Build Canada Homes Investment Policy Framework is a welcome first step. Here’s what should happen next

This article is part of the “Housing as essential social infrastructure” series.

On November 22, 2025, the federal government released the Build Canada Homes (BCH) Investment Policy Framework. It communicates how BCH will select, prioritize, and support affordable housing projects. 

Maytree welcomes the framework as an important step toward building affordable housing at scale. The framework is aligned in several ways with our recommendations on BCH, most notably the income-based affordability definitions, including rent levels tied to very low incomes. This firmly establishes the opportunity for BCH to benefit the people who are most in need.  

As the federal government and BCH develop more specific operational plans, we see several opportunities to build on the framework’s foundation. 

1. Prioritize deeply affordable housing for very low-income households 

Although the framework clearly defines affordability, it lacks details on how the affordability component of proposals will be assessed and prioritized. We encourage BCH to adopt an explicit focus on proposals that support very low-income households and ensure that deeply affordable supply is a core and non-negotiable outcome of federal investment.  

To help achieve this goal, the government should consider adding additional affordability criteria, such as targets for the number or proportion of units that must meet its affordability definition, and the duration that operators are expected to keep the units at affordable rates. As the Neha Review Panel recently said in its final report, Canada should “clearly define affordable housing supply targets for the lowest income groups, and support only those projects that guarantee long-term affordability.” 

2. Embed the right to housing and a human rights-based approach 

The framework does not mention that it is the legislated policy of the Canadian government to progressively realize the right to adequate housing, nor does it take an explicit human rights-based approach. Once more drawing from the Neha Review Panel, Canada should “adopt a rights-based, intersectional approach to housing policy that reflects diverse lived realities.” Explicitly embedding this commitment in BCH’s mandate and in its public communications would help align investment decisions to Canada’s legislated housing rights obligations. 

For example, the framework notes ongoing stakeholder engagement, which we welcome. However, BCH should go further by creating formal structures for engagement with the people and communities who are directly affected by housing precarity and the grassroots organizations that work with them. The people who will ultimately live in BCH-supported homes must have a meaningful seat at the table in shaping policies and priorities. 

3. Unlock more value through government ownership of housing 

While the investment of $13B over five years in BCH is welcome, it is not nearly enough in comparison to Canada’s affordable housing deficit. Maytree continues to advocate for a new ownership model that could unlock billions in additional investment without a substantial impact on Canada’s fiscal deficit. Instead of transfer payments for others to build and own rental housing, the government could buy existing housing or retain ownership of housing built on government land. Because it would own the amortizable asset, this approach would result in a much lower immediate fiscal impact. 

The only impediment to a more ambitious housing agenda would be our borrowing capacity – which the recent federal budget boasts is exceedingly strong compared to other nations. By collecting rent remitted from a non-profit housing operator, the government could offset much of the long-term fiscal impact of owning an affordable housing portfolio. 

The BCH Investment Policy Framework furthers the goal of building deeply affordable housing at scale across Canada. With a bit more purpose and creativity, and guided by a commitment to human rights, this could be a truly nation-building initiative.