By Heather Kingdon, Communications Manager of Foresight Canada
When it comes to expanding housing development across Canada, the country faces significant challenges. Canada Mortgage and Housing Corp. (CMHC) estimates an additional 3.5 million housing units are needed by 2030 to support the nation’s population. Adding the need to implement sustainable building practices, Canada’s housing market is ripe for innovation.
Foresight Canada recently partnered with CMHC on the Housing Supply Challenge to identify sustainable, nation-wide solutions to address Canada’s housing issues. Innovators across the country have responded enthusiastically, showcasing groundbreaking solutions designed to enable sustainable and scalable housing growth.
Rural Impact Canada
One standout participant, Rural Impact Canada, is revolutionizing how small and rural municipalities approach affordable housing development. By leveraging its Municipal Services Corporations (MSCs) program, the organization empowers small and rural communities to build homes more efficiently and sustainably, paving the way for long-term development. Rural Impact Canada was born out of the housing supply challenge with the goal of reducing and eliminating the barriers that small and rural municipalities face when building infrastructure and supporting dense and diverse development. The MSC Program, the first of its kind in the housing and development industry, provides a step-by-step guide and resources for municipalities to create their own MSC faster and for less, helping build an environment that is able to support development.
MSCs are municipality-owned entities that consolidate resources and expertise to address local needs efficiently. These highly adaptable corporations give smaller municipalities tools to manage growth and collaborate with developers and innovators on housing and infrastructure solutions. Whereas smaller municipalities often lack internal resources, such as robust legal departments and must frequently outsource to for-profit organizations, MSCs have a dedicated board of directors, often saving municipalities significant time and money. For-profit organizations may not prioritize a municipality’s needs – unlike an MSC, which exists solely to serve the community.
Unlocking capital
MSCs can also help address key issues such as unlocking capital for infrastructure investments and development, and taking on the management and operations of alternative infrastructure solutions. Rural and small municipalities are inherently disadvantaged in obtaining capital due to their lower tax revenue and debt limitations. The MSC approach offers smaller municipalities a tool to manage growth strategically, reducing the financial strain and inefficiencies of traditional municipal approaches.
The MSC Program takes municipalities through the steps required to create or join an MSC (along with other program outcomes), focusing on creating solutions to Canada’s housing challenges at the local level. The program aims to reduce the complexities of creating an MSC and introduces standardization and resources that simplify the process while addressing each municipality’s unique needs. The guide significantly reduces the time and cost of the process; what typically took three to seven years can now potentially be completed in six to 12 months, avoiding the costly trial-and-error process.
The organization’s MSC Program, along with its Municipal Housing Development (MHD) Program and the Decentralized Housing Development (DHD) Program, accelerate housing productivity and pave the way for diverse, sustainable housing options, including seniors’ housing, transitional units and missing middle developments which, are low in supply in rural and small municipalities. By integrating cleantech innovations into water and wastewater management, which ripples into innovative heating and construction materials, Rural Impact Canada’s approach not only expands housing access but also promotes resilience and sustainability in the face of climate challenges.
Fundamental needs
“Building homes goes beyond just construction – it requires addressing fundamental needs like access to water and wastewater systems, which are key to tackling housing challenges across Canada,” says Helen Platis, chair of Rural Impact Canada advisory board and Foresight Canada executive in residence. “At Rural Impact, we collaborate with stakeholders nationwide to help drive housing growth and create lasting change in people’s lives. As chair of the advisory board, I’m proud to be part of an organization that’s making a real difference.”
Rural Impact Canada was officially launched in September 2024 and is already working with six municipalities with the MSC and MHD Programs and four housing developers taking part in the DHD Program. By 2025, the organization anticipates influencing more than 200 net-new housing units submitted for building permits, which would not have been possible otherwise, and expects to see more than 10,000 housing permits submitted by 2028.
