The $1.7 Billion Housing Supply Fund Act

The Housing Supply Fund Act proposes a $1.7 billion transfer from the federal government to provinces and territories. The goal is to incentivize faster housing construction by reducing bureaucratic barriers. specifically development charges and permitting timelines that currently add months and significant cost to new home builds.

Every Canadian who rents or hopes to buy a home is affected by this bill. Developers, municipalities, and provincial housing ministries will be directly impacted. The bill targets first-time buyers and renters in high-cost urban markets like Toronto, Vancouver, and Calgary, where supply shortfalls have driven prices to historic highs.

If passed, provinces that reduce development fees and permit timelines below federal benchmarks receive access to a proportional share of the $1.7 billion. The money can be used for housing infrastructure, land acquisition, and municipal support.

The bill passed first reading in the House of Commons on March 26, 2026. It is currently at second reading, where Members of Parliament debate the bill's principles before it moves to committee review.