Hello! I'm Erica, a research analyst at Helio Urban Development. In my role, I work with organizations tackling Nova Scotia's housing challenges, and I've seen firsthand how non-profits and housing co-ops in HRM (Halifax Regional Municipality) can be powerful drivers of affordable housing. However, building affordable homes in HRM can be daunting for non-profits – tight budgets, complex approvals, and limited resources often stand in the way. That's why I've created this friendly, practical guide.
In this post, we'll walk through key incentives and fast-track processes available to help build affordable housing in HRM. From provincial forgivable loans to HRM's fee waivers and expedited approvals, we'll cover how you can leverage these tools. By the end, you should have a clearer roadmap for non-profit housing approvals in Nova Scotia, and how to get shovels in the ground faster (and on budget!). Let's dive in.
Funding is the biggest hurdle for any affordable housing project. Luckily, both the Nova Scotia government and the federal government (via CMHC) offer programs to ease the financial burden. Here's an overview of the major incentives non-profits can tap into:
The Province of Nova Scotia offers forgivable loans through its Affordable Housing Development Program. This program provides capital funding (which can turn into a grant if conditions are met) to help build new affordable rental units or convert buildings into housing. Essentially, if your non-profit or co-op is creating housing that will rent below market rates to low- or moderate-income households, you could qualify. Applications are open year-round and both private and community housing developers (like co-ops and non-profits) are eligible.
How much can you get? For larger projects, the program can fund up to 50% of the units in your development, and if your project is small (fewer than 10 units), it can fund up to 100% of the units. This is huge – it means a small co-op building, say, an 8-unit apartment could potentially have all 8 units' construction costs partly covered by a forgivable loan.
The actual loan amount depends on things like how long you guarantee affordability (minimum 15 years), how far below market your rents will be (e.g. 20% below market or more), and whether your project has other social benefits (accessibility, energy efficiency, etc.). If you keep the rents affordable for the agreed period (15+ years typically), the loan may be forgiven, turning into a grant – meaning you don't have to pay it back. This reduces your long-term debt and keeps your operating costs low.
Imagine your co-op plans a 6-unit townhouse project in Dartmouth. If all 6 units will be rented at least 20% below the area's average market rent, you could apply to the Affordable Housing Development Program. Because it's under 10 units, you might get forgivable loans for all 6 units. If the average build cost is, say, $200,000 per unit, and you qualify for $100,000 per unit as a forgivable loan, that's $600,000 you don't need to fundraise or borrow – and if you meet the affordability terms, you won't repay that $600k. That could cover a significant chunk of construction, making your project viable.
Canada Mortgage and Housing Corporation (CMHC) administers several federal funding streams under the National Housing Strategy. These can complement provincial programs and further reduce the cost of your project. Key CMHC programs include:
| Program | Description | Benefits |
|---|---|---|
| Affordable Housing Fund (formerly National Housing Co-Investment Fund) |
Provides low-interest loans and capital contributions (which can be forgivable) to affordable housing projects. | CMHC can loan you funds at low rates and/or give a partial grant if your project hits certain targets (energy efficient design, accessible units, deep affordability, etc.) |
| CMHC Seed Funding | Funding for early project-development costs like architectural drawings, engineering studies, or navigating approvals. | Get up to $350,000 in interest-free loans and up to $150,000 as a non-repayable contribution (grant). |
| Rapid Housing Initiative (RHI) | Federal program aimed at creating new affordable housing units very quickly (often within 12-18 months). | Usually funds 100% of projects that use modular housing or conversions, focused on those in severe need (homeless or at risk). |
Other Federal Programs include the Rental Construction Financing Initiative (RCFi) – a low-cost loan for rental housing (not specifically affordable, but with incentives if you include affordable units), and specialized funds like one for Black-led housing organizations (which can fund 100% of costs for projects serving Black households), and the Green Municipal Fund's Sustainable Affordable Housing grants for energy-efficient builds. Depending on your project's nature, these could be worth exploring.
