Thunder Bay is making significant strides in addressing its housing affordability challenges, with the City Council poised to approve key adjustments to its Affordable Rental Housing Funding Program. The initial intake of the programme has already demonstrated early success, supporting six eligible projects that are projected to deliver 168 affordable units and 42 market units, representing a combined estimated construction value of over $77 million. Due to strong uptake and alignment with the programme’s goals, Council previously approved a substantial increase in the 2024 funding allocation from $1,520,000 to $5,580,000, enabling all eligible projects to receive crucial support. This commitment has helped Not-for-Profit organisations transition their housing initiatives from vision to reality by bridging funding gaps.
These enhancements to Policy 02-06-01 stem from valuable feedback received from participating Not-for-Profit organisations and the Mayor’s Taskforce on Building More Homes Advisory Committee, aiming to bolster future operations and improve program efficacy. A significant recommended change is the revision of the ‘Affordable Unit’ definition, which will now utilise regional renter household income percentiles as the benchmark for affordability, moving away from the Canada Mortgage and Housing Corporation’s (CMHC) Average Market Rent (AMR). This revised approach is considered a more accurate indicator of true affordability and offers greater flexibility and variety in housing types. Additionally, the updated policy will incorporate core housing need into its evaluation criteria and prioritise projects that contribute to a reduction in operational carbon emissions, aligning with the City’s Net-Zero Strategy.
Looking ahead, the City remains committed to fostering solutions for housing challenges. A broader Affordable Housing Action Plan is scheduled for Q1 2026 as part of the City Manager’s Workplan, designed to assess comprehensive policy, funding, partnership, and legislative options for both home ownership and rental markets. The programme is integral to achieving Thunder Bay’s updated housing supply growth target of 1,755 permitted housing units by February 2027, which includes a specific target of 362 affordable units. This continuous effort aims to lay a strong foundation for sustained housing delivery within the city.
