Backgrounder - Backgrounder - First Nations and Northern Housing

On-Reserve Housing

The Government of Canada is committed to helping provide First Nations members living on reserve with the same housing opportunities as all Canadians.

Budget 2009 - Canada's Economic Action Plan - committed $400 million over the next two years to support on-reserve housing, dedicated to new social housing projects, remediation of existing social housing stock and to complementary housing activities.

This support is over and above the federal government's investment of approximately $270 million per year for on-reserve housing needs, including $142 million through Indian and Northern Affairs Canada (INAC) and close to $128 million from Canada Mortgage and Housing Corporation (CMHC). This annual investment contributes to an average of 2,300 new units and 3,300 renovations and also supports social housing, Aboriginal capacity development and other housing-related activities.

In addition to INAC's annual funding of $142 million for housing, the department provides approximately $118 million annually to First Nations on reserve in the form of shelter allowance payments under the Income Assistance Program.

On May 5, 2008, the Government of Canada launched the $300 million First Nations Market Housing Fund. The Fund supports a new approach that provides First Nations people living on reserve a better chance to own their own home, while respecting the communal ownership of the lands. With this Fund it will be easier for First Nation families and individuals to access financing to build, buy or renovate a house on reserve. It is estimated that the Fund will help provide for up to 25,000 new housing units over 10 years. On February 5, 2009, the Fund reached an important milestone as the Miawpukek First Nation of Newfoundland and Labrador became the first First Nations community approved for housing loans backed by the Fund.

Homeownership can bring many benefits to First Nations, including employment growth based on new home construction, increased housing supply, improved quality of life, and opportunities for First Nations families to build equity and generate wealth. As an example, the Huron-Wendat Nation, near Quebec City, has been implementing its own innovative on-reserve ownership program since the early 1970s. Today, there are more than 400 privately owned homes in the community. Through this homeownership program, the First Nation has been able to offer its members up to $2,250,000 each year in loans for building or purchasing homes on reserve. This program has strengthened the community's economic base and increased its stability while alleviating housing pressures associated with overcrowding.

The Government of Canada continues to pursue improved collaboration with provincial, territorial, and First Nations partners in the area of housing. For instance, on May 21, 2008, the Government of Canada signed an historic Memorandum of Understanding (MOU) with the Province of B.C. and the First Nations Leadership Council, agreeing to work together to develop a comprehensive approach to improve housing for First Nations communities, individuals and families both on and off reserve. Through this MOU, the parties have committed to exploring innovative approaches to improve housing and infrastructure.

Housing in the North

The Government of Canada is committed to working with Northerners to improve living conditions through better housing. That is why Budget 2009 committed $200 million over two years in additional dedicated funding for the territories to support renovation and the construction of new housing units.

In 2006 the Government of Canada established the $300 million Northern Housing Trust to respond to the need for affordable housing in the territories.

In Nunavut, the territorial Housing Corporation is using $200 million from the Northern Housing Trust to construct 725 new housing units.

In the Northwest Territories (NWT), the NWT Housing Corporation has used Northern Trust funds to launch the Affordable Housing Plan. With another $50 million from the Government of the NWT, the Corporation will build approximately 530 new housing units.

In Yukon, the Yukon Government has negotiated arrangements with First Nation communities to share that territory's $50 million allotment. The arrangement will see $32.5 million going to First Nations for use as they see fit to address affordable housing needs.