Leveraging both provincial and federal: The best strategy is to stack funding sources. Nova Scotia's Affordable Housing Development Program is explicitly designed to work with CMHC programs – "You can use this funding in combination with CMHC programs like the National Housing Co-Investment Fund," the province notes. Most non-profit projects mix a provincial loan, a CMHC contribution, and their own equity or donations. The result can be a very low mortgage or none at all, so rents can stay truly affordable. It takes effort to apply to multiple programs, but the payoff is huge.
Capital funding is vital, but what about making the rents affordable for tenants year after year? This is where rent supplements (rental assistance) come in. Nova Scotia's rent supplement program (now often delivered as the Canada-Nova Scotia Targeted Housing Benefit) can support low-income tenants in the units you build. Essentially, a rent supplement bridges the gap between what a low-income tenant can pay and the market rent for the unit. As the non-profit landlord, you receive the supplement so that you're getting a fair rent without charging the tenant more than they can afford (usually no more than 30% of their income).
In 2024, the Province expanded the rent supplement program to assist more people. In fact, by adjusting the program to be more efficient, the government is creating up to 1,000 more rent supplements for eligible Nova Scotians. This means more low-income households will have help paying rent. For a non-profit housing provider, that's great news: you can fill your new building with tenants who have supplements, ensuring those tenants pay an affordable rent while you still receive enough income to cover operating costs.
Let's say your co-op built 20 units, and you want half of them to be deeply affordable (for very low-income tenants). You could reach out to Housing Nova Scotia to arrange rent supplements for those 10 units. If the market rent is $1,000 but your tenants can only pay $500 based on their incomes, the supplement program will pay you the $500 difference (exact formulas vary) so you still receive $1,000 total. Your tenants are happy and stable, and your co-op has steady rental revenue to maintain the building. This operating support often makes or breaks the financial viability of affordable projects, so don't overlook it.
Practical tip: Coordinate your capital and operating funding strategy. When you apply for capital funding (loans/grants), mention if you plan to house very low-income tenants with rent supplements – this shows funders your project will serve those in need, and that you've thought about financial sustainability (since rent supplements mean you can pay your bills long-term). Funders like CMHC often want assurance that affordable units will remain viable; having a rent supplement plan is a big plus.
Navigating the municipal approval process can be one of the most time-consuming parts of developing housing. Fortunately, HRM has introduced measures to fast-track approvals and reduce fees for affordable housing projects, especially those led by non-profits. These local incentives ensure that valuable funding (like the programs above) isn't wasted on red tape. Let's break down what HRM offers and how to take advantage of it:
One of the most tangible benefits HRM provides is waiving many of the standard municipal fees for non-profit housing developments. In November 2020, the Halifax Regional Council approved an amendment to eliminate the "majority of municipal-related construction fees" for registered non-profits or charities building affordable housing. This means your project's fees for things like building permits, development permits, subdivision applications, variances, and site plan approvals do not have to be paid to the city, as long as you meet the criteria. (This can save thousands of dollars – money better spent on your build!).
The waived fees include virtually all the typical planning and permitting charges, such as:
In other words, whether you're just applying for a simple duplex building permit or going through a rezoning, the city portion of the fees is waived for non-profits. What's not waived? A few things that the municipality can't legally waive or that are charged by other authorities: for example, the Halifax Water development charge (for water/sewer infrastructure) still applies, and things like any required security deposits or off-site infrastructure costs are not waived. But the bulk of fees you'd normally pay to HRM (often $10,000-$40,000+ on a modest project) are forgiven.
To qualify for the fee waiver, your organization must meet the criteria set out by HRM. The main points are: you need to be a registered non-profit or charity for at least 1 year, your mandate must include providing affordable housing, at least 60% of your development's floor area (or units) must be for housing, and you must own the property (or the property is owned by government or an agent for housing). When applying for your permits, you'll have to submit proof of these (like your non-profit registration and a statement of your affordable housing mandate, which could be your mission statement or charitable purpose). HRM has a simple application form to request the fee waiver – essentially, you apply to have your municipal fees waived concurrently with your permit application.
