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Ottawa wants to get banks, pension funds involved in affordable housing: minister

Ottawa's Build Canada Homes asked Canadian banks and pension funds to finance affordable housing, as urged by Gregor Robertson, Minister of Housing and Infrastructure.
Using federal capital and risk-sharing, Ottawa aims to de-risk affordable housing and make it a stable, long-term investment for Canadian capital, with Build Canada Homes launched last September with $13 billion initial capitalization.
So far, the agency reports Build Canada Homes has received 450 applications, including the 540-unit Arbo development, Toronto, which will be at least 40 per cent affordable.
Gregor Robertson says the pitch is to attract capital by reducing risk, but observers warn banks and pension funds must maximize returns and very low-income housing yields little profit.
To meet targets, Robertson acknowledged that meeting Liberal homebuilding targets will still require the private sector to lead the bulk of construction and warned that slow government action risks projects only ramping up when the market heats up.

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