The Urban, Rural and Northern Indigenous Housing Strategy is a $4-billion federal investment in housing for Indigenous people living in urban, rural and northern areas, outside the on-reserve housing system. In April 2026 the federal government changed how it is delivered: instead of creating a National Indigenous Housing Centre, close to $1.7 billion will flow through Build Canada Homes, nearly $2 billion through distinctions-based agreements, and up to $300 million through Indigenous Services Canada for urgent needs.
This post explains where the strategy came from, who delivers it now, how off-reserve Indigenous housing providers differ from on-reserve housing departments, and where a builder fits. It is general information drawn from federal sources. Intake details were still to come as of the April 2026 announcement, so confirm current status with Canada Mortgage and Housing Corporation (CMHC), Build Canada Homes or Indigenous Services Canada (ISC) before you plan around it.
Why is there a separate strategy for off-reserve housing?
Because most Indigenous people do not live on reserve. According to Statistics Canada's 2021 Census release, "Among status First Nations people, just over two-fifths (40.6%) lived on reserve in 2021." The same release reports that "In 2021, 801,045 Indigenous people lived in a large urban centre," and that the share of Indigenous people living in a large urban centre "rose from 43.1% to 44.3%" between 2016 and 2021. More than half (55.4%) of Métis lived in a large urban centre in 2021.
On-reserve housing has its own federal programs. ISC's page on the First Nations On-Reserve Housing Program says "Annual funding allocations received under ISC's 1996 On-Reserve Housing Policy are provided to First Nations," and that "ISC does not cover the full cost of housing." Those allocations go to First Nations for housing on reserve, which leaves the larger off-reserve population to other programs and to Indigenous housing providers in towns, cities and the North. The Urban, Rural and Northern (URN) strategy is the federal response to that gap.
How did the strategy develop?
CMHC's What We Heard report traces the timeline:
- The 2021 mandate letter of the former Minister of Housing and Diversity and Inclusion committed to co-develop the strategy as "a stand-alone companion to the National Housing Strategy," and to create "Canada's first-ever National Indigenous Housing Centre."
- "Budget 2022 proposed to invest $300 million over five years, starting in 2022-2023, through CMHC to co-develop and launch the Strategy." A portion went to CMHC for Indigenous-led engagement; "the majority was allocated to Indigenous Services Canada (ISC) to address urgent and unmet needs."
- Engagement on the strategy ran "between January and April 2023."
- "Budget 2023 proposed $4 billion over seven years, to implement a co-developed Strategy starting in 2024-2025."
In a December 2023 news release, CMHC confirmed that "Budget 2023 committed $4 billion over 7 years starting 2024 - 25 for the implementation of the Strategy," and announced a plan to select an Indigenous-led organization to establish a "For Indigenous By Indigenous (FIBI) National Indigenous Housing Centre."
What did NICHI deliver?
The urgent-needs money from Budget 2022 was distributed by the National Indigenous Collaborative Housing Incorporated (NICHI). The What We Heard report notes that "On June 8, 2023, it was announced that the National Indigenous Collaborative Housing Incorporated (NICHI) will deliver the urgent and unmet needs funding through a proposal process."
An ISC news release from December 2024 describes NICHI as "an Indigenous-led national housing organization" and gives the totals at that point: "$275.1 million out of a total funding amount of $281.5 million is being distributed to 74 projects across the country," projects "aimed at building more than 3800 units." It said "This funding was provided to Indigenous Services Canada through Budget 2022." The release lists the main uses: "funding for acquisitions of new properties and buildings, construction of new facilities, repairs and renovations," and states that funding went to "non-profit, Indigenous-led housing organizations." NICHI's expression of need process ran "from late November 2023 to January 12, 2024."
Those figures were a snapshot as of December 2024; later releases may differ.
What changed in April 2026?
On April 24, 2026, in Behchokǫ̀, Northwest Territories, the federal government announced what CMHC's strategy page calls "an updated approach for delivering of the Urban, Rural and Northern Indigenous Housing Strategy." The Housing, Infrastructure and Communities Canada news release sets out the split of what it calls "a $4-billion federal investment to support Indigenous housing in urban, rural and northern communities":
- Build Canada Homes: "Close to $1.7 billion will be delivered by Build Canada Homes" to support Indigenous housing providers.
- Distinctions-based agreements: "Nearly $2 billion will go towards distinctions-based agreements with First Nations, Inuit and Métis partners." This "includes $1.2 billion in existing funding agreements" with ISC and Crown-Indigenous Relations and Northern Affairs Canada, plus "a $780 million top-up in new funding for the agreements."