Aside from the fee waivers, note that HRM also introduced multi-year property tax relief for non-profit organizations. If your non-profit owns property, you can apply under Administrative Order 2014-001-ADM for tax relief. In 2020, HRM streamlined this so that housing organizations can secure multi-year tax relief more easily. This means you might pay little or no municipal property tax on your affordable housing project for a set period. Not only does that reduce operating costs, but interestingly, HRM notes it's "especially beneficial for housing organizations who can claim multi-year tax relief when applying for funding from CMHC". (CMHC likes to see that municipalities are waiving taxes, because it improves your project's affordability). So be sure to look into tax relief with the city once you acquire a property for development.
Time is money in development – every month of delay is a month families aren't housed (and often means higher costs). Recognizing this, Halifax has been working on faster approvals, especially for smaller-scale projects. A big part of speeding things up is allowing more projects to be built "as-of-right" under existing zoning, which avoids lengthy public hearing processes. In fact, in 2023 HRM secured a federal Housing Accelerator Fund grant to overhaul processes and zoning to fast-track housing. As part of this plan, Halifax will now allow up to four residential units on one lot in most areas as-of-right (without needing a rezoning). They are also increasing allowable densities and reducing parking requirements, and dedicating staff to an affordable housing strategy. All this means a non-profit project that might previously have needed a rezoning (taking a year or more) could now be permitted much faster under current zoning rules.
Generally, the approvals process will go like this:
Remember, HRM's recent infusion of federal Housing Accelerator Fund money (nearly $80 million) is specifically to improve permitting processes and cut approval times. The city is digitizing and streamlining its systems. The goal is to fast-track at least 2,600 housing units over three years – and that includes affordable units. So you, as a non-profit builder, are exactly who the fast-track system is meant to help. Take heart that the "system" is being re-geared to get your project approved and built with less delay than in the past.
Bottom line: HRM is on your side – policies are in place to reduce costs and speed things up. By planning smartly (site selection, using new zoning freedoms) and taking advantage of the fee waivers and support, you can significantly cut down the bureaucratic friction in getting your project from an idea to reality. Next, let's look at how choosing the right development partner can further keep your project on time and on budget.
Budget certainty is a non-profit developer's best friend. After piecing together grants, loans, and donations, the last thing you want is an unpleasant surprise during construction – like cost overruns that blow your pro forma out of the water. This is where Helio Urban Development's model offers a big advantage to non-profits and co-ops: transparent, fixed per-square-foot pricing.
At Helio, we do things a bit differently from traditional custom builders. We've developed a suite of pre-designed housing plans (from single-family homes up to 8-unit buildings) and we build them at a fixed price per square foot. For example, we advertise all-inclusive build costs starting around $168 per sq.ft in the Halifax area for standard finishes. That means if you're building a 6,000 sq.ft. apartment building, you know upfront it will cost roughly on the order of $168 * 6000 = $1,008,000 (depending on site specifics). We commit to that price in our contract.
With a fixed-price contract, you won't be hit with surprise add-ons or "escalation" clauses. We account for everything in the agreed price – from excavation and foundation to finishes. As long as the scope doesn't change, the price stays locked. This allows non-profits to plan finances accurately and align with their funding. If you have a grant of $500,000 and a loan of $500,000, and our fixed price is $1,000,000, you can proceed confidently. Cost overruns aren't eating into your operating reserve (or forcing you to fundraise mid-construction). Our model shifts the risk of cost increases from you to us as the builder, which is a relief for any organization that can't easily absorb extra costs.
We break down the cost by square foot, which demystifies the budgeting process. Non-profit boards and stakeholders might not be experts in construction, but they understand price per square foot as a benchmark. We make it easy to see how the costs add up, so you can explain to your members or funders exactly what their dollars are building. If, for example, you want to compare building a duplex vs. a fourplex, we can show you each option's total price and $/sq.ft, helping you make an informed decision that fits your budget. Transparency builds trust – something we value highly, especially when working with community organizations.
