelessness. The federal government also draws the connection between a stable home, health, and recovery, which is significant support for the supportive housing model.
The $17 billion investment to create new supportive housing integrated with other support services demonstrate what British Columbians already know and is grounded in evidence-based research – supportive housing is the solution to homelessness rather than enforcement measures that temporarily address public safety concerns. The programs outlined in the budget, including an Integrated Supports Fund and Health Infrastructure Fund, are also well aligned with what supportive housing providers in BC have been calling for.
What We Are Watching
While the budget provides the foundation for a strong path forward to addressing Canada’s housing crisis, there are key considerations we will continue to advocate for.
Indigenous-led Housing
The proposed investments for Indigenous-led housing will be delivered through a distinctions-based approach, which could create barriers to access for some Indigenous providers, primarily those who are not affiliated with a formal Indigenous government and are providing housing in an urban area. Given there is no further clarity in this budget on the implementation of a previously committed $2.8 billion investment in Urban, Northern, and Rural Indigenous housing, advocacy is needed to ensure investments are distributed effectively and equitably.
Protecting Existing Affordable Homes
A key area that the budget does not address is the protection of existing homes in the community housing sector. There are no targeted investments to support retrofits and renewals in the community housing sector in Budget 2026. Due to the deferred maintenance and the approaching expiry of operating agreements that keep housing affordable to those most in need in communities, many existing affordable homes are at risk. If this remains unaddressed, we run the risk of building new affordable homes to replace lost affordable homes, meaning we will not move the dial. Building new homes and protecting the ones we have is the most efficient path forward – as replacing existing affordable housing is more costly than protecting it.
As Pillar 2 of the strategy proposed in the budget references Bilateral Housing Agreements with Provinces and Territories, we will be watching closely to see if new agreements are made that provide much needed extensions on operating agreements and the subsidies delivered through them, for those that need it to continue operating deeply subsidized housing.
Affordability Targets
We would also like to see further targets committed to through Build Canada Homes as non-market delivery alone will not guarantee the level of affordability needed to build homes for all. Targeted investments in non-profit housing are needed to deliver truly affordable housing for Canada’s lowest-income households. More than four million households in Canada earn below $50K annually and in BC alone, 12,500 new affordable homes are needed each year for the next decade to address the housing gaps for households below that income threshold.
The existing framework relies on the non-profit and private sectors for the delivery of non-market housing. There is only one sector mission-driven toward affordability, and it will require the work of all non-profit housing providers to ensure that the non-profit and co-op share of available funds outpaces the private market share.
Final Thoughts
Federal Budget 2026 has provided an opportunity that the non-profit housing sector has been advocating for – a reliable investment pipeline. This means non-profit housing providers who are ready to build have a clearer path forward to delivering the housing their communities need. For projects in the early stages of development work, this budget signals the confidence needed to proceed. The strategy provides a clearer sense of the federal government’s leadership role, the roles of other levels of government, and how the housing industry will work collaboratively to support a whole system approach.
While advocacy from the non-profit sector was reflected throughout the budget, BCNPHA will continue to advocate for strengthened pathways to building deeply affordable homes, protecting existing affordable housing, and funding the supports needed for those with complex needs to remain housed.
The scale of the investment does not yet align with the goal of ending homelessness despite being a powerful starting place with a clearer roadmap ahead. All governments investing in supportive and transitional housing will need to pay increasing attention to flow within the housing system, to ensure that people who require support receive it, and those who no longer do, have affordable homes to move into. The significant buildout of supportive and transitional housing in BC has brought this lesson to the forefront.
Budget 2027 provides important leverage with real dollars on the table as our new provincial government picks up the mantel of addressing homelessness and affordability in communities throughout BC. The provincial role in the partnership is clearer because of this budget, meaning we can get to work quickly. We look forward to more implementation details to come as the federal government provides further insights on the full new housing strategy in the future, and to working with the Province to ensure BC can take full advantage of the direction the federal government has set in motion.