GrantCanadaProperty Development

Canada Housing Infrastructure Fund

CHIF aims to accelerate the construction and upgrading of housing-enabling drinking water, wastewater, stormwater, and solid waste infrastructure, directly supporting the creation of new homes and increasing densification.

Offered by Housing, Infrastructure and Communities Canada

Amount

Direct Delivery stream: up to $1 billion over eight years; projects at least $1 million and not more than $100 million in total eligible costs (above $100 million case-by-case); PT Agreement stream: $5 billion over 10 years with no maximum total eligible cost per project; total federal funding may cover up to 100% of total eligible project costs, subject to program cost-share limits

Quick eligibility check

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
No requirement stated
Location
Anywhere in Canada

Who can apply

As a housing-enabling program, CHIF requires provincial, territorial and municipal applicants to meet certain conditions that will improve the supply, densification and affordability of housing in Canadian communities. Some, or all of these conditions apply depending on applicant type, community size and location. More information on these conditions and their applicability is available on the individual funding stream pages.

Eligible applicants can apply to either stream, or both streams, depending on their infrastructure needs. However, applicants cannot receive funding from both streams for the same project.

CHIF's Direct Delivery stream is intended for projects with a high level of readiness, as projects must be substantially completed by September 2031. This stream is meant to support pressing infrastructure needs in communities to increase housing development. Projects under the Direct Delivery stream should be between $1 million and $100 million in total eligible costs. To apply, municipalities subject to housing conditions must have already met the housing conditions set out by CHIF, or committed to meeting them.

CHIF's Provincial and Territorial (PT) Agreement stream is intended for projects in their respective province or territory. Under this stream, provinces will be required to contribute a minimum of 33% of eligible expenditures to each project where the Ultimate Recipient is a municipality or regional government.

Applicants seeking support for long-term infrastructure projects that enable housing are encouraged to apply under the PT Agreement stream.

The following applicants are eligible under the CHIF direct delivery stream:

  1. A municipal or regional government Footnote 1 established by or under provincial or territorial statute;
  2. A municipal public-sector body that is established by or under provincial or territorial statute or by regulation or is wholly owned by a province, territory, municipal or regional government, including, but not limited to:
  • Municipally owned corporations (e.g., autonomous organizations owned by municipalities, used to produce or deliver local public services outside the local bureaucracy);
  • Any other form of local governance that exists outside of the municipality description (e.g., local service districts);
  1. An incorporated not-for-profit organization;
  2. A private sector, for-profit body, if it is working in collaboration with an eligible public sector entity, as described above, or with an eligible Indigenous applicant as described below;
  3. An Indigenous applicant,as follows see Indigenous Applicant Guide for expanded definitions.
  • An Indigenous Governing Body, including but not limited to:
  • A band council within the meaning of section 2 of the Indian Act;
  • A First Nation, Inuit or Métis government or authority established pursuant to a Self-Government Agreement or a Comprehensive Land Claim Agreement between His Majesty the King in right of Canada and an Indigenous people of Canada, that has been approved, given effect and declared valid by federal legislation;
  • A First Nation, Inuit or Métis government established by or under legislation whether federal or provincial or territorial that incorporates a governance structure;
  • A not-for-profit organization whose central mandate is to improve Indigenous outcomes;
  • An Indigenous development corporation.

In situations where multiple eligible applicants are working together, one lead applicant must be identified. The lead applicant will enter into the funding agreement with HICC and will be responsible for implementation of the project.

For projects involving a partnership with an Indigenous community or organization, the project is considered Indigenous led if the lead applicant is an Indigenous governing body, not-for-profit organization whose central mandate is to improve Indigenous outcomes, or an Indigenous development corporation. In such cases, please refer to the Indigenous Applicant Guide.

2.2 What types of projects are eligible for funding?

Eligible infrastructure projects must meet all applicable program requirements and support CHIF's objectives and expected outcomes. Eligible projects under CHIF are tied to enabling increased housing supply. For a project to be eligible, applicants must demonstrate in their application that there is a housing need, or that growth is expected in the community where the project will take place.

Eligible projects must also support increased capacity of municipal infrastructure related to drinking water, wastewater, stormwater, or solid waste management, as outlined below. Both capital and planning projectsFootnote 2 are eligible under CHIF.

