Halifax Introduces New Affordable Housing Strategy to Address High Housing Prices
Halifax has unveiled a new plan aimed at bolstering the non-profit sector’s efforts to provide affordable housing. However, city officials acknowledge that this strategy may not completely solve the ongoing challenge of steep housing costs in the area.
The proposed strategy, presented to the Community Planning and Economic Development council committee, includes initiatives such as retaining the city’s current affordable housing grant programs, exempting permit fees, and offering tax relief to non-profit housing organizations once federal funding for staffing support expires.
To implement these measures, the city would need to create two additional staff positions, with an estimated annual cost of around $242,950 for the next ten years. Councilor Becky Kent emphasized the importance of supporting independent agencies that are already contributing to affordable housing solutions.
From 2021 to December 2025, existing municipal programs and federal funds from the Rapid Housing Initiative (RHI) have facilitated the development 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 has received $80 million in federal funding since 2023 to enhance housing supply initiatives.
Aaron Murnaghan, overseeing the HAF program, informed council members that Halifax is on track to surpass its goal of 2,600 additional housing starts above the norm by October, resulting in over 15,460 units over three years, including more than 333 affordable units. However, Murnaghan noted that construction completions are lagging due to various factors such as construction costs, financing challenges, material shortages, labor issues, and the unique geography of HRM.
While some councilors expressed disappointment that the new strategy may not significantly impact market affordability for moderate and middle-income individuals facing rising rents and property taxes, Murnaghan highlighted ongoing efforts to promote wooden construction for faster and cost-effective smaller projects and zoning changes that have enabled the creation of hundreds of thousands of new units through the HAF.
Murnaghan stressed that while the municipality can facilitate construction, the private sector, along with provincial and federal governments, play crucial roles in expanding housing supply. He acknowledged that it may take several years for supply to meet demand and affordability to stabilize amidst the current affordability crisis.
The new strategy also includes advocating for provincial approval to implement measures like a vacant land tax, waiving Halifax Water development charges for affordable housing, and adjusting the deed transfer tax. Additionally, long-term plans involve considering the integration of affordable housing within new or renovated municipal facilities.
Although the final approval of the strategy is pending at the regional council, city staff are exploring alternative models, such as establishing a municipal housing corporation or formal partnerships with non-profit organizations, which could be more costly but remain viable options for future consideration.