Game-Changing Government Moves: Build Canada Homes Gets Royal Assent & New Incentives Unleashed

Toronto, ON – July 12, 2026

Comprehensive update on the latest developments shaping Canada’s construction landscape. Recent federal and provincial actions, regulatory changes, and new incentives are creating significant opportunities—and challenges—for our sector. Here’s what you need to know:

Build Canada Homes Act Receives Royal Assent

The federal government has officially established Build Canada Homes as a Crown corporation, with a mandate to accelerate the delivery of affordable housing nationwide. This new agency will:

• Provide flexible financing and leverage public land for large-scale affordable housing projects.
• Partner with provinces, municipalities, Indigenous communities, and private/non-profit sectors.
• Enable innovative construction methods and streamline project approvals.
  Already, over 11,000 new homes are underway or nearing construction through direct-build projects and partnerships.

Provincial and Federal Government News

Major Investments: Joint federal-provincial funding is supporting thousands of new affordable units in Quebec, Ontario, Alberta, and PEI, with a focus on vulnerable populations and seniors.
Infrastructure Upgrades: New funding for water, wastewater, and community infrastructure is unlocking housing growth in municipalities across the country.
Development Charge Relief: Ontario and Canada have launched an $8.8 billion Development Charge Reduction Program, incentivizing municipalities to lower fees and accelerate housing starts.

Building Code Changes and Industry Impact

B.C. Building Code Update: A fall 2026 clarification will ease the path for detached backyard suites, though internal suite conversions still face regulatory hurdles. There is growing advocacy for more flexible, performance-based codes similar to Ontario’s Part 11, which streamlines renovations and additions by focusing on life safety over rigid structural requirements.
National Push for Modern Methods: Governments are encouraging modular, prefabricated, and mass timber construction to address labour shortages and speed up delivery. Ready-made federal housing designs are now available to developers to cut costs and approval times.

New Government Incentives

Housing Accelerator Fund: Direct funding for municipalities and non-profits to fast-track approvals and adopt innovative construction methods.
Tax Relief: Expanded HST/GST rebates on new homes and targeted tax reforms are being implemented to improve project viability and affordability.
Local Government Grants: B.C. and Ontario are providing grants to municipalities that exceed housing targets, supporting infrastructure and process improvements.

CUSMA and Trade Impacts

While the Canada-United States-Mexico Agreement (CUSMA) continues to shape supply chains and material costs, recent government investments in Canadian supply chains and clean energy infrastructure are designed to strengthen domestic capacity and reduce reliance on imports. Construction leaders should monitor evolving trade and procurement rules for potential impacts on project delivery and costs.

How GTA Strategies Can Help

GTA Strategies is ready to assist your organization in navigating these changes and capitalizing on new opportunities:
Contact us today to discuss how we can support your projects and help you thrive in this rapidly evolving environment.