Facilitate the conversion of existing structures into affordable housing units. • YouBetcha

Current Status

Status: In Progress

The federal government has funded and supported specific projects converting existing buildings into affordable housing, demonstrating tangible steps toward facilitating such conversions.

Background

Canada's housing crisis has intensified over the past decade, with skyrocketing rents and home prices leaving millions struggling to find affordable places to live, particularly in urban centers where demand far outstrips supply. In response, the Liberal government under Prime Minister Justin Trudeau pledged to address this by facilitating the conversion of existing structures—such as old hotels, office buildings, and other underused properties—into affordable housing units, aiming to boost supply without the time and cost of entirely new construction. Fulfilling this would require federal funding, policy incentives, and partnerships with provinces, municipalities, and non-profits to repurpose buildings efficiently while ensuring units remain affordable for low- and moderate-income Canadians. This approach aligns with broader National Housing Strategy goals, launched in 2017, to create and repair hundreds of thousands of units nationwide [1]. Experts have long argued that conversions could unlock significant housing potential in cities facing vacancy in commercial spaces post-pandemic.

Evidence

The current Liberal government, sworn in after the 2021 election, has pursued housing initiatives under the National Housing Strategy, committing over $36 billion since 2017 to support affordable housing creation and repairs, including conversions, though actions by previous administrations laid some groundwork [1]. On August 30, 2022, Prime Minister Justin Trudeau announced over $2 billion in investments to create nearly 17,000 homes, including extensions to the Rapid Housing Initiative aimed at quickly building or converting units for vulnerable populations [2]. This funding supported projects like the conversion of Toronto's former Bond Hotel at 65 Dundas Street East, where the federal government provided over $123 million through the first and second rounds of the Rapid Housing Initiative to renovate the building into 280 affordable homes, with the first phase completing in spring 2024 and 92 residents moving in by November 12, 2024 [3].

Building on this, the government introduced Bill C-56, the Affordable Housing and Groceries Act, on September 21, 2023, which included amendments to the Excise Tax Act for a temporary enhancement to the GST New Residential Rental Property Rebate targeting new purpose-built rental housing, potentially aiding conversions by reducing costs for developers [5]. The bill received royal assent on December 15, 2023, enacting these changes [6]. By February 21, 2025, further investments were announced, including $675.6 million for 5,099 homes in British Columbia through various National Housing Strategy programs, some of which involved repairs and adaptations of existing structures [4]. These efforts tie into broader legislative frameworks like the National Housing Act, which promotes housing construction, repair, and modernization, and has been referenced in funding for accessible and community housing [7]. The Affordable Housing and Groceries Act itself formalized rebate enhancements to encourage rental housing development, including potential conversions [8]. As of early 2026, these initiatives have resulted in documented progress, such as the Toronto project, but conversions remain part of an ongoing national push without comprehensive nationwide completion.

Assessment

Federal actions since 2022, including substantial funding for projects like the Toronto Bond Hotel conversion, show the government actively facilitating the repurposing of existing structures into affordable housing. By channeling millions through the Rapid Housing Initiative and enacting tax rebates via the Affordable Housing and Groceries Act, Ottawa has enabled tangible outcomes, with hundreds of units already occupied and more in development across provinces. These steps provide a credible path forward, partnering with local governments to address supply shortages efficiently.

Yet the scale of Canada's housing needs means this facilitation is far from complete, with conversions representing just one piece of the broader strategy. Investments in British Columbia and elsewhere build momentum, but sustained effort will be required to meet demand fully. For now, these concrete projects underscore a commitment that is advancing, even as affordability challenges persist nationwide.

The government's approach leverages existing programs under the National Housing Strategy, ensuring conversions contribute to long-term goals without relying solely on new builds. This progress positions the promise as underway, with verifiable results in key cities, though full nationwide impact depends on continued implementation.

Current Status

Background

Evidence

Assessment

Sources