Housing-Enabling Infrastructure

Canadian municipalities are facing a shortage of housing, especially affordable housing. To address housing needs, all levels of government are responsible for making informed decisions about infrastructure and housing investments. 

Municipalities are improving their capacity to increase the supply of housing by investing in housing-enabling infrastructure and capacity-building initiatives. Visit the Housing Needs Assessment Map to access demographic and growth data and housing needs assessments (HNAs) that have been completed by Ontario municipalities. 

Under the Municipal Funding Agreement (MFA), the Government of Canada encourages all municipalities - and requires single or lower-tier municipalities with a population of 30,000 or more - to develop a housing needs assessment (HNA) in accordance with the federal template. This is a requirement for all federal infrastructure funding programs.

Under section 8.3 of the MFA, municipalities are expected to prioritize projects that support the growth of the housing supply. A HNA, where applicable, is to be used to prioritize, where possible, in infrastructure or capacity-building investments that support increased housing supply where it makes sense to do so.  

The MFA also indicates new housing outcome indicators for reporting. Once construction of an eligible project has ended, housing outcomes resulting from the project must be reported; specifically, the number of housing units enabled or preserved, and the number of affordable housing units enabled or preserved. AMO guidance supports accurate reporting on housing enabling and preserving projects that indicates the number of units that have been enabled and/or provides a qualitative description linking the investment to housing.

Long-Term use of Housing Needs Assessments

Municipalities are looking ahead to plan for housing needs today. A research report on the development of municipal housing needs assessments and their use in long-term planning was completed in the Fall of 2025. The study examines how municipalities plan, fund, and deliver housing-enabling infrastructure and identifies the challenges preventing housing development. The findings of the report are informed by the results of several interviews with municipalities across Ontario. The final report also includes an analysis of how HNAs may be integrated into long-term planning and feedback on the federal template.

Affordable housing: Affordable housing is defined by the federal government to mean a dwelling unit where the cost of shelter, including rent and utilities, is a maximum of 30% of before-tax household income. The household income is defined as 80% or less of the Area Median Household Income (AMHI) for the metropolitan area or rural region of the Ultimate Recipient.

Core housing need: A household is considered to be in core housing need if it meets two criteria: 1. A household is below one or more of the national adequacy, suitability and affordability standards; and, 2. The household would have to spend 30% or more of its before-tax household income to access local housing that meets all three standards. Housing is considered to be suitable when there are enough bedrooms for the size and make-up of the household. Housing is considered to be adequate when it is not in need of major repairs.

Housing Needs Assessment (HNA): An HNA is a report informed by data and research that describes the current and future housing needs of a community. The Government of Canada has developed a template that includes both quantitative elements such as economic data, population, and household forecasts; and qualitative elements such as policy analysis and long-term planning priorities. 

Housing-enabling infrastructure: Housing-enabling infrastructure is infrastructure that increases the community’s capacity to build new housing units. It may include investments in roads and bridges, water/wastewater distribution and treatment, stormwater assets, power distribution or any other assets that support the development of housing. Capacity building projects can include updates to the official plan, zoning by laws, feasibility studies, housing needs assessment, and asset management planning that integrates growth among others.

Housing-preserving infrastructure: Housing-preserving infrastructure is infrastructure that increases the community’s capacity to conserve existing housing units. It may include investments in roads and bridges, water/wastewater distribution and treatment, stormwater assets, power distribution or any other assets (e.g. culture, social services, and recreation). Capacity building projects can include updates to the official plan, zoning by laws, feasibility studies, housing needs assessment, and asset management planning that integrates growth among others.

Units enabled: Units enabled is a measure of increased capacity for potential housing development as a result of the infrastructure investment made and, in some cases, where CCBF funding contributed directly to housing development (e.g., building social housing as part of brownfield remediation category, may include new units directly supported by CCBF funding).