Hay River, N.W.T., launches grant program to spur housing development

CBC

05-02-2025

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The Town of Hay River has rolled out a new $2-million grant program aimed at addressing the N.W.T. community's housing challenges.
On Friday, the town opened up the application process for the first phase of its Residential Development Grants Program, which offers funding of up to $35,000 per new multi-family unit. The second phase of the program, which should start in May, will offer $20,000 grants for accessory dwelling units, such as garden or garage suites.
Glenn Smith, the town's senior administrative officer, says the program is part of Hay River's strategic housing plan which was developed in 2023.
Smith said the community was very concerned about the local housing supply at that time, especially following the 2019 fire that closed the 17-storey Mackenzie Place high-rise.
"That was 100 and some units," he said. "I think at that point we were into a negative vacancy rate, especially for apartments within the community."
Smith said the town hopes the new grant program will make multi-family development more viable and encourage investment in the community.
The town secured funding through the Canada Mortgage and Housing Corporation (CMHC) Housing Accelerator Fund. It also plans to use the money to fund eight other initiatives, such as amending bylaws and policies and hiring a coordinator to support the execution of the housing plan.
The funds are for a three-year term, and the town hopes to see 30 new permitted housing units over that period.
However, not everyone is convinced that the grant program will have a significant impact on the housing market. Jane Groenewegen, a local businessperson and longtime resident of Hay River, says that phase one's impact may be limited due to the high costs of construction.
"It's not a large amount of money," she said. "There has been somewhat of a reprieve in the cost of building materials, but the cost of new development these days is very, very high."
Groenewegen commended the town's effort to stimulate development. She is more optimistic about the program's second phase and thinks it could have a greater impact on the community.
The second phase will provide $20,000 grants to homeowners who want to develop new rental units, such as basement or garden suites, within their existing properties.
"There could be vacant spaces that are undeveloped within existing homes — [this grant] could go toward alleviating the sense that there's not a lot of options and places to rent," she said.
Groenewegen also said that the perception of a housing shortage may not be entirely accurate. Many people who come north for employment also have homes and lives down south that they are investing in.
"People talk about affordable housing, but what's affordable?" she said. "Many people coming here have good-paying jobs and are focused on saving money, not investing in local property."
Groenewegen said many of the unhoused residents in the community and across the North need more than a roof over their heads. She said they also need additional support services and those services are within the mandate of the government to provide.
"So when we look at the housing shortage, I think we have to look at the spectrum of people looking for accommodation," she said. "I think there's more to the picture."
Applications for the program's first phase are open until April 25, with more information available on the town's website.