Financing for Accessible Housing Options for Low-Income Households
The Quebec government has introduced a new approach to its Affordable Housing Program, focusing on intermediate affordable housing. This change, led by the Société d'habitation du Québec (SHQ), could potentially create up to 20% more affordable housing units over a decade.
The addition of intermediate affordable housing to the program is expected to significantly reduce development costs for affordable housing projects. This new approach, whose rent is lower than the market but higher than social housing, is intended to decrease the cost of construction without reducing the offer of affordability.
The SHQ's innovative financing approach is making a significant impact on affordable housing development in Quebec. The organisation has started acting as a financial lender for affordable housing projects since June, and it has partnered with the Desjardins Group and other philanthropic foundations to launch the $50 million Amplifier fund.
This fund provides patient capital financing to non-profit organisations for the construction or acquisition of affordable, sustainable housing. The Amplifier fund emphasises environmental responsibility and social innovation alongside affordability, creating a model that combines affordability, sustainability, and social impact.
The SHQ's approach also includes the use of innovative housing solutions such as modular units to address urgent housing needs, especially for vulnerable populations like people experiencing homelessness. This quick, cost-effective transitional housing complements the financing approach by enabling rapid deployment and meeting immediate needs while longer-term projects are developed.
The new financing approach by the SHQ impacts Quebec's affordable housing development in several ways:
- Mobilising $50 million in patient capital through the Amplifier fund to support sustainable affordable housing projects managed by non-profits.
- Emphasising environmental responsibility and social innovation alongside affordability.
- Acting as a catalyst for broader collaboration between government, philanthropic organisations, and financial institutions.
- Adding rapid transitional housing tools like modular units to its housing solutions portfolio for vulnerable groups.
- Supporting projects that align with provincial goals for inclusive, energy-efficient housing development.
This innovative, multi-sector fund approach indicates a strategic shift towards integrated financing that balances social, environmental, and financial outcomes in Quebec's affordable housing sector.
While the new approach is welcomed by many, including the Alliance of Affordable Housing Corporations of the Quebec Territory (ACHAT) and Front d'action populaire en réaménagement urbain (FRAPRU), there are concerns that it could put pressure on increasing rent prices and adversely affect immediate affordability needs.
Minister of Housing France-Elaine Duranceau has stated that promoters will be able to benefit from a combination of public loans and grants for affordable housing projects. The minister indicated that these loans may be patient loans or low-interest loans.
Currently, there are over 10,000 affordable housing units under construction in Quebec, an unprecedented number according to the Quebec government. The government anticipates that this change will allow for more affordable housing units to be built in the long term.
This new approach comes as France-Elaine Duranceau faces criticism for statements perceived as "disconnected" from the reality of tenants or low-income individuals. Rumours of a ministerial reshuffle have surfaced at the start of the week. Despite this, Duranceau believes she can help more Quebecers in the long term with her economic perspective on the housing crisis, while also acknowledging the need to continue supporting the most vulnerable.
[1] Société d'habitation du Québec (SHQ) press release, July 2025. [2] Desjardins Group press release, July 2025. [3] Front d'action populaire en réaménagement urbain (FRAPRU) press release, July 2025.
The innovative financing approach by the Société d'habitation du Québec (SHQ) is expected to contribute to reduced costs for affordable housing projects in the business sector. This approach, which includes patient capital financing from the Amplifier fund, could potentially lead to the construction of more affordable housing units in Quebec's finance industry.
The partnership between the SHQ, Desjardins Group, and philanthropic foundations in the Amplifier fund emphasizes environmental responsibility, social innovation, and sustainability, in addition to affordability, demonstrating a strategic focus on integrated financing in Quebec's business and finance sector.