Capital infrastructure projects include new construction, rehabilitation or expansion projects that result in tangible infrastructure, including hybrid and natural infrastructure, for the following systems:

  1. Drinking water systems, including drinking water treatment facilities, storage assets, pump stations, local and transmission pipes, and natural infrastructure;
  • Examples: A project that increases the treatment capacity of a water treatment plant to accommodate population increases or a project that reduces water losses (leakage) in a drinking water network which reduces total water use and frees up capacity at the water treatment plant to accommodate community growth.
  1. Wastewater systems, including wastewater storage and treatment facilities, lagoon systems, pump/lift stations, sanitary force mains and sewer pipes, combined sewer pipes and natural infrastructure;
  • Examples: A project that expands the linear infrastructure (e.g., sewer pipes) of a sanitary sewer system to accommodate community growth; or a project increasing the treatment capacity of a lagoon to accommodate housing densification efforts.
  1. Stormwater systems, including stormwater drainage pump stations, management facilities, pipes and natural infrastructure;
  • Example: A project that increases stormwater capacity, such as use of dry ponds in a public park in proximity of a planned housing development. The project would result in less stormwater entering the water network, extending system capacity to accommodate community growth in the nearby development.
  1. Solid waste management systems, including landfills, organic waste processing, waste sorting, and thermal treatment .
  • Example: A waste diversion project that diverts organic waste (e.g. food or yard waste) away from a landfill. This would increase the lifespan of the landfill to process waste from the growing communities it services.

Planning projects primarily consist of studies, plans or design work. For a planning project to be eligible for funding, it must support a future capital project that would be considered eligible under CHIF and align with its objectives.

2.3 Eligibility checklist

Before starting an application, applicants should first ensure that they have the authority to create an application for their organization. Applicants should also confirm that their project meets each of the minimum eligibility requirements listed below.

Projects not meeting the criteria below will be deemed ineligibleFootnote 3 :

  1. The applicant is an eligible recipient for CHIF;
  2. The applicant owns or will own the asset or assets, or the applicant has or will have secured all necessary rights and interest in the asset or assets;
  3. The project is for planning, new construction, rehabilitation or expansion of drinking water, wastewater, stormwater or solid waste infrastructure that is primarily for public use or benefit;
  4. The project will increase system capacity or efficiency to enable increased housing supply or to address a housing need;
  5. The project meets housing conditions, if applicable (see Section 2.4 of this guide);
  6. The total eligible cost for the project is at least $1 million, but not greater than $100 million*;
  7. All requested eligible costs and expenditures will be in accordance with CHIF program guidance and are direct and necessary for the successful implementation of an eligible project (see Project finances in section 4 of this guide for an explanation of eligible and ineligible costs); and
  8. The project will be substantially completed (see Glossary for definition) no later than September 30, 2031.
  • Projects above $100M in total eligible costs will be considered on a case-by-case basis. Please contact the CHIF program to discuss your project before submitting an application above $100M in total eligible costs.

Zoning for four (4) units as-of-right

Municipalities in the provinces with populations of 30,000 and above (per the 2021 Census of Population) are required to implement zoning for four units as-of-right (4AOR) in order to receive CHIF funding. This is required to allow for more “missing middle” housing types (e.g., duplexes and multiplexes). Municipalities may submit an application based on a commitment to implement zoning changes to allow 4AOR and may receive conditional approval. Projects will not receive funding until applicable zoning requirements are in place and have been fully implemented. The Government of Canada expects the zoning change to be implemented by Spring 2025.

While encouraged to do so, municipalities with populations of less than 30,000 people, municipalities in the three territories, and Indigenous communities are not required to implement the zoning change to be eligible under CHIF's direct delivery stream.

Development Charge freeze

Municipalities and regional governments with a population of 300,000 or more (see Annex B: List of municipalities subject to Development Charge freezes) must have implemented, or be committed to implementing, a three-year freeze on increasing the cost of development charges prior to submitting an application. The fees must be frozen at the rates that were in place on or before April 2, 2024. The Development Charge freeze must be in place for three consecutive years to encourage more cost-effective development of new housing units.

Applicants subject to this condition are expected to meet this condition as written, to be eligible. However, on a case-by-case basis, HICC may take into consideration alternative measures adopted or to be adopted by municipalities to reduce the cost of construction of new homes and encourage developers to build more homes. Alternative measures will need to be clearly detailed in the application, must be quantifiable, and be in place for a three-year period. HICC reserves the right to accept or not accept these measures. Projects will not receive funding until the DC freeze is in place, or alternative measures have been approved by HICC and been fully implemented.

Development Charges include any local and regional charges and levies imposed by the municipality (on development of new construction) to cover the costs of related infrastructure and amenities. Municipalities may not levy other charges under a different name to offset the freeze.

About the funding

The CHIF program is delivered through two funding streams:

Housing, Infrastructure and Communities Canada (HICC) will deliver up to $1 billion over eight years directly to eligible recipients, such as municipalities and Indigenous communities, to address pressing infrastructure needs and enable more housing.

To support Indigenous-led projects, at least 10% of the funding envelope will be dedicated to Indigenous recipients. In recognition of the unique nature of infrastructure and housing needs in Indigenous communities, eligible projects for Indigenous applicants under CHIF Direct Delivery may include projects that preserve existing capacity or increase reliability and access to drinking water, wastewater, stormwater and solid waste systems to support current and future populations. More information on Indigenous-specific program parameters can be found in the Indigenous Applicant guide.

