Halifax is introducing a new affordable housing plan, aiming to continue supporting non-profit organizations. However, officials acknowledge that this strategy alone may not fully address the city’s ongoing high housing costs. The proposal, presented to the community planning and economic development council committee, suggests maintaining existing affordable housing grant programs, waiving permit fees, and providing tax relief for non-profit housing groups as federal funding ends.
To implement the plan, two new staff positions will be included in the upcoming 2027-28 city budget. This move is estimated to cost around $242,950 annually over the next ten years. Councilor Becky Kent emphasized the importance of supporting independent agencies already contributing to affordable housing initiatives.
From 2021 to December 2025, existing municipal programs and federal funds have helped create 1,400 units of non-market or deeply affordable housing. This new strategy marks the final phase of Halifax’s commitments under the Housing Accelerator Fund, which secured $80 million in federal funding since 2023 for various housing projects.
Aaron Murnaghan, overseeing the HAF program, informed councilors that Halifax is on track to surpass its goal of 2,600 additional housing starts by October, totaling over 15,460 units within three years, including more than 333 affordable units. However, Murnaghan highlighted delays in project completions due to construction costs, financing challenges, material shortages, labor issues, and geographical constraints.
Despite these efforts, some councilors expressed disappointment that the strategy lacked tools to address overall market affordability for moderate-income individuals facing escalating rents and property taxes. Murnaghan attributed the persistent housing challenges to population growth and post-pandemic industry recovery hurdles.
The city has incentivized wooden construction for faster and cost-effective projects and introduced zoning changes through the HAF to facilitate the creation of thousands of new housing units. While Halifax can stimulate construction, Murnaghan stressed that the private sector and government entities play critical roles in expanding the housing supply.
The revised strategy will continue advocating for provincial cooperation to implement additional measures, including a vacant land tax, waiver of development charges for affordable housing, and adjustments to the deed transfer tax. Long-term plans involve exploring the integration of affordable housing within new or renovated municipal facilities.
The report also explored alternative models, such as establishing a municipal housing corporation or formal partnerships with non-profit organizations, although these options were deemed costlier and may necessitate legislative adjustments in the future. The finalized strategy will be subject to approval by the regional council in the upcoming period.
