Through its newly established agency, Build Canada Homes, the federal government announced it has partnered with the City of Ottawa to deliver up to 3,000 mixed-income and affordable housing units beginning in 2026. The joint investment of $400 million will fast-track 2,000 housing units on federal lands, with the City reducing or waiving development charges, permit fees, and property taxes. It will also finance 1,000 additional affordable units from Ottawa’s existing housing projects and streamline permitting and development timelines to accelerate construction.
“Canada’s new government is delivering a nation-building agenda with local partnerships,” Prime Minister Carney said. “Our new agreements with the City of Ottawa will build more homes, protect our communities, and catalyse new opportunities for collaboration in defence and technology. We’re building Ottawa strong and building Canada strong.”
All projects will operate under the government’s new Buy Canadian Policy, prioritizing domestic materials such as Canadian lumber, to strengthen supply chains and create local jobs.
“Today’s historic housing agreement represents hundreds of millions of investment in our city to build a total of 3,000 affordable homes in Ottawa,” added Mark Sutcliffe, Mayor of Ottawa. “We are working together to build more affordable homes, support those struggling with substance use, strengthen our local economy, and showcase our city on the world stage. Thank you to Prime Minister Carney and our local MPs for their support and collaboration on these important initiatives that will directly benefit the lives of our residents. We will keep working closely with our federal partners to make Ottawa safer, more reliable, and more affordable for everyone.”
While housing dominated the agenda, the federal government also unveiled a $1.2 million pilot project to confront Ottawa’s drug crisis. The initiative will support city-led programs and establish a coordinated framework with the Canadian Centre on Substance Use and Addiction, aiming to reduce crime, deter substance use, and strengthen collaboration with health services.
Prime Minister Carney further highlighted Ottawa’s role as a hub for defence innovation, announcing plans to leverage the city’s industry as part of a $9 billion national investment in the Canadian Armed Forces this year. The funding will include pay raises for service members and new international agreements to bolster Canada’s security.
Finally, Carney confirmed Canada’s bid to host the Sommet de la Francophonie in 2028 in the National Capital Region. Officials say the summit would reinforce Canada’s bilingual identity while deepening economic ties with Francophonie nations, which together represent one-fifth of the global economy.
