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Canadian property developers eligible for CA$20,000 per unit under new modular homes grants.
To address the chronic housing shortage in Canada, the City of Fredericton, located in eastern Canada, is offering grants to property developers who choose to build new modular homes. (Main pic: Canadian modular home builder, Atlas Structural Systems, lifting a floor cassette into a modular home.)
Both for-profit and non-profit property developers are eligible for up to a CA$20,000 grant per modular home under the city’s new manufactured housing grant scheme.
As first reported by CBC, the grant aims to encourage property developers to opt for modular homes, which, although potentially more expensive, can be constructed up to 40 per cent faster than traditional methods, according to Janet Flowers, the city’s affordable housing development coordinator. Flowers stated that the grant would also promote a construction method that results in fewer greenhouse gas emissions and leverages local expertise.
“We have multiple manufactured housing providers in the province, so we have access to some excellent firms to do this kind of work,” Flowers said.
The modular housing grant is the fifth grant announced by the city, all aimed at accelerating the development of new housing units in Fredericton. These grants are funded by the city’s CA$10-million Housing Accelerator Fund, part of a CA$4.4 billion national program designed to help Canadian municipalities address the housing crisis.
One of the city’s previously announced grants aims to offset the capital construction costs for new rental units for both for-profit and non-profit developers. Flowers noted that a non-profit developer could receive up to CA$40,000 under that program, and if they also qualify for the modular homes grant, they could have an additional CA$20,000 of their costs subsidised by the city.
Interestingly, a grant is also available to homeowners interested in building an accessory dwelling unit (granny flat) for rental purposes.
Fredericton Mayor Kate Rogers expressed optimism about the role of modular homes in the city’s housing strategy. “We do hear some developers say there’s a challenge in the pipeline of getting tradespeople and materials, and with modular housing, you can work through all of that quickly by using a modular housing development,” Rogers said. “And we are fortunate that we have some really great businesses working within the province, so we see that as a real opportunity … and we want to be taking advantage of that.”
Approximately CA$5.5 million of the Housing Accelerator Fund will be allocated to these grants, with the aim of creating 287 modular housing units by the end of 2026.
Read about Canada’s commitment to modular construction HERE
