By Sherry MacLeod
Managing Broker, Cape Breton Realty
October 3, 2026
We talk a great deal about the housing shortages, and not the type of housing we need. Perhaps we should spend more time talking about the help available to do something about it for the types of homes we need.
There’s money on the table for rental housing, including opportunities worth exploring here in rural Nova Scotia.
In Arichat, the Province announced $990,000 in forgivable funding in July 2025 for Lennox Place Limited to convert a commercial building into ten apartments, nine designated affordable. The total project cost was approximately $2.1 million. My understanding is that people are now living there.
That is the kind of example I like: a local project creating homes in an existing building.
But what would another property owner or developer need to qualify for assistance?
After reviewing the provincial information, my understanding is that Nova Scotia’s Affordable Housing Development Program requires at least five affordable rental units. Those units must remain affordable for at least fifteen years.
The rents must be at least 20 per cent below the average market rent established for the location, and must also satisfy the program’s household-income-based limits.
For illustration, if the approved average market rent was $1,500, a rent 20 per cent below that would be $1,200. Other program limits could require a lower amount. And affordability is becoming an increasingly serious issue. According to the latest Rentals.ca National Rent Report, Nova Scotia now has the highest average asking rent for apartments and condominiums of any province in Canada, at $2,356 a month. That certainly makes finding ways to create more rental housing even more important.
These can be privately owned apartments serving eligible households. The entire building does not necessarily have to operate at affordable rents.
The provincial website says funding is available for up to half the rental units in a project, or up to all units where a project has fewer than ten apartments. That refers to the number of units supported, not a promise to cover all construction costs.
Private developers must generally contribute at least 20 per cent of eligible capital costs as equity, through cash or unencumbered land.
And “forgivable” comes with obligations.
My understanding is that owners must honour their funding agreement, maintain the agreed affordability, verify tenant eligibility and submit annual reports. The agreement governs the funding conditions; developers should confirm the forgiveness schedule and consequences of noncompliance before signing.
The Province also requires relevant development and property management experience, or appropriate experienced professionals, along with the financial ability to cover overruns.
There is federal assistance as well.
CMHC’s Apartment Construction Loan Program provides repayable, low-cost financing for eligible rental construction and commercial conversions. Projects need at least five rental units and a minimum loan of $1 million.
One affordability option requires at least 20 per cent of units to have rents no higher than 30 per cent of median total family income in the local market, maintained for at least ten years. Qualifying support under another affordable housing program can provide an alternative route.
Then there is the HST rebate, which has different rules.
From what I have read, qualifying rentals in Nova Scotia can receive a full rebate of both HST portions without a requirement for below-market rents.
Generally, a building needs at least four apartments with private kitchens, bathrooms and living areas, or ten residential units. At least 90 per cent must be held for qualifying long-term residential use.
Construction must begin after September 13, 2023, and before 2031, with substantial completion before 2036.
For developers building to rent, the tax calculation generally arises around substantial completion and first occupancy. The rebate relates to that tax assessment, rather than simply adding up construction receipts. An accountant should plan the claim and cash flow.
Before we decide a potential housing project simply won’t work financially, it is worth finding out what money may be on the table.
An older commercial building, a suitable vacant lot or a modest apartment development could provide homes that a community badly needs.
Every proposal still needs sound construction estimates, suitable zoning, services and realistic operating numbers. Funding combinations also need confirmation.
But six apartments here and twenty there can make a difference to seniors, workers and young families.
We have a local example. We have programs to investigate. Let’s bring the right people together and see what else we can build.