Funding Tools for Affordable & Community Housing in BC: What Developers Should Know

Written By Dorien van Tol

Delivering affordable and community housing in British Columbia has never been more critical or more complex. Rising construction costs, shifting policy frameworks, and growing demand make project feasibility challenging. Fortunately, BC developers have access to a wide range of funding programs, grants, and financing tools that can transform early concepts into viable projects.

This article breaks down the most important provincial, federal, and municipal funding sources developers should know when planning affordable or community housing in BC.

1. BC Housing Funding Programs

Community Housing Fund (CHF)

The Community Housing Fund is one of the province’s most significant mechanisms for creating new affordable rental units. It offers:

  • Capital grants

  • Low-cost construction financing

  • Long-term operating support (for non-profit and co-op operators)

Ideal for:
Non-profit partnerships, mixed-income housing, and developments aligned with local housing needs.

Supportive Housing Fund

Supports projects that integrate housing with wrap-around services. Funding includes both capital contributions and operational subsidies.

Ideal for:
Non-profits partnering with developers to deliver supportive or transitional housing.

Rental Supply & Low-Interest Financing

Some BC Housing programs and municipal partnerships offer reduced-rate financing to support purpose-built rental projects that include affordable units.

2. CMHC Federal Programs Developers Should Understand

National Housing Co-Investment Fund (NHCF)

One of the strongest tools in Canada for achieving deep affordability. It provides:

  • Forgivable loans

  • Low-interest construction loans

  • Incentives for accessibility and energy performance

Competitive factors include affordability targets, environmental performance, and alignment with community needs.

Rental Construction Financing Initiative (RCFI)

Provides long-term, low-cost loans for new rental housing with modest-income targeting.

Best suited for:
Developers pursuing mid-market rents or mixed-income projects.

Rapid Housing Initiative (RHI)

Offers fully forgivable capital grants for projects that can be delivered quickly, such as modular housing or adaptive reuse.

Seed Funding

Early-stage money for feasibility, environmental studies, and preliminary design. Critical for de-risking sites before major investment.

3. Municipal Incentives Across BC

Many BC municipalities support affordable housing through local incentives, such as:

Development Cost Charge (DCC) Waivers

Cities like Vancouver, Kelowna, and Victoria offer partial or full DCC exemptions for non-profit and affordable rental developments.

Property Tax Exemptions

10-year tax holidays may be available for purpose-built affordable rental housing.

Fast-Track Permitting

Some cities prioritize affordable and non-profit projects in the approvals process.

These incentives can materially shift the feasibility of a project, sometimes creating millions in savings.

4. Additional Funding & Alternative Partnerships

FCM Green Municipal Fund

Provides financing for sustainable, energy-efficient, affordable housing projects.

Indigenous Housing Programs

Multiple streams exist for Indigenous-led housing on and off reserve, often in partnership with developers.

Community Land Trusts

Land trusts can contribute land at low or no cost in exchange for long-term affordability commitments.

Layering Funding Is Key

Most successful affordable housing projects in BC rely on stacked funding, combining:

  • BC Housing grants

  • CMHC financing

  • Municipal incentives

  • Non-profit or Indigenous partnerships

By aligning with policy goals, demonstrating deep affordability, and optimizing funding layers, developers can significantly improve financial feasibility and community impact.

We can help!

Looking for financial modelling or feasibility support for your community or affordable housing project? Our development management team can help evaluate incentives, identify funding pathways, and streamline early approvals. 

Dorien van Tol