HICC will provide $5 billion over 10 years to the provinces and territories to administer and deliver funding to their communities that supports provincial and territorial priorities while advancing federal housing objectives. To receive funding, the provinces and territories must enter into bilateral agreements with the federal government.

Show all funding details

The provinces must dedicate a minimum of 20% of their CHIF funding envelope to rural, northern and Indigenous communities. Indigenous projects are expected to be given due consideration by provinces as part of this envelope.

Project selection will be administered by the provinces and territories in alignment with the requirements of CHIF. The provinces and territories will conduct intakes to solicit eligible projects from municipalities and other eligible recipients, perform an initial review, and submit eligible projects to HICC for consideration in accordance with CHIF's objectives.

How much CHIF funding can a recipient receive?

  1. Under the Direct Delivery stream, the maximum total eligible cost for a given project should not exceed $100 million. However, there is no limit to the number of projects that can be submitted by an applicant. Projects above $100 million in total eligible costs will only be considered on a case-by-case basis, so please contact the CHIF team at chif-fcil@infc.gc.ca to discuss the project before submitting an application. For more information on federal cost sharing, please consult the ‘Project finances' section of the Applicant guide. Under the Provincial and Territorial Agreement stream, there is no maximum to the total eligible cost for a project; subject to the remaining available funds.

Is there a minimum total eligible cost for projects under CHIF?

  1. Under the Direct Delivery stream, the minimum total eligible cost for capital projects should be at least $1 million. The $1 million threshold does not apply to planning projects or Indigenous-led projects. The PT agreement stream is intended to fund projects larger than $1 million, however, smaller projects will also be considered. For more information on eligible costs, please consult the ‘Budgeting for project expenses' section of the Direct Delivery Applicant guide or PT Stream Program Guide.

How is the project's federal contribution determined?

  1. Funding amounts are subject to cost sharing and stacking limits, as well as other sources of funding available to the recipient. See the ‘Federal contribution' section of the Direct Delivery Applicant guide or PT Stream Program Guide for more information.

Is CHIF funding stackable with other funding sources (e.g., federal, provincial and municipal)?

  1. Yes. CHIF funding is stackable with other funding sources. However, total funding from all levels of government (including municipal, provincial, territorial and federal) cannot exceed 100% of total project costs, and total federal government funding cannot exceed 100% of total eligible project costs. While total federal funding may cover up to 100% of total eligible project costs, the maximum HICC funding is subject to the program cost-share limits. Applicants are responsible for considering the eligibility criteria and funding limits from all HICC (and other) funding programs, as project costs cannot be duplicated across multiple programs and the lowest stacking limits of other programs may apply to the project. Further, a project cannot receive funding from both CHIF streams. For example, a Direct Delivery project funded at 40% cannot be “topped up” by funding under the PT agreement stream, and vice versa.

Will successful applicants receive funding as soon as their project is approved?

  1. Successful applicants will be eligible to receive funding once funding agreements (i.e., contribution agreements) are in place (i.e., signed by both parties) and, where applicable, all funding conditions including environmental assessment requirements and Indigenous consultation obligations have been met and continue to be met. Eligible expenses will be reimbursed by Canada upon the submission of claims.

What types of projects does CHIF fund?

  1. CHIF will fund either capital or planning projects aimed at building new, or expanding or rehabilitating existing, drinking water, wastewater, stormwater or solid waste infrastructure in order to enable more housing.

Are projects that use natural infrastructure eligible under CHIF?

  1. Yes. Natural infrastructure projects that increase capacity of drinking water, wastewater, stormwater, or solid waste systems could also be eligible for funding. For example, the following components would be eligible: naturalized stormwater retention ponds, vegetated swales, or urban parks and wetlands that can manage stormwater and improve water quality by filtering harmful pollutants.

Are “planning projects” eligible under the Program?

  1. Yes. Planning projects are eligible if the planning is for a capital project that would otherwise be eligible under CHIF. Planning costs for eligible planning projects may include feasibility studies, housing needs assessments, risk assessments, climate assessments, engineering reports, environmental impact assessments, as well as other planning work needed to advance a future capital project that would align with CHIF objectives.

Is the acquisition of land eligible under CHIF?

  1. Land acquisition can be an eligible expense under CHIF, but only if it is for the development of natural infrastructure. For land acquisition expenses to be eligible, the land must be privately owned and not the sole component of the project. Applicants must also demonstrate the need to acquire the land as an integral part of the project for the purposes of natural infrastructure. Note: Funding recipients will have to demonstrate 1) that the land will remain protected for 40 years after the project is substantially completed, and 2) that the purchase price is at or below fair market value.

When can successful applicants begin incurring costs?

  1. Most eligible project expenditures will only be reimbursed if they are incurred after the project has been approved. There are some exceptions – please consult the ‘Budgeting for project expenses' section of the Direct Delivery Applicant guide or PT Stream Program Guide to learn more.