- ISC: "up to $300 million will continue to be made available through Indigenous Services Canada" for urgent housing needs.
The release also ends the plan for a separate centre: "To support the delivery, the Government had originally intended to establish a National Indigenous Housing Centre. With the creation of Build Canada Homes, the Government will instead leverage this existing structure to deliver needed funding to communities." It describes Build Canada Homes as "Canada's new federal agency, with the mandate to build affordable housing, including in collaboration with Indigenous partners," launched in September 2025.
Two points for planners. First, the release says "Additional information on implementation, including intake processes and timelines, will be shared" as Build Canada Homes advances delivery planning, so watch for intake announcements rather than assuming a program is open. Second, it says funding through Build Canada Homes "does not limit Indigenous partners' ability to work with Build Canada Homes on other housing initiatives," subject to its eligibility requirements.
How do off-reserve Indigenous housing providers differ from on-reserve housing departments?
The two systems serve different people under different rules. A summary of the main differences, based on the sources above:
- Who they serve. An on-reserve housing department serves its First Nation's members on reserve land, under ISC's on-reserve housing policy where "First Nations and First Nations organizations continue to enhance their capacity to manage their on-reserve housing programs." Off-reserve providers often serve Indigenous people of any nation. CMHC's What We Heard report quotes CHRA's Indigenous Housing Advisory Caucus: "'urban native' and 'rural and native' housing providers have housed and supported Indigenous Peoples regardless of their ancestry, origin or nation."
- How they are organized. NICHI's urgent-needs funding went to "non-profit, Indigenous-led housing organizations." On reserve, the First Nation manages its own housing program under ISC's policy.
- How money arrives. On-reserve housing receives annual ISC allocations under the 1996 policy, plus CMHC programs. Off-reserve providers have depended on project funding such as NICHI's, and under the April 2026 approach will look to Build Canada Homes for close to $1.7 billion of the strategy.
- What they provide. The What We Heard report records calls for "culturally appropriate wraparound programs" alongside housing, and notes that some organizations "have provided housing and supports to the urban and rural Indigenous population for over 50 years."
There are also practical differences you should confirm for each site rather than assume: who issues the building permit, which zoning rules apply, who owns the land, and who will hold the operating agreement. A Métis settlement or a Métis government delivering housing is a different case again; our post on Métis housing governance and funding covers it. For on-reserve capital programs, see our partner site's funding guide for First Nations modular buildings.
What should an off-reserve housing provider prepare now?
With intake details still to come, the useful work is the work that any funder will ask for:
- Document need. Know your wait list by household size and the bedroom counts it calls for, and who is in core housing need.
- Secure a site. Funding rounds move faster than land deals. Know which parcels you control or can acquire, and what servicing they need.
- Get a realistic cost and schedule. A builder's budget price, delivery timeline and site-work list makes a proposal credible.
- Decide your operating model. Who manages tenants, maintenance and supports after move-in, and how rents and subsidies will cover operating costs.
- Watch the right channels. Track CMHC's strategy page and Build Canada Homes announcements for intake processes and timelines.
Where does a builder fit in?
Build Canada Homes says it is "leveraging public land, flexible financial tools, and modern methods of construction." For a provider, a builder's role is to turn a site and a unit mix into a price, a schedule and homes that are ready on time, so funding is spent on housing rather than delays.
Herauf Modular builds homes and community buildings as finished sections indoors in its Saskatchewan and BC plants, then delivers and sets them on site. Every unit meets or exceeds CSA A277 and the National Building Code for climate zones 6 through 8. Most builds are manufactured and delivered in about 16 weeks, with foundations, pads and services prepared on site at the same time. At Buffalo Lake Métis Settlement in Alberta, Herauf delivered 20 homes with CMHC and government agencies, installed within days, turning an empty plot into a lived-in community. Herauf also built St. Theresa Point First Nation's child and family services office in Winnipeg. Herauf does not administer funding or apply on a provider's behalf, and cannot promise eligibility.
If you are an Indigenous housing provider planning homes in an urban, rural or northern community, contact Herauf Modular. We reply to enquiries within one business day.
This guide is general information, not legal or financial advice. Program rules change: confirm the details with the program, your Indigenous Services Canada regional office or CMHC before relying on them. Herauf does not administer any program or apply on a community's behalf.