The City of Thunder Bay is making some big steps in the housing front, taking initiative and applying for the new Federal $4 billion Housing Accelerator Fund (HAF), a program to incentivize the construction of new homes, and address the national housing crisis. These funds are intended to fast-track the construction of new housing units nationwide.
The potential gain for Thunder Bay is up to $46 million in federal housing funds. If the application is approved, the City could see the construction of over 2113 units in the next three years, 1592 more than what would be expected without the funds.¹
This “ambitious”¹ application was submitted to Federal Housing Minister Sean Fraser, requesting $45.6 million to support the build of 2,113 new housing units within the next 3 years, to contribute to the federal goal of at least 100,000 new homes. Consideration for the funding is prioritizing municipalities based on their relative level of ambition and policy choices, there areno automatic approvals¹
The status of the CMHC Housing accelerator fund is pending, however it has been received and caught the attention of the Housing Minister. Once the application is reviewed and any additional requests have been answered, the status of the application will be announced.
If the funds are received, the city intends to offer grants to developers of up to $20,000 per unit, or more with incentives encouraging the building of urban infill and affordable housing projects. The Housing Accelerator Fund requests plans, and provides a portion of funding upfront to support the speed, and a portion upon completion.⁶
Letters of support came from organizations throughout the city,
Both Confederation College⁷ and Lakehead University⁴ speaking on their experiences with the increase in international students as well as their demand for student housing, confederation college welcoming the funding to provide the students with the “accessible, safe and affordable”⁷ housing they need, and Lakehead University describing the proposal as “both ambitious and essential”⁴ regarding the housing demands.
The Construction Association of Thunder Bay⁵ asked in their letter of support to consider the City of Thunder Bay’s CMHC application as one “which could be met by Thunder Bay’s construction industry”⁵. This association “has a membership of 230 construction related companies”⁵ making their statement impactful in addressing any concerns of the demand of skilled laborers who will be needed to make this target achievable.
In the supporting letter³ from The Thunder Bay Chamber of Commerce and the Thunder Bay Community Economic Development Commission (CEDC), the upcoming increase in population due to the growth of the mining sector in the Thunder Bay region. The estimate is that 3000-4000 new jobs will be created with the peak being in 2027-2028, as “Thunder Bay is poised to become a key player”³, in regards to mining for critical minerals for the production of sustainable energy solutions.
Mentioned in the application was a recent achievement met by the City of Thunder Bay in cooperation of local builders and investors. The Ontario government has assigned municipalities housing targets, as part of its goal to build a minimum of 1.5 million housing units by 2031. This $1.2 billion provincial fund opens opportunities to financially support community growth through infrastructure improvements, acknowledging the housing supply crisis throughout the province.
With Thunder Bay making a pledge to achieve this target, the city has access to their portion of their allocation, on the condition they achieve 80% or higher. Those municipalities that surpass their goal will be entitled to receive additional funding. The City of Thunder Bay surpassed the 2023 assigned housing target, one of only 9 municipalities who reached their target², making them eligible to receive their allocation of the provincial fund. Having been only one of nine, demonstrating the ambition this city has to attack the housing crisis, mentioned in the HAF fund application.
In 2023, around building permits were issued, showing the demand for housing and the enthusiasm and commitment the community is willing to make to improve the affordability and work around the housing crisis. The city has also taken steps to loosen zoning rules, making it easier to build backyard homes, as well as converting to multi-unit homes.
Sources:
¹ Fact Sheet: City Application to the CMHC Housing Accelerator Fund (HAF)
² Media Release: City beats housing target, applies for $46 million in federal funds
³ Letter: Community Economic Development Commission HOUSING ACCELERATOR FUND
APPLICATION SUPPORT
⁴ Letter: Lakehead University Office of the President Letter of Support, Housing Accelerator Fund
⁵ Letter: Construction Association of Thunder Bay CMHC Housing Accelerator Fund (HAF)
Funding, City ofThunder Bay Application Letter of confirmation and recommendation
⁶ Net NewsLedger: Is Thunder Bay Embarking on a Historic Housing Boom Journey?
⁷ Letter: Confederation College Office of the President Housing Accelerator Fund