Helio's approach is a design-build style with pre-engineered plans. You don't need to hire a separate architect for a custom design (we've got designs ready to go), and you don't need to manage multiple contractors. This "one-stop shop" saves on professional fees and streamlines coordination. For a non-profit that might have a small staff or even volunteer project managers, having Helio handle the heavy lifting (permits, site work, construction) under a fixed contract is a weight off your shoulders. We even handle those site-specific considerations like connecting to services, typical landscaping, etc., within the agreed price – meaning fewer variables for you to worry about.
Using pre-optimized designs means we can start construction faster (no lengthy design phase). For example, if you come to us wanting a fourplex on a lot in Bedford, we might suggest our "Willow Fourplex" design. It's already engineered to meet code and fit well on common lot sizes, so we can quickly adapt it to your site and submit for permits. Faster approvals (especially with HRM's new fast-track for small projects) combined with our efficient construction means your project gets completed sooner – which also reduces carrying costs and gets families housed quicker. In an environment where grant funding might have deadlines (for instance, needing units occupied by a certain date), our speed is a big asset.
We stay up-to-date on what funding programs require. Need some units accessible or energy-efficient to qualify for a CMHC loan grant? We can incorporate, say, a wheelchair ramp, wider doorways, or added insulation and heat pumps to meet those criteria – and we'll factor it into the fixed price from the start. Our team's familiarity with programs means we design and build with those checkboxes in mind, potentially making it easier for you to get that forgivable loan or grant. Essentially, we share your goal of meeting affordability targets without gold-plating the project; we focus on cost-effective, durable construction that satisfies funders and future residents alike.
In short, Helio's fixed-price, per-square-foot model is about predictability and partnership. We know every dollar counts for non-profits. By removing the uncertainty in construction costs, you can focus on what matters: securing the funding and ensuring the homes you build truly serve your community. We take pride in being a developer that values affordability, transparency, and efficiency – principles that align well with non-profit objectives.
(For more on our building approach and to see sample plans/costs, check out Helio's services page where we detail our offerings in HRM. We list example projects (duplexes, triplexes, etc.) with their square footage and fixed prices, so you can get a feel for what's possible within your budget.)
To bring all these pieces together, let's look at a hypothetical (but realistic) example of how a non-profit could successfully build affordable housing in HRM. Meet Harbourview Housing Co-operative – a fictional community housing co-op based in Dartmouth that set out to create affordable homes for families.
Harbourview Co-op had been renting units across HRM for its members, but rising rents meant they wanted to develop their own buildings to provide permanently affordable housing. They identified a vacant piece of land in Dartmouth, in an area close to transit and schools, ideal for an affordable housing project. The co-op envisioned a 10-unit apartment building (two floors of 5 units each, mix of 1-3 bedroom units) to house moderate-income families and seniors. Their goals were to keep rents at least 30% below market and ensure long-term security of tenure for co-op members.
The co-op's volunteer board knew the project, at roughly 10 units, would cost in the ballpark of $2 million to construct. They applied to Nova Scotia's Affordable Housing Development Program and were approved for forgivable loans covering 50% of the units – effectively, funding for 5 of the 10 apartments. This amounted to ~$1 million in provincial funding (which they wouldn't have to pay back as long as those units remain affordable for 15 years). For the rest, they turned to CMHC. Through the National Housing Co-Investment Fund, they secured a $500,000 capital contribution (grant) and a low-interest loan of $500,000. The co-op also raised $100,000 in community donations for contingency and small items. Bottom line: their $2M project was fully funded by a combination of forgivable loans, a grant, and a very low-interest loan – no conventional mortgage needed!
