This Week in Construction & Housing — Ottawa (#32, 2026)
Federal, Ontario commit $1B for non-development charge municipalities; 159-unit affordable homes launched in Ottawa; Build Communities Strong Fund supports Ontario, Nova Scotia projects; StatsCan reports drop in June construction investment; Industrial Product Price Index rises in July; federal s...
August 16, 2026 to August 22, 2026
This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news related to residential and commercial construction as well as infrastructure and government initiatives and programs concerning housing and housing affordability. Once a week, we break down the most important updates in this space in under five minutes.
📋 In This Week's Newsletter
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week
Federal Government News
Federal and Ontario Governments Announce $1 Billion for Non-Development Charge Municipalities to Expand Housing-Enabling Infrastructure
On August 16, the governments of Canada and Ontario confirmed a $1 billion investment to assist Ontario municipalities that do not levy development charges in building critical infrastructure. The Non-Development Charge Municipalities Stream, part of the broader $8.8 billion Canada-Ontario Partnership to Build program, is funded equally by Ontario’s Municipal Housing Infrastructure Program and the federal Build Communities Strong Fund, pending an agreement under the Fund. These funds are designated for building and renewing infrastructure such as roads, bridges, and water systems required to support new housing developments and maintain existing supply. The application window for eligible municipalities opens October 29, 2026, with further intake periods to be announced subsequently. The program also provides up to $200,000 in savings for new homebuyers in some regions, enabled by additional HST relief and the Development Charge Reduction Program. This measure comes in response to limited in-house revenue tools for non-development charge municipalities amid high construction costs and infrastructure backlogs.
Sources: www.canada.ca

Ottawa Backs Groundbreaking on 159 Affordable Rental Homes in Lowertown, Ottawa
On August 19, MP Mona Fortier and Ottawa Community Housing launched a 20-storey, 159-unit affordable housing development at 200 Beausoleil Drive in Ottawa, backed by up to $63 million in federal funding from Build Canada Homes and CMHC. The project, led by Laurin Construction with architectural design from Diamond Schmitt Architects and KWC Architects, will convert a parking structure into residential housing featuring 32 accessible units and integrating Passive House design, solar energy, and barrier-free access. Construction is scheduled to commence later in 2026 with completion by 2028. Identified as a priority under the Build Canada Homes partnership between the federal government and the City of Ottawa, the initiative focuses on accelerating mixed-income and affordable housing through support to housing providers, industry, and municipal stakeholders.
Sources: www.canada.ca
Build Communities Strong Fund Delivers $932 Million for Ontario Community Infrastructure Upgrades
The federal government will supply $932 million in 2026–2027 to the Association of Municipalities of Ontario, the City of Toronto, and Ontario’s Ministry of Transportation for broad-based community infrastructure upgrades under the Build Communities Strong Fund. The allocation is aimed at 19 project categories, supporting core elements such as public transit, wastewater upgrades, water systems, local roads, and bridges. For example, Belleville will direct $5.3 million toward a new pump station and wastewater plant expansion to unlock 9,000 residential units, while Mississauga and Toronto allocate funding to expand transit facilities and enable a transition to zero-emission public transit vehicles. The Ontario Ministry of Transportation will use its community stream allocations to strengthen travel routes in unincorporated areas. This arrangement fulfills federal commitments to support housing supply growth, resilient infrastructure, and improved accessibility for Ontario’s municipalities.
Sources: www.canada.ca
Investment in Edmundston, New Brunswick Water and Sewer Infrastructure Paves Way for 700 Housing Units
A combined federal, provincial, and municipal investment exceeding $2.4 million was unveiled on August 17 for water and sewer service expansion in Edmundston, New Brunswick, through the Canada Housing Infrastructure Fund. MP Guillaume Deschênes-Thériault, Minister Gilles LePage, and Mayor Eric Marquis detailed the extension of water, sanitary, and stormwater services to new development lots. The work is set to enable the construction of approximately 700 new housing units and includes upgrades such as a retention pond conversion and pipe improvements to manage increased stormwater. This investment supports the objectives of Build Canada Homes and complementary infrastructure programs aimed at advancing the housing supply and construction sector in the region.
Sources: www.canada.ca
Federal Government Launches Unsheltered Homelessness and Encampments Initiative for Ontario Municipalities
On August 17, the federal government announced up to $45.5 million of a $125 million national package is being made available for 10 municipalities across Ontario under the Unsheltered Homelessness and Encampments Initiative (UHEI). The initiative extends funding for an additional year (beyond the initial 2024-2026 period) to enhance local support systems, including outreach, shelters, and supportive housing solutions for populations who are unsheltered or at risk. The UHEI supplements existing programs such as Reaching Home and the Veteran Homelessness Program, responding to the challenge of housing instability and aiming to fund new shelter spaces, supportive units, and service enhancements.
Sources: www.canada.ca
Build Communities Strong Fund Supports Recreational Infrastructure Revitalization Projects in Dartmouth, Nova Scotia
On August 19, Minister Darren Fisher announced a federal investment of up to $1.2 million in Dartmouth, Nova Scotia, for retrofitting and expanding the Mic Mac Amateur Aquatic Club through the Build Communities Strong Fund. The project will upgrade windows, insulation, brickwork, and install solar panels, while putting in place accessible, climate-adaptive docks and new indoor and outdoor program spaces. Accessibility enhancements include new ramps, an accessible pathway, and upgraded washroom facilities. The funding also supports kitchen expansion and energy efficiency upgrades, contributing to improved infrastructure for underserved populations.
