Canada, Alberta announce $938-million partnership to build housing

Ontario Construction News staff writer

The governments of Canada and Alberta have signed an agreement that will make about $1 billion available for water and wastewater infrastructure projects aimed at supporting new housing across the province.

Under the partnership, Alberta municipalities will be able to access more than $510 million in federal funding over eight years through the Canada Housing Infrastructure Fund (CHIF). The funding will support water and wastewater projects that increase system capacity and reliability and enable housing development.

Alberta will contribute at least one-third of eligible project costs for projects led by municipal governments, unlocking up to an additional $428 million in provincial funding for qualifying work.

“Strong communities start with the infrastructure to support them,” Alberta Premier Danielle Smith said in a statement. By investing in the water and wastewater systems communities rely on, we’re doing what it takes to build more housing, attract new investment and keep pace with Alberta’s growth.”

Construction industry leaders welcomed the agreement, saying investment in enabling infrastructure will be critical as Alberta works to keep up with housing demand.

“When industry and governments align, Alberta moves fast,” said Scott Fash, chief executive officer of BILD Alberta Association. “Today’s commitment will deliver critical infrastructure that supports our builders, developers and municipalities in building the homes and neighbourhoods our growing province needs.”

Both governments say the partnership is intended to help accelerate housing construction while supporting economic development and ensuring communities have the infrastructure needed to accommodate continued growth.

The agreement comes as Alberta continues to experience rapid population growth. More than 600,000 people have moved to the province over the past five years, increasing demand for both market and affordable housing and placing additional pressure on municipal infrastructure and public services.

Funding is expected to help communities address infrastructure capacity constraints that can otherwise delay housing and neighbourhood development.

“Alberta has an ambitious plan to scale up homebuilding and our government is backing it. We’re partners in this mission, working in the true spirit of cooperative federalism,” said Prime Minister Mark Carney. “From transformative energy projects to the water infrastructure in your communities, we are building bigger, faster, and better because we’re building together.”

Under the agreement, Alberta will maintain responsibility for identifying and prioritizing projects submitted to the federal government through CHIF. The province says this approach will align federal investments with existing provincial water infrastructure programs while protecting provincial jurisdiction.

Cities, rural municipalities and Indigenous communities will be able to access the funding for projects that support housing growth and economic development. Twenty per cent of the funding will be allocated to projects in rural or Indigenous communities.

“Alberta’s Government worked to secure an agreement that aligns with existing water infrastructure programs and protects provincial jurisdiction,” said Devin Dreeshen, Minister of Transportation and Economic Corridors. “With provincial oversight of project selection, we will be able select projects that will meet regional needs and support growing Alberta communities.”

Money can be used for eligible public infrastructure projects involving water, wastewater, stormwater and solid-waste systems where the work enables new housing supply by increasing infrastructure capacity or reliability.

Eligible recipients include municipalities, public-sector entities, Indigenous communities and certain private-sector organizations working with public partners.

Transportation and Economic Corridors is developing Alberta’s first list of projects for submission to the federal government by Nov. 30.