A new plan has been put forth in Halifax to enhance affordable housing by continuing to aid non-profit organizations, although it is acknowledged that it does not fully address the city’s high housing costs issue. The proposal was presented to the community planning and economic development council committee recently.
The strategy involves maintaining the current affordable housing grant programs, exempting permit fees, and providing tax relief for non-profit housing organizations once federal funding for staff support expires. The plan includes the addition of two new staff positions, anticipated to be included in the upcoming 2027-28 city budget, with an estimated annual cost of approximately $242,950 each over the next decade.
Coun. Becky Kent emphasized the importance of independent agencies already creating housing spaces with support. The existing municipal programs, along with federal funds through the Rapid Housing Initiative (RHI) from 2021 to December 2025, resulted in the establishment of 1,400 non-market or deeply affordable housing units.
The new strategy is the final component of Halifax’s obligations under the Housing Accelerator Fund (HAF), which secured $80 million in federal funding since 2023 for various initiatives to boost housing supply. Aaron Murnaghan, overseeing the HAF program, indicated that Halifax is on track to exceed its target of 2,600 additional housing starts by October, totaling over 15,460 units in three years, including more than 333 affordable units.
Despite progress, Murnaghan noted challenges in construction costs and completion delays, mainly due to construction expenses, financing issues, material shortages, labor challenges, and the region’s unique geography. He highlighted the extended timeline and costs associated with developing large projects in rocky terrains.
While the city has taken steps to promote faster and cost-effective wooden construction for smaller projects, Murnaghan stressed that the private sector and federal and provincial governments play significant roles in housing supply. The new strategy aims to influence the province to implement additional changes like establishing a vacant land tax and adjusting development charges to further enhance affordability.
The staff will explore long-term options such as incorporating affordable housing within new or renovated municipal facilities and consider creating a municipal housing corporation or partnering with non-profit groups, although these options may require legislative changes and higher costs. The strategy is pending final approval by the regional council.
High housing costs persist across Canada due to population growth and industry challenges post-COVID-19. Murnaghan emphasized that although it may take years for supply to meet demand and affordability to stabilize, efforts are ongoing to address the affordability crisis.