Sources: www.canada.ca
Durham Region Receives More Than $3.3 Million for Active Transportation Network Projects
The federal government committed over $3.3 million for projects expanding active transportation options in Durham Region, as announced August 21 by Jennifer McKelvie, Parliamentary Secretary to the Minister of Infrastructure. Funding is slated for a 1.5 km multi-use path in Ajax, trail upgrades, and a new pedestrian pathway in Oshawa, along with support for a 30-km regional active transportation corridor. These projects are intended to improve connectivity and safety for walking and cycling, as well as promote community recreation.
Sources: www.canada.ca
Government of Canada Provides $600,000 to Aliar Fabrication & Structures to Boost Manufacturing Productivity in Quebec
Canada Economic Development for Quebec Regions has granted a repayable $600,000 contribution to Aliar Fabrication & Structures in Saint-Ambroise, Quebec. Announced by MP Carlos Leitão on August 21, the funding will be directed to purchasing and installing new digital production equipment. Aliar Fabrication & Structures is engaged in steel and aluminum design and manufacturing for agriculture, rail, and construction applications, including building structures, conveyors, silos, and welded assemblies. The project is part of the Regional Economic Growth through Innovation program, which focuses on supporting small and medium-sized enterprises that are investing in technology upgrades to improve efficiency and competitiveness in the construction supply sector.
Sources: www.canada.ca
Statistics Canada: Building Construction Investment Falls Marginally in June 2026
Statistics Canada data released August 19 indicated a $109.7 million decrease (-0.5%) in the total value of building construction investment for June 2026, bringing the national total to $23.2 billion. The data serve as an indicator of construction sector trends and overall demand for construction labour, building materials, and related services.
Sources: www.statcan.gc.ca
Industrial Product Price Index Sees 0.6% Monthly Rise, Raw Materials Index Falls in July 2026
According to data published August 20, the Industrial Product Price Index increased by 0.6% month-over-month and 12.4% year-over-year in July. Meanwhile, the Raw Materials Price Index declined 2.2% since June but remained up 18.1% year-over-year. These figures are relevant for contracting firms, input suppliers, and others with forward purchase commitments for building materials.
Sources: www.statcan.gc.ca
New Housing Price Index for July 2026 Published
Statistics Canada released the July 2026 figures for the New Housing Price Index on August 20, providing industry stakeholders with detailed price trend data for the new homes market and supporting analysis pertaining to property development and project forecasting.
Sources: www.statcan.gc.ca
Provincial Government News
Ontario and Canada Commit $1 Billion for Non-Development Charge Municipalities
Ontario and Canada will allocate $1 billion to assist municipalities without development charges, supporting infrastructure essential for new housing projects. Funding applications open October 29, 2026.
Sources: news.ontario.ca
Ontario to Invest Over $9.8 Million in Worker Training Across Sectors Including Construction and Skilled Trades
The Ontario government is investing more than $9.8 million in training through the Skills Development Fund, funding projects that target new entrants to construction, skilled trades, manufacturing, and related fields.
Sources: news.ontario.ca
BC's Kootenays to Launch Tuition-Free Industry Carpentry Training for 16 Participants
A $365,000 federal-provincial initiative will provide industry-accredited carpentry training and paid placements for up to 16 participants in the Kootenays starting August 31, 2026.
Sources: news.gov.bc.ca
Ontario Announces $9.8 Million Millwright Training Centre for Port Hope
Ontario will invest $9.8 million in a new millwright training centre in Port Hope, enabling hands-on training for more than 2,500 apprentices and journeypersons over the next five years.
Sources: news.ontario.ca
Alberta Expands RAMP Grants to $12,000 Per Year for Home Accessibility Modifications
Alberta increased the maximum grant under the Residential Access Modification Program to $12,000 per person annually, with funding also available for caregivers’ homes, in an effort to improve accessibility for low-income residents.
Sources: www.alberta.ca

What We're Reading This Week
- Ottawa and Ontario announce $1 billion for infrastructure to support housing: Funding targeted at municipalities not levying development charges to unlock new housing supply.
- Annual pace of housing starts slowed 5% in July, CMHC says: Housing starts declined 5% year-over-year according to the July 2026 data.
- Province says home construction in Saskatchewan remains strong in 2026: Saskatchewan government maintains home construction activity is robust this year.
- Unpacking the Carney government’s $2.7-billion housing pledge: A breakdown of recent federal housing funding initiatives.
- Debate: Ont. leaders' on housing affordability: Ontario leaders discuss affordability measures amid rising housing costs.
- The accidental landlords, the Home of the Week and more top real estate stories: Current coverage of real estate and rental trends.
- BILD: Ensuring a proper approval pipeline for new developments: Builders and developers discuss the need for timely municipal development approvals.
- OPINION: Municipal election candidates need to ensure approval pipeline for new developments is part of housing strategy: Commentary on the future of municipal approval processes in housing strategies.
- Massachusetts House and Senate move toward housing goals: Legislative action in the US on housing supply targets.
- Electra Advances Concrete, Structural Steel and Equipment Installation at North American Cobalt Sulfate Refinery: Updates on a major construction and equipment project with implications for the industrial sector.