The Canadian Affordable Housing Trust

The problem

Model 1 sets out the crisis in plain numbers:

Model 2 adds a second problem: the pre-sale. Most new Ontario condos are sold before they are built. The buyer signs years ahead and carries the risk if prices fall. One Toronto buyer reported a $120,000 gap at closing. In the first half of 2024, new condo sales in Toronto and Hamilton fell to 3,159, the lowest since 1997. When buyers stop signing, the buildings stop.

What the proposals find

• Current fixes have not worked at the scale needed. Help for buyers does not create more homes. City rule changes move slowly. Private developers build what is profitable. And the three levels of government each blame the others.
• Public land is the strongest tool, and the riskiest. Crown land is land owned by the federal or a provincial government. It generally does not have to follow city zoning (local rules on what can be built where). That removes the local veto, but such power must be kept in check. Public land is also scarce and often not where people need to live.
• Building groups work elsewhere. In Germany, households build together as a "building group." A German architects' body puts the average saving at about 15 percent. By 2021, a city agency in Hamburg had helped 168 groups with almost 4,000 homes.
• In Canada, each group starts from scratch. One group in Langley, British Columbia, formed in 2015 and broke ground only in April 2025. In Ontario, the rules are unclear and no one helps groups start.

What it proposes

Model 1: the Trust builds

• Who owns the land. Governments lease public land to the Trust for a token price, on long leases. Protected natural areas and greenbelt land are excluded.
• Who can buy or rent. Households qualify based on their income. Renters, essential workers and first-time buyers come first. They commit to buy or rent at cost before building starts.
• Who pays. The Trust borrows from investors such as Canada's large pension funds, by selling bonds. A federal guarantee backs the bonds: Ottawa promises to repay lenders if the Trust cannot. The proposal says this needs no direct tax spending. The first limit would be $50 billion.
• What owners and renters get. Owners buy at cost, without paying for the land. If they sell later, the price can rise only with inflation, so the home stays affordable for the next buyer. The Trust keeps rental homes forever, with rent set as a share of household income.
• Who builds. Private construction firms, hired through open bidding, with every contract published.

Who runs it. A board of fifteen. Five are named by the federal government. Five are independent, chosen by a panel of the Chief Justice of Canada, the Auditor General and the Privacy Commissioner. Five are elected by the Trust's owners and long-term tenants. The Auditor General checks the books. A public website tracks every site and dollar. An independent Housing Ombudsman hears complaints.

A voice, not a veto. The Trust keeps its freedom from zoning only if it meets strict conditions on each site. Nature on the site is studied first, and all safety codes apply. Designs get public review, with future residents involved from the start. Neighbours get a written answer to their comments. Indigenous consultation comes before any land transfer. In the proposal's words, CAHT "skips the maze, not the floor."

What it asks of Ottawa. Create the Trust and name a temporary board within six months. Find and transfer unused public land in and near the twenty largest cities. Allow the guaranteed bonds. The proposal says no new law is strictly needed to start: a cabinet order and a budget line can begin it.

Model 2: residents build, the Trust helps

Here, 20 to 35 households who want to live in the same building form a group. They form their own company, find private land, and hire an architect and a licensed builder. Buildings are low-rise or mid-rise only, such as townhouses or four to six storeys. The land is bought only when every home has a member with a secured mortgage. Members pay in stages, and each owns their home at the end. It should take three to four years in all.

The Trust does not own land or build. It offers five kinds of help:

• A matching service. A public list that matches households into groups, with model contracts.
• Start-up loans. Small loans for the risky first year.
• A loan guarantee. The Trust backs the group's construction loan, so banks will lend.
• A shared safety fund. Each group sets aside about 10 percent for surprises, and the Trust holds a pooled fund behind it.
• A promise in return. Groups that use this help accept the same rule as Model 1: resale prices rise only with inflation.

Protections. Each member is responsible only for their own home. Early risk is a capped planning fee. Mortgages are locked in at signing. Homes carry the new-home warranty.

What it asks. The Trust's board and checks stay as in Model 1. Model 2 asks for a mandate (official permission) for the Trust to do this, starting with pilot groups in Ontario. It also asks for six changes in law, such as charging land transfer tax only once. It needs no public land.

The two models side by side

Why this matters to you

• A home at what it costs to build. Both models sell homes at cost, and resale limits keep them affordable for the next family.
• Less risk for buyers. In Model 2, the mortgage is set at signing. A falling market cannot leave a buyer short at closing.
• A say in your street. Neighbours get a voice in what is built, though not a veto, and future residents help shape the design.

Limits and open questions

• The legal question. Whether public land leased to a non-profit stays free of zoning must be checked by independent lawyers first. If not, the Trust would seek building rights through agreements between governments.
• Model 2 still has risk. If prices fall, owners lose value. Some groups will fail, which is why the safety fund and guarantee exist. It takes time and trust, and it is not for everyone.
• One option among others. Model 2 sits alongside Model 1 and the normal market. It does not try to replace towers.
• A declared interest. The author is an architect. Architects often start building groups, and he could be one of them.