To ensure even very low-income members could live there, the co-op partnered with Housing Nova Scotia to allocate rent supplements to 4 of the units. Those 4 units would house households who could only afford deeply subsidized rent (e.g. single parents, individuals on disability benefits). With the supplements, the co-op receives full rent on those units (split between the tenant portion and government portion), which helps cover maintenance and the small CMHC loan payments. This also satisfied the province's requirement that the units serve low-income households. When pitching the project, the co-op highlighted that Nova Scotia was expanding rent supplements by 1,000 units, showing they were ready to plug into that initiative.
Early on, Harbourview Co-op consulted with HRM's planning staff and confirmed the land was zoned appropriately under new rules to allow their 10-unit building without a rezoning (the area's land-use by-law, thanks to recent changes, permitted up to 12 units as-of-right). Because their design met all the regular requirements (height, parking, etc.), the approval was administrative. They diligently prepared their paperwork for permits. When they submitted their development and building permit applications, they also submitted the fee waiver request as a non-profit. HRM approved their fee waiver, saving them an estimated $25,000 in combined fees (building permit, site plan application, etc.) – money they redirected to upgrade the building's insulation (a nice bonus for energy efficiency!). With no rezoning needed and fees waived, the permit process was smooth. In fact, from the time of application to permit issuance was only 8 weeks – remarkably fast for a project of this size, thanks to the fast-track approvals in HRM and the co-op's preparation.
Harbourview Co-op decided to engage Helio Urban Development as their builder under our fixed-price model. We worked with them to adapt one of our pre-designed layouts (a 10-unit version of our popular multi-unit plan) to fit their site. The fixed price came to about $1.95 million ($175/sq.ft for a mid-range finish). This price was within the funding they'd assembled. Because everything was agreed upfront, the co-op's board was comfortable signing the contract knowing the project would not exceed the budget. Construction began promptly after permits. We completed the building in about 9 months. Throughout the build, any small changes the co-op requested (like adding a community room) were handled transparently with cost implications clearly communicated, and mostly offset by contingency funds. In the end, the project came in on budget and on schedule. The co-op did not have to resort to any emergency fundraising or cost-cutting because the fixed-price contract protected them from overruns.
By the following year, Harbourview Housing Co-op welcomed 10 families into their new homes. The apartments rent for roughly $700-$900 (depending on unit size), well below Halifax's market rents of $1100-$1500 for similar units. Four households pay even less, around $300-$400, because of rent supplements, and the government covers the rest of those rents. The co-op members have security, knowing their rent will only increase modestly as needed to cover costs, not spike with the market. The building itself is modest but modern – energy-efficient heat pumps, accessible ground-floor units, and a small playground on the lot for children.
From the co-op's perspective, the project was a major success. They leveraged every incentive available: free money (forgivable loans/grants), operational support (rent supplements), municipal breaks (fee waivers, tax relief), and a reliable builder (Helio's fixed price) – to achieve something that initially seemed out of reach for a small community organization. And they did it without incurring a heavy debt load or risking the co-op's financial health.
This case study might be fictional, but it's inspired by real projects and the very real opportunities available now in HRM. Your organization's project might differ in scale or mission, but the core idea stands: with the right mix of incentives, supportive policies, and partnerships, non-profits in HRM can build affordable housing successfully.
Affordable housing development in HRM is no longer only the domain of big developers or government agencies – non-profits and co-ops have a toolkit of incentives and fast-track processes that make it very achievable to create community-owned homes. Let's recap the key points from this guide:
At Helio Urban Development, we're passionate about seeing more affordable homes built in our communities. We hope this guide has demystified some of the processes and shown that yes, it is possible for non-profits in HRM to get projects off the ground quickly and cost-effectively. If your organization is considering building affordable housing in HRM, now is a great time to act – the incentives are generous and the approval climate is favorable.
We're here to help your non-profit navigate incentives, approvals, and construction. Let's build the affordable homes that Halifax so urgently needs!
Contact Helio Urban DevelopmentThank you for reading! If you found this guide helpful, or if you have any questions about the content, feel free to reach out to me (Erica) or the Helio team. Let's build a better, more affordable HRM, one home at a time.
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