Ottawa Seals $400 Million Housing Deal, Launches Eight Projects

Ontario Construction News staff writer

The City Council of Ottawa has approved a groundbreaking partnership with the federal government to build 3,000 affordable and market rental homes in the city.

This agreement, made with the newly established federal agency Build Canada Homes (BCH), opens up to $400 million in joint municipal and federal funding. BCH, which started operations in September 2025, aims to increase the availability of mixed-income housing across the country.

At the same time as the council’s approval, on April 23, the city announced that eight projects are already moving forward as part of this first phase of collaboration.

“Together, these projects will deliver over 1,100 new community housing homes across eight wards, exceeding early targets and supporting residents in communities throughout the city,” Debbie Stewart, Ottawa’s general manager of strategic initiatives, noted in a memo to the mayor and council.

Construction for this initial group of projects is set to begin later this year or early 2027 to quickly provide new housing options. The first 1,123 units will be owned and managed by non-profit organizations as affordable and supportive rental homes.

To make sure low- and middle-income families can access these new homes, about 78 percent of them – totaling 881 units – will be affordable for households earning up to the sixth income decile.

The broader agreement for 3,000 homes is split into two main development streams. As part of this deal, the city will receive $150 million from federal funds to support at least 1,000 homes from its existing shovel-ready Affordable Housing Pipeline.

Geyser Place

Meanwhile, BCH will offer surplus federal lands for developing an additional 2,000 homes. This construction on federal land will focus on a mixed-income model that encourages diversity among residents while ensuring local workers can afford housing. The target breakdown for these properties includes:

1,200 homes at market rates. 800 affordable units aimed at moderate-to-low-income families. Among those affordable options, there are plans for 200 units targeted towards deep affordability supported by rent supplements.

The City of Ottawa is contributing between $200 million and $245 million in value to aid construction. This assistance includes waived fees and charges along with an expedited approval process and property tax exemptions for affordable homes built on federal land to help keep operating costs manageable.

Stewart mentioned that coordinating federal funding with municipal goals alongside local non-profit expertise lowers overall delivery risk while speeding up timelines and ensuring quality outcomes. Including supportive housing units also emphasizes a shared commitment from both levels of government towards vulnerable populations.

The city’s staff continue discussions with BCH regarding remaining project funding details; updates should follow once negotiations conclude.

2475 Regina

Phase 1 projects – Ottawa-Build Canada Homes partnership

The initial pipeline under the Ottawa-BCH agreement consists of 1,123 units across eight wards. The approved developments include a mix of affordable (A) and supportive (S) housing:

200-201 Beausoleil Dr. (Ward 12): 159 units (A) built by Ottawa Community Housing. Geyser Place / formerly known as 3380 Jockvale Rd. (Ward 3): 118 units (A) built by Ottawa Community Housing. 58 Capilano Dr. (Ward 9): A total of 20 bedrooms within four townhomes providing independent living with onsite supports (S), built by Ottawa Salus.
240 Presland Rd. (Ward 13): 64 units (A) constructed by Centretown Citizens Ottawa Corporation (CCOC). 1770 Heatherington Rd., Phase 1 (Ward 10): Totaling90 units (A) developed by Ottawa Community Housing. 100 block of Hickory St. (Ward15): Offering110units(A)builttogetherby Centretown Citizens Ottawa Corporation(CCOC). 2475 Regina St.(Ward7):266units(A/S)builttogetherby Nesting Ground, inpartnershipwith Windmill Developments, Parksway House. Perley Health, andthe Ottawa Aboriginal Coalition. 384 Arlington Ave.(Ward14):296units(A/S)builttogetherby Nesting Ground, inpartnershipwith Windmill Developments. Perley Health. Operation Come Home, the Ottawa Aboriginal Coalition, andthe Ottawa Korean Community Church.

Total subtotals: There are currently a total of123unitsincluding881affordableunitsand48supportiveunits.

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