Building tomorrow's housing solutions, today
Through the Regional Homebuilding Innovation Initiative, the Government of Canada is investing $50 million over two years, starting in 2024–2025, to support local innovative housing solutions across the country.
The Regional Homebuilding Innovation Initiative provides support to pursue new approaches for building houses, including designing and upscaling modular homes, the use of 3D printing, mass timber construction, panelized construction, as well as implementing net-zero and climate resilient homebuilding practices.
Delivered by Canada's regional development agencies, this initiative is helping businesses and organizations enhance the local housing supply chain and advance innovation in the residential construction sector. By investing in projects that will change the way houses are built across the country, more Canadians will have a place to call home, faster.
The Regional Homebuilding Innovation Initiative is an important part of Canada's Housing Plan and is supporting the residential homebuilding supply chain and changing the way industry builds homes in Northern Ontario through investments that will:
- advance innovative homebuilding solutions, and
- boost manufacturing efficiency within the homebuilding sector.
As communities and businesses continue to assess how to make housing more attainable and affordable for Canadians, FedNor is working with other federal departments and agencies, as well as provincial and territorial governments, to address residential housing supply chain needs.
FedNor is one of several federal departments, agencies, and crown corporations that are delivering targeted assistance to accelerate and strengthen residential housing supply chains across Canada.
Eligible applicants
- Incorporated small and medium-sized enterprises (SMEs);.
- Incorporated not-for-profit organizations;
- Indigenous (First Nation/Métis/Inuit) businesses and organizations;
- Municipalities and municipal organizations.
Eligible activities
Eligible activities include those currently eligible under FedNor's Regional Economic Growth through Innovation program that advance innovative housing solutions and boost manufacturing efficiency and output, including:
- Investing in manufacturing and construction technology to increase productivity and output in the housing sector, such as modular and mass timber construction.
- Assisting firms in adapting, adopting and scaling innovative construction methods such as prefabrication/modular construction, net-zero housing, 3D printing, and net-zero and climate-resilient housing practices.
- Investing in innovation, demonstration, and commercialization that accelerates the construction of homes.
- Scaling existing manufacturers that produce panelized construction and inputs such as prefabricated drywall, trusses, cement, windows, and doors, etc.
- Developing industry tools that accelerate construction innovation through the improvement and adoption of off-site construction technologies and practices.
Eligible costs
Eligible costs include:
- Project-specific cost of labour (e.g., wages and benefits) and of material used;
- Capital costs: purchase of machinery, equipment and infrastructure;
- Operating costs that are incremental, measurable and directly related to the project;
- Professional, advisory and technical services fees;
- Costs related to intellectual property;
- Preproduction costs (e.g., technological development and commercial demonstrations);
- Commercialization costs;
- Costs related to expanding or maintaining markets; and
- Subcontracting costs
Note: Applicants are encouraged to consider Canadian materials and content, where such materials and content are competitive and available.
Ineligible costs
Any costs deemed not reasonable and/or not directly related to housing innovation activity are deemed ineligible, including:
- Regular maintenance and/or ongoing operation costs;
- Regularly scheduled capital expenditures and/or asset replacement;
- Refinancing of an existing debt;
- Costs of amortization and goodwill;
- Acquisition of land and buildings;
- Basic research;
- The purchase of any assets for more than the fair market value of the said asset; and
- Costs for which the applicant has entered into a legal commitment/incurred prior to the eligibility date.
Funding conditions
For commercial projects:
- Assistance available for small and medium-sized enterprises (SMEs) is generally repayable and normally up to a maximum of $500,000 per project.
- The amount of the awarded contribution will be based on the minimum amount required for the project to proceed.
- Applicants are eligible to receive up to 50% of eligible and supported project costs.
- Total government funding (including federal, provincial and municipal) for a project cannot exceed 75% of supported eligible non-capital costs and 50% of supported eligible capital costs.
- The applicant must have secured funding of at least 50% towards the balance of the project's eligible costs.
Financial assistance from government programs may have tax implications for a business. It is recommended that applicants obtain advice from a qualified tax professional.
Terms of repayment will be determined during the development of the contribution agreement and normally begin no later than one year following the completion of the project.
For non-commercial projects:
- Applicants are normally eligible to receive up to 75% of eligible and supported costs.
- For projects involving redistribution of funding to ultimate recipients (e.g. SMEs), the maximum disbursement of a contribution is capped at $25,000 per ultimate recipient. Ultimate recipients must provide a minimum 50% cash contribution.
- Total government funding (including federal, provincial and municipal) up to 100% is supported.
Other considerations
To be considered eligible, project benefits must accrue to Northern Ontario.
All eligible applicants must be legal entities capable of entering into legally binding agreements.
Completing an application does not guarantee funding approval. All applications will be assessed as they are received. This will include a review of the business case and financial projections, the applicant's past results, and the identification of any issues that may impact the project's success. Approval may also depend upon funding availability.
How to apply
Please call 1-877-333-6673 to discuss your proposal with a FedNor Officer in your area or begin your application process.
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